Cheque issuing banks shall make all efforts to withdraw the noncts2010 standard cheques in circulation before the extended timeline of 31 july. In the year 2010, rbi came up with the guidelines for cheque truncation system. A reproduction of the sample cheque available on rbis website. Important message cts 2010 regulation applicable to cts. This means your cheque will not travel physically from one location to another, but an electronic image will be transferred for the bank where the cheque is deposited to the drawee bank. This means for any change in the payees name, amount in figures or. Enhancement of security features in cheque forms migrating to cts 2010 standards as covered in annex xa and other circulars from time to time. Cheque book can be requested for any of your savings, current, cash credit, and over draft accounts. Cheque truncation system new benchmark for cheques in banks.
Rbi extends deadline for withdrawing noncts 2010 cheques. Non cts cheque book will not accept, sbi cheque book rule. Mar 18, 20 cheque issuing banks shall make all efforts to withdraw the non cts 2010 standard cheques in circulation before the extended timeline of july 31, 20 by creating awareness among customers through sms alerts, letters, display boards in branchesatms, logon message in internet banking, notification on the website etc. Cheque truncation system, abbreviated as cts, is nothing but an electronic verification procedure using imagebased processing. Mar 28, 2018 april 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. The list of reasons, for which a cheque could be returned unpaid by a bank, is given below this list is only illustrative and not exhaustive. I fail to understand sbis motive to earn from such mode, from the general. A copy of cheque, cts 2010 compliant may please be used in explaining the requirements to be filled for the cheque leaves that can be used for transaction from january 01, 20 onwards. Cheque truncation system cts 2010 standards bankbazaar. What is a cheque definition, types of cheques and features. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for quicker cheque clearance. If you are an account holder of sbi s erstwhile six associate banks including bharatiya mahila bank, your cheque books will become invalid from december 31.
Or alternately, select the cheque range option to verify status for a range of cheques. Ifsc and bank address is printed on the top of the cheque. Cheque truncation means stopping the flow of the physical cheques issued by a. If the cheque book is not with cts 2010 cheque leafs, they are referred to as non cts cheque books. Check your current cheque book is it valid new cts. Can i deposit a non cts cheque in a home branch for clearing. It is used by individuals, businesses, corporate and others to transact for making and receiving payment. You can either collect it from branch or request your branch to send it by post or courier. All the 14 lcpcs are printing and issuing mccs in respect of branches linked to them. 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.
And you must do it latest by december 31, 2018, if you dont want your cheques to. Cheque truncation system change looks good goodmoneying. Cheque return policy the main objective of cheque return policy is to identify the situations under which an instrument presented by the presenting bank, in either cts or micr clearing, is returned. This means that there will be no physical movement of the cheque but rather an. Therefore, we recommend you to place a request for a new cheque book.
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. Everything you need to know about cts 2010 cheques banking. Cts 2010 the banks would need to upgrade a few things to comply with cts 2010 standards of rbi. Many banks have still not asked their customers to surrender the non cts 2010 cheque books to reflect the change, a crosssection of bankers told this correspondent, adding the purpose of the. It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. Sbi customers can deposit their noncts cheque in their respective branch and get free new cts2010 standard chequebook. Jan 12, 20 8 boxes to write the date in ddmmyyy format. When a cheque is not crossed, it is known as an open cheque or an uncrossed cheque. An instrument may not be honoured owing to a single reason or due to multiple reasons.
The cheque truncation system cts is a process of stopping flow of physical cheque in which an electronic image of the instrument is. Dec 19, 2018 sbi notice the state bank of india, for instance, has put a notice on its website which says, as per rbi directives, periodicity for processing noncts cheques in cts clearing has been. Cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india. Rbi has issued a circular telling all banks that they should only process and accept those cheques which follow cts guidelines what is cheque truncation system or cts.
Just check, whether your existing cheque book is cts compliant or you need to get a new cts complaint cheque book issued before 31st december 2012. The deadline for new cheques under the cheque truncation system cts 2010 has been extended till 31 march 20 by the rbi. Name of the printer with cts 2010 is printed on the left side of the cheque. Noncts cheques may face further clearance delay from may 1. Sbi to send new cheque books by dec 15, update your address after announcing the implementation of cheque truncation system cts, the state bank of india sbi has asked its customers to update. Cheque book issued prior to december 2010 is noncts compliant. Sbi customers can deposit their non cts cheque in their respective branch and get free new cts 2010 standard chequebook. Procedural guidelines for cheque truncation system cts.
Cheques with alterationcorrections will not be honoured from. There is a new standard in banking called as cheque truncation system or cts 2010, which all the banks have to follow now. It is our intention that the revised cheque standard is implemented by banks before the rollout of cts at chennai. Cheque truncation system reduces the scope for clearingrelated frauds. Cts 2010 standard cheques will be cleared on all working days. Non cts compliant cheques shall not be processed for clearing with effect from january 1, 2019, pnb said in a notification. You need to apply in your bank for the same and it is available free of cost. Sep 03, 2012 it is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. It further said since such cheques payable at par are cleared as local cheques in clearing houses, customers should not be levied extra charges.
Get your non cts cheque book replaced immediately, it said. A pantograph showing voidcopy while photocopying a cheque under the account number. Punjab national bank pnb has asked its customers to get their non cts compliant cheques replaced as these instruments will not be accepted for clearance in the banking system from january. All cbs enabled banks are hereby advised to issue only payable at par multicity cts 2010 standard cheques to all eligible customers, rbi said in a notification today. Jan 26, 2018 it is called cheque authorisation system. Also already circulated cheques will be replaced within 31st december 2012. Jan 08, 2015 however some of the features of cts cheques are cheque printer details. 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. A majority of banks, including sbi and pnb, have already informed their. New cts cheque contains information of printer where they are printed along the words cts2010 mentioned along the area where we tear off the leaf from the cheque book.
In case if your cts 2010 cheque book, you must obtain a new cts complied cheque book, and surrender the noncompliant one to the bank. As per rbi guidelines, after march 31, 20, non cts 2010 standard compliant cheques will still be accepted for clearing but will be cleared at less frequent intervals. When a customer deposits a cts2010complied cheque, the bank can. Simple guide for customers to identify if their cheques are cts. 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. 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. Any such phone call smses emails asking you to reveal credential or one time password through sms could be attempt to withdraw money from your account. 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.
People who fail to get their old cheques replaced by december 31, 2018, wouldnt be able to get their cheques cleared as separate fortnightly clearing for non cts cheques would be discontinued after december 31, 2018, as mandated by the rbi. The word cts 2010 must be printed on the left hand side of the cheque near perforation. You can opt for cheque books with 25, 50 or 100 cheque leaves. If your cheque book is issued prior to august 2011, you are requested to indent for a new cheque book to avoid any inconvenience. Sbi is issuing new cheque books which conform to the standards of cts 2010 cheque truncation system to all its customers. Sep 03, 20 cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india. Related news best investment option during covid19. The number of cheque leaves in the multi city payable at par cts 2010 standard cheque books will be as under. All chequebooks issued by the bank after aug 2011 are cts 2010 compliant. If you have ordered your cheque books recently, say, a month ago, you may already have the new cheque leaves with you. If you are still in use of nonctc cheque books, then it is in your own interest to get those replaced with cts 2010 standard cheque books latest by december 31. Instead, an electronic image of the cheque will be sent to paying branch through the clearing house along with relevant information like data on the micr band, date of presentation. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise.
As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. Cheque book issued prior to december 2010 is non cts compliant. Cbs enabled banks should issue only payable at par cheques. All banks providing cheque facility to their customers have been advised to issue only cts 2010 standard cheques. Complete list of reasons for which a cheque can be. Noncts cheques valid till 31 july rbi india infoline. The move to replace cheques with instruments that meet the new cheque cts. Sbi to send new cheque books by dec 15, update your address. No clearance of noncts compliant cheques from january. If you have availed a home or auto loan and issued postdated.
International helpline 91446685 4555 or your relationship manager to request for a new cheque book. So, better not to waste much time and get your new cheque books. Android hindi news app, ios hindi news app amarujala hindi news app. This eliminates the cost of movement of physical cheques and reduces the time for clearance for better delivery of services to customers. Similarly, in september this year, punjab national bank pnb had asked its. Cheque truncation system cts is the system in which the flow of physical movement of the cheque will be eliminated in the cheque clearing process. Indian bank charges rupees thirty for one cts2010 cheque book, from customers. State bank of india never ask for your user id password pin no. In an official notice on its website, hdfc bank says separate sessions for clearing of noncts cheque will be discontinued from december 31. Can you please mail me a scanned copy of the latest cheque leaf that is compliant with cts 2010. However some of the features of cts cheques are cheque printer details.
Cheque clearing or check clearing in american english or bank clearance is the process of moving cash or its equivalent from the bank on which a cheque is drawn to the bank in which it was deposited, usually accompanied by the movement of the cheque to the paying bank, either in the traditional physical paper form or digitally under a. Effective date of implementation of the standard will be advised to you in due course. Ecs electronic clearing service its meaning, types. Customers should make note of the above guideline while depositing the cheque as the noncts 2010 instruments will be credited debited to accounts as per the schedule mentioned above. Cheques not complying with cts 2010 standards will be cleared at less frequent intervals i. The benchmark prescriptions are collectively known as cts 2010 standard.
When ch is presented for clearing the cheque is to be authorised by the paying banker. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. In the cheque status display page that appears you can verify the status of the cheques as shown in the figure 2. Dec 20, 2014 first, very soon the banking system will fully adopt the cheque truncation system cts 2010 standards. The branch address and ifsc code should be on the top left side of the cheque 2. The various new features present on a cts 2010 cheque are. Cheque is a negotiable instrument used to make payment in day to day business transaction minimizing the risk and possibility of loss. You can opt to get the cheque book delivered at your registered address or you can provide. Request you to make a note that non cts compliant cheques would not be accepted by banks for clearing post 31 july 20.
You can also request for a new cheque book through dbs atm or internet banking. So it is necessary for all to understand how your new cheque format looks like. 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. Mar 20, 20 non cts cheques valid till 31 july rbi the rbi has also said the system of post dated cheques and payment via emi, in either the old or new format, will be banned from now wherever electronic. Only cts 2010 standard cheque books are to be used after. Sbi is arranging to send these new series of cheque books to its customers at. Feb 27, 2019 people who fail to get their old cheques replaced by december 31, 2018, wouldnt be able to get their cheques cleared as separate fortnightly clearing for non cts cheques would be discontinued after december 31, 2018, as mandated by the rbi. Reason for return 0103 funds 01 funds insufficient 02 exceeds arrangement 03. Many banks have still not asked their customers to surrender the non cts 2010 cheque books to reflect the change, a crosssection of. Noncts cheques may face further clearance delay from may. The benchmark prescriptions shall be known as cts2010 standard, specifications of which are annexed.
Chequeman cheque printing software with free trial. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for faster clearing of cheques. Printing of mccs is now fully in conformity with cts 2010 standards. One can find this symbol where we write amount in figures. Physical cheque wont be available for the paying bank branc. If you are still in use of nonctc cheque books, then it is in your own interest to get those.
This system is followed for clearing cheques in an errorfree, fast and hasslefree manner. 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 for clearing. It might happen that your cheque s start bouncing and do not get accepted from jan 1, 20. It has issued a public notice saying that starting january 1, 20, bank will not accept cheques that do not conform to the new standards. Instead of this an electronic image of the cheque is transferred with vital essential data. Cheque books not containing cts2010 cheque leafs are called.