Cheque Truncation System (CTS) - 2010, New Cheque System to make transactions easy


Cheques play an important role in banking transactions. Not only from being treated as an alternative to cash, cheques are used as instruments of guarantee to the loan taken and other similar multifarious functions. With such noticeable functions cheques perform, they are also prone to large scale frauds. Not only to curtail these frauds, but also to get instant cash, new cheques system CTS 2010 came into existence from 1st January 2013.

What is Cheque Truncation System 2010?
As per the earlier practice, when we present a cheque to the bank, first the bank will send it to RBI; next, it goes to the cheque supplying bank and when that bank says ‘Yes’, then only the amount will be credited to your Account. For completing all these transactions, it takes at least 2 days. The new system CTS – 2010 (Cheque Truncation System – 2010) has stopped this system. From 1at January 2013, it would be enough if the photos of the cheques are sent. It means that from now on, cheques travel online and it facilitates faster clearance of cheques. It reduces the bank’s administrative expenses and also saves time. Customers will get credit of the amounts faster.

Then what is the difference?

Until now, banks used to design the cheques as per their choice. They used to give prominence to the look and feel, quality of paper and print of their cheques. As per CTS – 2010, all banks will have to follow the specified uniform design.

* The paper used for these new cheques should be of good quality and should be well-suited for taking photos. Any corrections made in them can be easily detected. They will not get damaged even if liquids spilled on them.

* Like Mahatma Gandhi’s picture is printed in the white space in the currency note, these cheques contain the symbol ‘CTS INDIA’. It can be seen when light is focussed from behind on it.

*Bank’s name will be printed on the left side in the cheque and it can be seen only using ultra-violet rays.

Earlier, we can attest any correction in the cheque with a signature beside it. New cheques will not accept this practice; it puts a stop to frauds.

* While indicating the location, where to sign; it will be prominently printed on the cheque that it is acceptable nation-wide.

* Cheques of all banks will be uniform in their design.  Account number, name of the bank, Water Mark, and the location where the cheque number is printed and other particulars will be uniform for all banks.

Then what should we do?

Old cheques became invalid from 1st January 2013. Therefore, if you have already issued cheques to anybody, get them back and issue the new cheques, especially in case of repayment of loans. Note that in case a cheque bounces back, unnecessarily you will have to pay a penal fee.

* In case, you forgot the names of persons to whom you issued the cheques, check-up the details recorded in the first page of the cheque book. Try to issue new cheques to them; even otherwise, there will not be any problem, since anyway the old cheques will become invalid.

If you are having old cheques with you …

Request the person, who issued the cheque to issue the new CTS – 2010 cheque. If you are still having unencashed cheques with you, deposit the same into the bank immediately. Some banks are advising to return the old cheques to them; if you have any, then return them and get new cheques.

12 comments:

  1. Nice post! One of the motivating factors to order bank checks online is that many online check printing services maintain a wide, almost endless selection of designs. The traditional way of ordering and reordering checks is through a request at your bank or credit union to issue a batch for you. Though this can be the most known way of how to order checks, most people these days don’t go through their banks anymore.

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  2. Nice post! It is the most widely used tool for drawing money from the bank. Cheque is used by the buyer or debtor to pay the due amount of goods to his seller or creditor out of his bank deposit. The traditional way of ordering and reordering checks is through a request at your bank or credit union to issue a batch for you. Thanks for giving us information..

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  3. Nice post! You’ll be able to order checks for personal or business use. you will not need to concern yourself with having someone else do this once arduous task. Some useful tips. If you are going to attempt to move forward with ordering checks online, it’s vital to find companies with an honest reputation. Thanks.

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  4. Nice post! Banks and credit Unions would love to be the only avenues from which you order your checks. Now, thanks to the online world, check ordering is much easier and less expensive. Thanks.

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  6. The CTS eliminates the time, money and manpower wasted during physical movement of cheques (from banks to clearing house).Thus, Cheque Truncation =faster clearing = better service to customers,Cheque Truncation system reduces the scope for clearing-related frauds.There is no fear of losing cheque in transit.
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  7. Nice post! Bank check designs come in an unlimited array of styles prints and patterns. now you are able to add your own custom designs to checks or even make your own photo checks with customized check designs. Ordering online nowadays can be an artistic journey. Or at least a fun experience. Thanks for giving us information..

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  8. Nice post! Cheque is an important means of payment. Cheque is used for paying a large sum of money. It is the most widely used tool for drawing money from the bank. Cheque is used by the buyer or debtor to pay the due amount of goods to his seller or creditor out of his bank deposit. Thanks.

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  9. Nice post! Checking account holders must be aware that when you order bank checks online, you will be required to provide some sensitive personal and financial information. Thanks for such a nice blog.

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  10. When purchasing checks online, you’ll need to provide your account number and routing number, which are usually printed on literature you received from your bank when you opened the account.
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