Standardization and Enhancement of Security
Features in Cheque Forms/Migrating to CTS 2010 standards
a. All cheques issued by banks (including DDs / POs issued by banks)
with effect from the date of this circular shall necessarily conform to
CTS-2010 standard.
b. Banks shall not charge their savings bank account customers for
issuance of CTS-2010 standard cheques when they are issued for the first
time. However, banks may continue to follow their existing policy
regarding cheque book issuance for additional issuance of
cheques, in adherence to their accepted Fair Practices Code.
c. All residual non-CTS-2010 cheques with customers will continue to be
valid and accepted in all
clearing houses [including the Cheque Truncation System (CTS) centers]
for another four months up to July 31, 2013, subject to a review in June
2013.
d. Cheque issuing banks shall make all efforts to withdraw the
non-CTS-2010 Standard cheques in circulation before the extended
timeline of July 31, 2013 by creating awareness among customers through
SMS alerts, letters, display boards in branches/ATMs, log-on message in
internet banking, notification on the web-site etc.
e. A progress report in this regard to be submitted to this department
in the format prescribed in the annex, enabling monitoring of the
progress made by banks in respect of migration to CTS-2010 standard
cheques.
f. In addition, the bank-wise volume of inward clearing instruments
processed in the Cheque Processing Centers will be monitored with
respect to the CTS-2010 / non-CTS-2010 standard cheques presented on
them.
g. No fresh Post Dated Cheques (PDC)/Equated Monthly Installment (EMI)
cheques (either in old
format or new CTS-2010 format) shall be accepted by lending banks in
locations where the facility of ECS/RECS (Debit) is available. Lending
banks shall make all efforts to convert existing PDCs in such locations
into ECS/RECS (Debit) by obtaining fresh mandates from the borrowers.
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