Cheque truncation means stopping the flow of the physical cheques issued by a. If the letters cts 2010 are present here, your cheque book is cts 2010 standard compliant. If you have ordered your cheque books recently, say, a month ago, you may already have the new cheque leaves with you. Cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india. All chequebooks issued by the bank after aug 2011 are cts 2010 compliant. Sbi, hdfc, pnb, icici, bob, other bank customers these to become invalid non cts cheques used by customers of all banks including state bank of india sbi, hdfc bank, icici bank, bank of baroda, punjab national. Cts2010 compliant cheque will have the printer details along with the text cts2010 printed on the extreme left hand of the cheque leaf. Everything you need to know about cts 2010 cheques banking. Non cts compliant cheques shall not be processed for clearing with effect from january 1, 2019, pnb said in a notification.
Cts best practice guidelines cts best practice guidelines. So, better not to waste much time and get your new cheque books. All banks providing cheque facility to their customers have been advised to issue only cts 2010 standard cheques. To help you identify whether the cheque book you currently hold is cts compliant or not, you can look for the following features. You need to apply in your bank for the same and it is available free of cost. 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. What is cheque standardisation and what does cts 2010 standard mean. Words cts 2010 printed on the left hand side of the cheque leaf near perforation. The deadline for the withdrawal of non cts 2010 standard cheques is july 31, 20 and banks have begun to issue fresh cheques in the cts 2010 complaint format. All the cts2010 cheque should be clean, image friendly and over writing is not accepted because the cheque will be cleared through image based clearing system. 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. Cts, an online image based clearing system for faster clearing of cheques in india.
Also already circulated cheques will be replaced within 31st december 2012. In the year 2010, rbi came up with the guidelines for cheque truncation system. Cts 2010 the banks would need to upgrade a few things to comply with cts 2010 standards of rbi. 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 cheque truncation system. If your cheque book is issued prior to august 2011, you are requested to indent for a new cheque book to avoid any inconvenience. Only cts 2010 standard cheque books are to be used after. So it is necessary for all to understand how your new. If you are still in possession of nonctc cheque books, then it is in your own. What does cts 2010 noncompliant cheque mean in icici. 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. More people are using electronic means to send money and pay for. How to identify my cheque book cts2010 standard compliant.
Rbi guidelines on standardization of security features for cheque leaves, referred to as cts2010 are aimed at enhancing customer safety and facilitating easier. When ch is presented for clearing the cheque is to be authorised by the paying banker. Check your current cheque book is it valid new cts. Of late you must have noticed advertisements in newspapers put up by banks urging account holders to stop circulating non cts compliant cheques and replace their old cheque books with new cts.
Indian bank charges rupees thirty for one cts2010 cheque book, from customers. 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. All the cts 2010 cheque should be clean, image friendly and over writing is not accepted because the cheque will be cleared through image based clearing system. Everything you need to know about cts 2010 cheques banking basics hdfc bank. Unless most means 95% or more, i suspect that the sheer volumes. We would like to inform you that we have been issuing cts 2010 compliant cheque books since april 2011. Rbi extends cheque upgradation deadline till march next year 14 dec, 2012, 01. All new cheques complying with the cts2010 standard are set to. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. Get your non cts cheque book replaced immediately, it said. This standardization also helps the cts system in easier image processing.
It is not applicable to cheques cleared under other clearing arrangements for the present. Procedural guidelines for cheque truncation system cts. Coming back to cts 2010, i took the time off to get hold of the new cheque books from all my banks and thought that that was all there was to the imminent cutover to cts 2010. Many banks have still not asked their customers to surrender the non cts 2010 cheque books to reflect the change, a crosssection. Its mentioned on the side line of the cheque as cts 2010 to identify whether its cts 2010 standards or not. The benchmark prescriptions are collectively known as cts 2010 standard. This means the older noncts 2010 cheques will continue to be valid till march 20. Cheque book issued till 04 november 2012 is non cts compliant is my cheque cts compliant. It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for quicker cheque clearance. Cheque truncation system cts explained bankexamstoday. 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. Sep 05, 2018 cheque truncation system reserve bank of india.
Hence, the existing clearing arrangements will continue till december 31, 20. My cheque book is not cts2010 compliant, what to do. Noncts cheques may face further clearance delay from may. The number 2010 in cts 2010 is because the guidelines for cts came up in the year 2010. The introduction of new cheque standards cts 2010 was warranted on account of several developments in the cheque clearing viz. 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. An instrument may not be honoured owing to a single reason or due to multiple reasons. Cheque truncation system new benchmark for cheques in banks. Physical cheque wont be available for the paying bank branc.
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. If these features are present in your cheque book, it is a cts compliant one. Most banks are now issuing cts cheque truncation system 2010 cheque books only and are collecting unused cheque leaves of the non cts 2010 cheque books. Customers should get their old cheque books replaced with new ones conforming to cts2010. In case if your cts 2010 cheque book, you must obtain a new cts complied cheque book, and surrender the. Cheque books not containing cts2010 cheque leafs are called noncts. Cheque book issued prior to december 2010 is non cts compliant savings treasure accounts. Only image of the cheque will be available for the payin. Cheques not complying with cts 2010 standards will be cleared at less frequent intervals i. The branch address and ifsc code should be on the top left side of the cheque 2. In its place an electronic image of the cheque is transmitted to the paying branch. Know your new ctc 2010 standard bank cheque format it is now mandatory for banks to strictly issue standardized and enhanced new format of cheques called cts 2010.
How cts 2010 cheque is different cts 2010 mark up on the vertical side line as. New cts cheque contains information of printer where they are printed along the words cts 2010 mentioned along the area where we tear off the leaf from the cheque book. These cheques have cts 2010 printed near the left margin. Cts 2010 standard cheques will have letters cts 2010 printed vertically on the cheque leaf near the perforation on the left side as shown in the image below. Incase the cheque book you currently have is not cts 2010 compliant as per the above features we request you to immediately order a new cheque book. 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. Cheque truncation system cts or imagebased clearing system ics.
This would help banks in identifying and controlling fraudulent alterations. Indian customers using cheques that are not compliant with cheque truncation system cts, an online image based cheque clearing facility, will face delay in. Cts best practice guidelines national payments corporation of india 2. Cts 2010 new cheque truncation system wef 1st april 20. Non cts cheque book issue bank can payment non cts cheque. Cheque truncation system reduces the scope for clearingrelated frauds. When a customer deposits a cts 2010 complied cheque, the bank can simply send the cheque s image to the drawee bank, whose cheque has been issued. No clearance of noncts compliant cheques from january. Instead of this an electronic image of the cheque is transferred with vital essential data.
One can find this symbol where we write amount in figures. So it is necessary for all to understand how your new cheque format looks like. For the uninitiated, cts transforms cheque clearing from a paperintensive to a digital process whereby only images of cheques move between the payer. Cts 2010 standard cheques will be cleared on all working days. Non cts cheques may face further clearance delay from may 1.
This prohibition is applicable to cheques cleared under the image based cheque truncation system cts only and is effective from december 1, 2010. 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. Cts 2010 compliant cheque means, the cheque adheres to the cheque truncation system which started in 2010 in india, as per the guidelines of rbi. The number 2010 in cts2010 is because the guidelines for cts came up in the year 2010. Banks shall not charge their savings bank account customers for issuance of cts 2010 standard cheques when they are issued for the first time. View image above if your cheque is not of cts 2010 standards then you need to apply for new cheque book of this standard and surrender the older cheques. If you are still in possession 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. Everything you need to know about cts 2010 cheques. The new cts standard enables banks to convey the cheque as an image to the clearing house rather than in its physical form.