Cts is the abbreviated form of cheque truncation system. In case if your cts 2010 cheque book, you must obtain a new cts complied cheque book, and surrender the non compliant one to the bank. Mr,x having non cts cheque now he is blackmailing more money after paid more also. Dec 04, 2017 meaning of cheque different types of cheque. Request you to make a note that non cts compliant cheques would not be accepted by banks for clearing post 31 july 20. When a cheque is not crossed, it is known as an open cheque or an uncrossed cheque. As per guidelines, non cts 2010 cheques issued by bank in india will be withdrawn from circulation by march 31, 20. Instead of this an electronic image of the cheque is transferred with vital essential data. You need to apply in your bank for the same and it is available free of cost. What should i do if i receive a non cts compliant cheque.
These cheques may be cashed at any bank and the payment of these cheques can be obtained at the counter of the. As per rbi guidelines, non cts 2010 standard compliant cheques will be accepted for clearing up to july 31, 20. Noncts cheques to become invalid from january 1 goodreturns. The reserve bank of india rbi on monday said customer cheques which are still not compliant to the new electronic cheque truncation system cts will continue to be valid and accepted in. Also already circulated cheques will be replaced within 31st december 2012. Non cts cheque bounce and validity in 2016 lawrato.
Speed clearing system is applicable for both cts2010 grid based clearing system and noncts clearing system. What is a cheque definition, types of cheques and features. Sep 03, 2012 it is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. Jan 08, 2017 this video explains the validity period of cheque and amount of cheque. Those who have given non cts 2010 cheques for paying their car or home loan emis must resubmit cts 2010 standards cheques before the above mentioned date or switch to electronic clearing systemecs. If you are still in possession of nonctc cheque books, then it is in your own interest to get those replaced with cts2010 standard cheque books latest by december 31. Noncts cheques used by customers of all banks including state bank of india sbi, hdfc bank, icici bank, bank of baroda, punjab national bank and others will become invalid from january 1. Rbi had ordered banks to halt using noncts cheque from 2019. Sep 14, 2015 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. Cheque is a negotiable instrument used to make payment in day to day business transaction minimizing the risk and possibility of loss. If a cheque bears a date earlier than the date on which it is presented to the bank, it is called as antidated cheque. Chequebook meaning in the cambridge english dictionary. As per the revised guidelines of rbi the validity of noncts compliant cheques have been extended till 31st a july 20.
Dec 16, 2012 go to your bank branch and request for a new cheque book or order one online. If you are still in possession of nonctc cheque books, then it is in your own interest to get those replaced with cts2010 standard cheque. Noncts cheques may face further clearance delay from may. Many banks have still not asked their customers to surrender the noncts 2010 cheque books to reflect the change, a crosssection of bankers. Simply put, a cts2010 cheque will not have to go through the process of. After migration of the entire cheque volume from micr system to cts, the traditional micrbased cheque processing has been discontinued across the country. Cheque book definition and meaning collins english dictionary.
Thus, it is considered as the major landmark in the indian banking industry. A folder or booklet containing preprinted cheques for use by the holder of a bank account. Check your current cheque book is it valid new cts. Every account holder must deposit their noncts cheques and cheque books in their respective. You can also request for a new cheque book through dbs atm or internet banking. Definition of a cheque as per the national provincial bank circa 1968 was an unconditional order in writing drawn on a banker, signed by the drawer, instructing the banker to pay on demand a sum certain in money to or to the order of a specified person or to bearer and which does not order any act to be done in addition to the payment of money. No non cts 2010 cheques will be encashed after this date. Cts has been implemented in new delhi, chennai and mumbai with effect from february 1, 2008, september 24, 2011 and april 27, 20 respectively. In case if your cheque book does not reflect the aforementioned details you must obtain a new cts complied cheque book at the earliest, and surrender the non compliant one to the bank. December 31st is the last day of using non cts cheques for account holders of all banks including sbi state bank of india, hdfc, punjab national bank, icici, bank. Frequently asked questions on cheque usage posb bank. Therefore, we recommend you to replace your non cts 2010 cheque book with a new cheque book at the earliest. So, the validity of non cts cheques is again extended, this time upto 30th april 2014. Jan 15, 2014 non cts compliant cheques cheques not compliant to the cheque truncation systemcts 2010 standards will be cleared thrice a week only, until 30 april, 2014.
I had to give the first page of my old cheque book and they took my request. Request you to make a note that noncts compliant cheques would not be accepted by banks for clearing post 31 july 20. Here it seems you are asking about a cheque which is signed but not dated and no other details are filled in. Ensure that your full name, date, amount in words and figure which tally and issuers signature are. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. 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. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. All banks that issue sgd cheques and local usd cheques are on cts. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. If you have availed a home loan and or auto loan and issued postdated cheques instead of opting for direct debit, then you will be required to replace such. The person writing the cheque, known as the drawer, has a transaction banking account often called a current, cheque, chequing or checking account where their money is held. If you havent switched to cts cheques, you have 4 more months.
However, there may be situations when the drawer of a cheque limits the cheque validity period to less than six 6 months. After six months or when the cheque expires, you will not be able to cash your cheque successfully. 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. No longer will you be able to use noncts cheques and sbi. In case your cheque is not cts2010 compliant, you can request for a new cheque book by logging in to citibank online. Noncts2010 complaint cheques valid up to jul20how does. For example, cheques of all banks would have the watermark at the.
The cheque truncation system cts is a process of stopping flow of physical. Cheque issuing banks shall make all efforts to withdraw the noncts2010 standard cheques in circulation before the extended timeline of 31 july 20 by creating awareness among customers through sms alerts, letters, display boards in branchesatms, logon message in internet banking, notification on the website etc, rbi said. Oct 17, 2017 no any cheque that is a non cts cheque will be returned by the bank as not a valid instrument under ni act. Customers are requested to ensure that in case of post dated cheques pdc issued to any officeservice vendorbanks from the dbs india cheque book issued as. Noncts compliant cheques shall not be processed for clearing with effect from january 1, 2019, the pnb said in a notification.
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. After migration of the entire cheque volume from micr system to cts, the traditional micrbased cheque. Mar 20, 20 all residual noncts2010 cheques with customers will continue to be valid and accepted in all clearing houses including the cheque truncation system cts centres for another four months up. However, account holders can instruct the bank to shorten or lengthen the cheques expiry and actual the duration for the cheques validity will be printed on the cheque itself. However they can be used to withdraw cash or transfer funds within the same bank. 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. Get your noncts cheque book replaced immediately, it said. Noncts cheques were meant to be discontinued from use throughout the country from 31 july 20. Punjab national bank pnb has asked its customers to get their noncts compliant cheques replaced as these instruments will not be accepted for clearance in the banking system from january.
If you have availed a home or auto loan and issued postdated. Noncts compliant cheques, drafts still in circulation the. What should i do if i receive a non ctscompliant cheque. Please look for the letters cts2010 printed perpendicularly on the cheque leaf near the perforation on the left side as shown in the image. Noncts compliant cheques, drafts still in circulation. What is bearer cheque, order cheque, crossed cheque, open. Speed clearing system is applicable for both cts 2010 grid based clearing system and non cts clearing system. Nov 29, 2012 identify whether your existing citibank account cheque book is cts2010 compliant request for a new cheque book, if required also, please note that rbi has advised all banks holding postdated emi cheques to arrange for replacement of noncts2010 standard cheques with cts2010 standard cheques.
Cheque book definition and meaning collins english. A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payees account. You will need to provide your full name as per banks records, your bank account number and your contact number at the back of the cheque before depositing it at our quick cheque facilities. If the above letters are present, your cheque book is cts2010 compliant 5. If you are still in use of nonctc cheque books, then it is in your own. No clearance of noncts compliant cheques from january.
The truncated cheque means, a cheque which is truncated during the. Cheque book definition of cheque book by the free dictionary. Non cts cheque bounce and validity in 2016 answered by expert cheque bounce lawyer. In case if your cheque book does not reflect the aforementioned details you must obtain a new cts complied cheque book at the earliest, and surrender the noncompliant one to the bank. Cheque truncation system cts is a cheque clearing system undertaken by reserve bank of india rbi that aims at reducing the time involved in cheque clearing to one day. For the past 6 months, rbi has been announcing several times saying non cts 2010 compliant cheques would be valid up to specific period. Non cts compliant cheques cheques not compliant to the cheque truncation systemcts 2010 standards will be cleared thrice a week only, until 30 april, 2014. It is illegal to issue a blank or post dated cheque. Deadline ends, old cheques make way for safe, fast cts. As per an old rbi rule, noncts cheques will be invalid after january 1st, 2019.
Rbi guidelines on standardization of security features for cheque leaves, referred to as cts2010 are aimed at enhancing customer safety and facilitating easier processing of cheques. 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. Nov 16, 2017 request new cheque book by december 31, 2017 account holders of the erstwhile associate banks can now apply for new cheque books till december 31, 2017, which in effect means that the old cheque. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for quicker cheque clearance.
Cheque frauds can be greatly reduced with introduction of minimum security features prescribed under cts standards 2010, such as embedded verifiable features such as barcodes, encrypted codes. Nov, 2014 enquiries reveal that issue of non cts cheque truncation system compliant demand drafts by banks pose a lot of hardship, especially delay in encashment of the instrument. Sbi customers can deposit their noncts cheque in their respective branch and get free new cts2010 standard chequebook. The cts system will take transactions online, with the bank where a deposit is made scanning cheque image data and making an instant electronic transmission of the money to the recipient.
Many banks have still not asked their customers to surrender the non cts 2010 cheque books to reflect the change, a crosssection. Noncts cheques may face further clearance delay from may 1. Cheque books of these banks valid only till december 31. The spellings check, checque, and cheque were used interchangeably from the 17th century until the 20th century. You should ask for a new cts compliant cheque from the drawer. A cheque is defined as bill of exchange payment on demand. As per guidelines, non cts2010 cheques issued by bank in india will be withdrawn from circulation by march 31, 20. It is used by individuals, businesses, corporate and others to transact for making and receiving payment.
For such case, the validity period will be clearly printed on the face of the cheque. So it is necessary for all to understand how your new cheque format looks like. Cheque book synonyms, cheque book pronunciation, cheque book translation, english dictionary definition of cheque book. However, since the 19th century, the spelling cheque from the french word cheque has become standard for the financial instrument in the commonwealth and ireland, while check is used only for other meanings, thus distinguishing the.
Such a cheque is valid upto three months from the date of the cheque. What are the details i need to provide on the cheque to deposit. Jun 25, 20 non cts 2010 complaint cheques valid up to jul20how does this impact you. 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. International helpline 91446685 4555 or your relationship manager to request for a new cheque book. A cheque book is a book of cheques which your bank gives you so that you can pay for. Cheque truncation system cts cheque printing software. Fintotal news analysis noncts2010 cheques will take. Banks have been asked to ensure all cheques are compliant with cts2010 standards by april 1, 20. 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. You should ask for a new ctscompliant cheque from the drawer. Though banks have started issuing new cts2010 based cheque books to customers, a large number of noncts2010 standard cheques are still being used. Apr 29, 2014 non cts cheques may face further clearance delay from may 1. The cheque truncation system cts is an online imagebased cheque clearing system implemented on 12 july 2003.
823 144 1285 728 894 1042 838 310 28 1374 696 1356 705 588 53 624 1323 224 705 296 769 283 1406 1327 23 951 1467 915 905 1190 446 1081 522 196 496 82 350 186 613