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New Cheque formats under New Cheque Truncation System introduced by RBI

Replace your old Cheque books

The latest directive RBI’s says that one  may not be able to use the old cheques with the implementation of the new Cheque Truncation System (CTS-2010) from next year onwards.  The CTS 2010, eliminates physical movement of cheques for the purpose of clearing. Instead, only the electronic images of the cheques, along with the key information, will be captured and transmitted for clearing. This will make the clearing process faster, more efficient and secure. However, in order to that being successful, patrons have to switch to new cheques which have to be issued with prescribed standard features latest by December 31.

This means that if you haven’t received the new form of cheque books already, then speak to your banks as early as you can. The replacement can be done using the following methods:

1. Send new cheque books by registered post and ask users to cancel the old ones. Customers would or may be asked to show proof of the cancellations, to the bank.

2. The Banks may also ask customers to surrender their older cheques.

3. Alternatively, the customers can also visit the banks themselves and surrender their old cheques and receive the CTS-compliant ones.

The Banks will not charge any replacement fee for this purpose.

Handling of EMIs: In the event of having issued post-dated cheques (PDCs) for supporting any EMIs for loans, the customer will have to issue fresh cheques to the service provider. The NBFCs who have accepted post-dated cheques for future EMI payments from their customers, have to get them replaced with new CTS-2010 standard compliant cheques latest by December 31, 2012. This will be applicable to all banks as well. 

Old Cheque encashments: Any Cheque which is lying with you should be encashed and should not be delayed. The payments will be honoured till 31st Decemeber 2012 only as per the RBI mandate.

 

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About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

One response to “New Cheque formats under New Cheque Truncation System introduced by RBI”

  1. esrsridhar@gmail.com says:

    Sir understand the date for implementation of this new system has been postponed to 31ths march 2013. Are there any notification to this effect

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