Cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india. Cheque forms known as cts2010 as per rbi circular dated 22nd february 2010. Rbi extends deadline for noncts cheques till july 31. Rbi has taken good initiative of cts it is now mandatory for banks to issue standardized form of cheuqes as per cts2010 standard guideline. Use of dark colored ink to write or print on cheques.
As per the direction of reserve bank of india rbi, non cts2010 cheques will be withdrawn by 31st march 20. All customers who hold a cheque book issued by the bank prior to 31 march 2012, are requested to apply for a new cheque book as per the cts2010 standard at. Latest newsdeadline of 31st december 2012 is extended to 31st march 20 from rbi. Now use your old cheque book till 31st march 20 praveen unnikrishnan december 17, 2012 add comment reconsidering the date for the implementation of cts 2010, reserve bank of india rbi has extended the deadline to april 01st, 20. Important message cts 2010 regulation applicable to. Procedural guidelines for cheque truncation system cts. Rbi new cheque cts 2010 guide line standardization and enhancement of security features in cheque formsmigrating to cts 2010 standards a. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Indias largest lender the state bank of india sbi will implement the cheque truncation system cts 2010, the new standard of cheques as mandated by the reserve bank of india. The reserve bank of india rbi on monday extended the deadline to migrate to newlook cheques cts2010 standard cheques with more security and standardised features to. Rbi guidelines on standardization of security features for cheque leaves, referred to as cts2010 are aimed at enhancing customer safety and facilitating easier processing of cheques.
As per rbi, banks are advised to issue only cts2010 standard cheques to. With the implementation of cheque truncation system cts from april 01, 20 the old passbooks issued by banks to its customers will become void. Cheque truncation system basically helps in faster clearance of the cheques in the banking records. It is not applicable to cheques cleared under physical exchange of instruments. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for faster clearing of cheques.
Cheque truncation system cts or imagebased clearing system ics, in india, is a project of the reserve bank of india rbi, commenced in 2010, for faster clearing of cheques. In order to bring efficiency in the cheque clearing, all cbs enabled banks have been advised to issue only payable at par multicity cts 2010 standard cheques to all eligible customers without extra charges with appropriate board approved risk management procedures based on risk categorization of accounts. Bank customers do not need to discard their non cts 2010 standard cheque books in a hurry to get their multicity cts 2010 standard cheque leafs. If you are still in possession of nonctc cheque books, then it is in your own. This directive has come in order to migrate to cheque truncation system cts 2010 standards by year end i. Check your current cheque book is it valid new cts. Rbi guidelines on standardization of security features for cheque leaves, referred to as cts2010 are aimed at enhancing customer safety and facilitating easier. If you are still in possession of nonctc cheque books, then it is in your own interest to get those replaced with cts2010 standard cheque books latest by december 31. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise.
Cheques issued by any bank needs to be compliant with cheque truncation system cts 2010 standards, according to rbi reserve bank of india guidelines. Noncts compliant cheques shall not be processed for clearing with effect from january 1, 2019, pnb said in a notification. One should be using cts 2010 compliant cheques issued by bank from 1st april 20. Barman, to interalia suggest an appropriate model for cheque truncation in india. Banks, customers go slow in adopting new cheque book the. Cts is based on a cheque truncation or online imagebased cheque clearing system where cheque images and magnetic ink character recognition micr data are captured at the collecting bank branch and transmitted. Bank customers do not need to discard their noncts 2010 standard cheque books in a hurry to get their multicity cts2010 standard cheque leafs. The reserve bank of india rbi in its statement on developmental and regulatory policies issued today has informed that the cheque truncation system cts, which is currently operational at the major clearing houses of the country will be made operational pan india by september 2020. Rbi extended deadline for cts 2010 standard cheques. Indian bank charges rupees thirty for one cts2010 cheque book, from. All chequebooks issued by the bank after aug 2011 are cts 2010 compliant. If the cheque book is not with cts2010 cheque leafs, they are referred to as noncts cheque books. Reserve bank of india procedural guideline for cheque. Payment and settlement systems, central office, reserve bank of india, mumbai before 10th of the succeeding month 1.
In earlier notification, rbi has instructed banks to implement the new cts 2010 from january 01, 20 which is now been postponed for 3 months. Cts2010 standard cheque introduced for standardization of security features and easy processing. Cts2010 cheque truncation system cheque is a new type of cheque introduced by reserve bank of india. Cheque issuing banks shall make all efforts to withdraw the noncts2010 standard cheques in circulation before the extended timeline of 31 july 20 by creating awareness among customers through sms alerts, letters, display boards in branchesatms, logon message in internet banking, notification on the website etc, rbi said. It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts2010. So if you are still holding a noncts cheque book, then you should ask your bank to issue a fresh cheque book. Rbi extends cheque upgradation deadline till march next year 14 dec, 2012, 07. Earlier, cheques deposited by customers used to be presented by the collecting bank to the paying bank over the counter of t. No clearance of noncts compliant cheques from january. Cheque book issued prior to december 2010 is noncts compliant.
Rbi has implemented the new cheque truncating system cts and from 1st january 20, only the new cts complaint cheques will be honored. Bank of india rbi has advised all banks to issue only cts2010 cheque. Have you checked if your old cheque book is cts2010 compliant. Come april 20 and your old cheque books from your bank account in india will become void. A reproduction of the sample cheque available on rbis website.
Procedural guidelines for cheque truncation system cts version 2. According to banking experts, cts2010 cheques have certain common security features and standardised field placements for enabling image based processing of cheques through optical image character recognition technology, which are absent in noncts cheques. Get your noncts cheque book replaced immediately, it said. Allottment of bank codes is centralised at the office of the chief general manager incharge, department of information technology, reserve bank of india, central office, shahid bhagat singh marg, mumbai400001. Banks customers should use cts 2010 cheques which are not only image friendly but also have more security features. Cts 2010 standard cheques will be cleared on all working days. All the banks are now required to issue cts2010 cheques only.
Thus, it is considered as the major landmark in the indian banking industry. The rbi has extended the deadline of march 31 till july 31 for issuance of new cts cheque books books and withdrawal of all old format cheques, says a. Date with effect which the bank has commenced issuing cts2010 standard cheques across all branches. Rbi has notified all banks to implement standardization and enhancement of security features of cheques. So it is necessary for all to understand how your new cheque format looks like. As per guidelines, non cts2010 cheques issued by bank in india will be withdrawn from circulation by march 31, 20.
All residual noncts2010 cheques with customers will continue to be valid and accepted in all clearing houses including. Since rbi is now moving towards accepting only cts 2010 standard compliant cheques, please note that the old noncts 2010 standard cheque forms should not be used post 31 december 2012. Rbi has decided to launch this system and all banks across india are required to follow rbi guidelines in this regard. Cheque books not containing cts2010 cheque leafs are called. Therefore, we recommend you to replace your noncts2010 cheque book with a new cheque book at the earliest. So, better hurry up if you havent got your old cheque books replaced with cts2010 standard cheque books. Everything you need to know about cts 2010 cheques banking. Cts2010 standard cheques free book on indian stock market. Banks have been advised not to charge their savings bank account customers for issuance of.
This prohibition is applicable to cheques cleared under the image based cheque truncation system cts only. Simple guide for customers to identify if their cheques are cts. As per the negotiable instruments act, every cheque is required to be presented to the drawee paying bank for payment. As per rbi guidelines, now all banks have to issue cheques conforming to the cts 2010 standards with uniform features. Annexure x a rbi circular on non cts 2010 instrument 51 51 annexure x b non cts clearing timings 51 51. Based on the progress made by banks in compliance to cts scheme, on july 16 th 20, rbi has extended the use of old noncts cheque up to december, 20. As per rbi directives, periodicity for processing noncts cheques in cts. Rbi had asked banks to replace noncts 2010 compliant cheque books, but most banks are understood to be going slow. All cheques issued by banks including dds pos issued by banks with effect from the date of this circular shall necessarily conform to cts2010 standard. In case your cheque is not cts2010 compliant, you can request for a new cheque book by logging in to citibank online. Cts2010 cheques have certain common security features and standardised field placements for enabling image based processing of.
The cheque truncation system cts is a process of stopping flow of physical cheque in which an electronic image of the instrument is presented when it comes. Also already circulated cheques will be replaced within 31st december 2012. What are the precautions required to be taken by the banks customers to avoid frauds. Bank customers rbi new guidelines 2019 non cts cheques. Its all about cts 2010 new cheque truncation system. Worth mentioning here is that most banks have already stopped clearing noncts cheques since january 1, 2019. Rbi has been taking steps to make cheque transactions smoother and faster. Instruments not complying with cts2010 standards will be cleared once a month second wednesday of the month from september 1, 2018. Following are the points to be remembered while shifting to the cheque truncation system. Indian banks will only accept cheque truncation system cts 2010 complaint cheques after 31 july 20 as per the latest rbi circular issued today which extends the last call given. Procedural guideline for cheque truncation system jul 27, 2018 chennai bankers clearing house cbch procedural guidelines for cheque truncation system cts version 2.
If your cheque book is issued prior to august 2011, you are requested to indent for a new cheque book to avoid any inconvenience. Under the banking tab, click on the link other banking services request cheque book. Therefore, we recommend you to replace your noncts2010 cheque book with a new cheque book. Get ready to order new india cheque books times of. The reserve bank of india rbi in its statement on developmental and regulatory policies issued today has informed that the cheque truncation system cts, which is currently operational at the. As per rbi guidelines, after july 31, 20, noncts2010 standard compliant cheques will still be accepted for clearing but will be cleared at less frequent intervals. Cheque truncation system cts is a cheque clearing system undertaken by reserve bank of india rbi that aims at reducing the time involved in cheque clearing to one day. Cheque truncation system cts cheque printing software.
Your old cheque leaves may not be valid after march 31, 20, as the rbi has instructed all banks to implement the cheque truncation system cts across the. The timeline has been extended mnay times from 31mar20 to 31jul20 to 31dec20. Rbi guidelines on cheque books compliant with cheque. As per rbi guidelines, noncts2010 standard compliant cheques will be accepted for clearing up to july 31, 20. Identify whether your existing citibank account cheque book is cts2010 compliant request for a new cheque book, if required also, please note that rbi has advised all banks holding postdated emi cheques to arrange for replacement of noncts2010 standard cheques with cts2010 standard cheques. Annexure xa rbi circular on noncts 2010 instrument 51 51.
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