Is your Indian cheque book future ready (CTS-2010) ?
It does not matter whom you are banking with India. Your check book looks to be different very soon. To reduce the tax processing time drastically, RBI has recommended uniform look for all check books to enable automated processing checks. This standard is called CTS-2010. This is coming to effect from Jan 1, 2013. Latest news says this has been delayed by 3 more months to give more time for rural banks to catch up.
At present, all Inter Bank physical cheques are sent by Collecting Banker to the Payee Banker for realization. In line with the growing use of technology for speedier realization & reduction of movement of physical cheques, RBI has recently taken a number of initiatives e.g. RTGS/NEFT, clearing of cheques through Truncation based on Scanned Images etc.
Accordingly, RBI has recently legalized the truncation of cheques. Truncation of cheques is the process that stops the flow of any physical cheque from the Collecting Bank to the Payee Bank. In its place, an electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with relevant details like data on the MICR band, date of presentation, presenting bank, etc.
In view of the above, with effect from 01.01.2013 Banks will not be accepting Non – CTS 2010 standard cheques. Hence, in order to comply with the same, Investments with Non – CTS 2010 Standard cheques will not be accepted from 28.12.2012 ( 29.12.2012 & 30.12.2012 being Saturday & Sunday) onwards as the same will not be accepted by the clearing house/ payee banker w.e.f 01.01.2013 unless any extension is granted by RBI in the meantime. We, therefore, request you to kindly visit your Bank and collect new CTS-2010 Standard cheques for a smooth banking activity.