WHY YOU NEED CTS CHEQUES
Posted: February 15th, 2013, 2:03 pmFrom April 1, 2013, your cheque book will become invalid if it is not CTS 2010-enabled.
The reasons are as follows:
WHAT IS CTS-2010 ?
CTS 2010 is a cheque truncation system, an image based method for faster clearing of cheques. Truncation means conversion of a physical cheque into its electronic form. The new system, which will come into force from April 1, 2013, in India, will eliminate the current practice of physical presentation of cheques and save processing costs. Banks will send the scanned cheque image to the paying bank and clearance may happen the same day. Therefore, issuer of the cheque will receive the payments much faster.
WHAT ARE THE FEATURES OF CTS CHEQUES ?
A CTS cheque bears the words CTS 2010 near the left margin of the leaf and please sign above this line at bottom right. These cheques have a watermark, "CTS INDIA" which can be seen against light. The bank logo and details are rendered in ultraviolet (UV) ink at top left of the cheque leaf and will be visible only under UV scanners. IFSC and MICR codes are also be printed on the CTS cheques.
HOW SAFE IS THE NEW SYSTEM ?
It is definetely more secure than the current practice of moving physical documents from one bank to another. The present system can cause inconvenience to customers in case the instrument is lost in transit or manipulated during the clearing cycle. Cheque truncation will eliminate such risks.
ARE CTS CHEQUES PAYABLE ANYWHERE IN INDIA ?
Yes, the cheques will be payable at par at all branches of the originating bank .
HOW TO USE A CTS CHEQUE ?
A customer will have to be very careful to filling up a CTS cheque because any alteration will make it invalid. Besides, customers should sign the new cheques with a darker ink so that their signatures remain visible after scanning.
Source: The Economic Times dt. 14.02.2013
V.SENTHILNATHAN
The reasons are as follows:
WHAT IS CTS-2010 ?
CTS 2010 is a cheque truncation system, an image based method for faster clearing of cheques. Truncation means conversion of a physical cheque into its electronic form. The new system, which will come into force from April 1, 2013, in India, will eliminate the current practice of physical presentation of cheques and save processing costs. Banks will send the scanned cheque image to the paying bank and clearance may happen the same day. Therefore, issuer of the cheque will receive the payments much faster.
WHAT ARE THE FEATURES OF CTS CHEQUES ?
A CTS cheque bears the words CTS 2010 near the left margin of the leaf and please sign above this line at bottom right. These cheques have a watermark, "CTS INDIA" which can be seen against light. The bank logo and details are rendered in ultraviolet (UV) ink at top left of the cheque leaf and will be visible only under UV scanners. IFSC and MICR codes are also be printed on the CTS cheques.
HOW SAFE IS THE NEW SYSTEM ?
It is definetely more secure than the current practice of moving physical documents from one bank to another. The present system can cause inconvenience to customers in case the instrument is lost in transit or manipulated during the clearing cycle. Cheque truncation will eliminate such risks.
ARE CTS CHEQUES PAYABLE ANYWHERE IN INDIA ?
Yes, the cheques will be payable at par at all branches of the originating bank .
HOW TO USE A CTS CHEQUE ?
A customer will have to be very careful to filling up a CTS cheque because any alteration will make it invalid. Besides, customers should sign the new cheques with a darker ink so that their signatures remain visible after scanning.
Source: The Economic Times dt. 14.02.2013
V.SENTHILNATHAN