Information About New CTS Cheque System In India

We are so familiar with the banks and its process. In this process “Cheque” is also an important element to support this process. Now 2013 has brought one good new for all the customers. Cheque clearing process is now become short and fast. It does not have any time consuming and lengthy process.

All commercialized and corporate banks are introducing new cheque series. Up to 31^st Dec 2012, all banks must issue new cheque books which are examined by CTS (Cheque Truncation System). All banks must cancel old means existing cheque books. Customers also should aware regarding this.

Customers have to switch new cheques with standard features up to 31^st Dec 2012. you have to cancel old cheques if these are issued for any home, car or Education lone. Banks will not charge any charges for new cheque leaves.

This CTS system will help to clear the cheques more effectively and secured. No need to worry about approaching CTS cheques execution. Both types of cheques will be accepted during some transitory period i.e. from 1^st Jan to 31^st Mar. all the banks are sending messages to customers to realize the urgency and to act upon it.      

If you have applied for cheque leaves before a month than you should have a new CTS compliant cheque leaves. If you have received cheques before 2-3 months ago then you need to check a status.

Following are the features for mew CTS cheque:

• There is a new symbol of rupees inserted near the numerical amount column.
•  “Please Sign Above” is written on the cheque at the bottom right side.
• Wave like design is embossed on the left hand side of cheque.

 Procedure to replace old cheque books:

• You can receive new CTS cheques by registered post and cancel old ones. Banks can ask for proof of cancellation.
• You can visit your branch and submit old cheques and receive new CTS cheques without any fee.

 Post – Dated cheques issuing for EMI:

An RBI guideline has informed NBFC that if they have accepted any old cheques for any EMI future payment then they should replace with CTS- 2010 compliant cheque. Most of the customers are using ECS (Electronic Clearing System) hence new CTS system will not be affect this ECS system.

Small borrowers can pay their EMI’s through older cheques. Most of co-operative banks have stick a notice regarding this in ATM centers but need to take practical action on this. Banks must issue new CTS cheque leaves to customers as well as customers also should aware of this.

Hope this CTS system will change our banking process effectively. Cheque clearing process will work faster and within lesser time.