Fintotal News Analysis | Non-CTS-2010 Cheques Will Take Much Longer to Clear; Use CTS Cheques
Non-CTS-2010 Cheques Will Take Much Longer to Clear; Use CTS Cheques
Ruby Jacob, 18 Jul 2013

Non-CTS cheques were meant to be discontinued from use throughout the country from 31 July 2013. Though banks have started issuing new CTS-2010 based cheque books to customers, a large number of non-CTS-2010 standard cheques are still being used.

RBI has decided to separate clearing system of CTS 2010 cheques and non-CTS from 1 January 2014. Non-CTS-2010 standard cheques will have special clearing sessions. They will be cleared only 3 days a week, on Monday, Wednesday and Friday, in 3 centres in the country. The frequency of clearing will reduce to twice a week by October 2014 and just once a week by November 2014.

What this means for you is that non-CTS-2010 cheques if continued to be used will take a lot longer to be cleared. If these cheques are presented for clearing on other days then they will be returned and the presenting bank (that is, bank where the cheque is deposited) will have to present them again on the special clearing days.

RBI has advised banks to make efforts to withdraw non-CTS-2010 cheques in circulation and replace them with new CTS-2010-standard cheques for all customers.

Non-CTS cheques already issued

If you have issued the older non-CTS Post-Dated Cheques (PDCs) or EMI cheques for loan repayment then you can switch to ECS or auto debit instructions. If ECS facility is not available in your location you can replace PDC/EMI non-CTS-2010 standard cheques with new CTS cheques to avoid delays and inconvenience in clearing.

What is CTS cheque

Cheque Truncation System (CTS) - 2010 is a new standard of cheques issued by RBI in 2010. These have enhanced features for customer safety and make processing of cheques easier. CTS-2010 standard cheques will not be physically moved between presenting bank and drawee bank. Instead the presenting bank sends an electronic image of the CTS cheque to the clearing house who forwards it to the drawee bank (bank who is supposed to pay).

You can check if your cheque is CTS-2010 by looking for certain features. Near the perforation on the left hand side of the cheque leaves, 'CTS-2010' will be printed vertically. If you still have old cheque leaves you can return them to your bank for replacing with new CTS cheque book.

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