As per RBI guidelines, there have been certain changes made to the cheques issued by the Bank. However, these security features/changes are available only in CTS-2010 Standard cheque books issued. Any non CTS-2010 standard cheques will not be valid after December 31, 2012.

Now the question would have arrived, What is CTS?

CTS stands for “Cheque Truncation System”. Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en-route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.

Cheque truncation, would eliminate the need to move the physical instruments across branches, except in exceptional circumstances. This would result in effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.

Read here for more details about CTS-2010 Standard” for Cheque Forms – Specifications:

See below image for sample of “CTS-2010 Standard” Bank Cheque format.

The following are some of the features of CTS-2010 Standard cheque :

  1. Please sign above” is mentioned on cheque leaf on the lower right-hand side.
  2. A wave like design is embossed on the left-hand side of Cheque leaf-below the account number.

Only if the cheques you currently hold have the above mentioned features, they will be valid after December 31, 2012. Additionally, any post-dated cheques issued by you and due after December 31, 2012 will need to be replaced by the fresh cheques meeting the above mentioned guidelines.

So be careful and get your new Cheque book from your Bank. Click here to read the FAQs related to CTS 2010 Standard Cheques.

Your present Cheque Book will Not be Valid After 31-Dec-2012

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