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Thursday, February 14, 2013

Why you need CTS cheques?

By, Atmadip ray, ET

 From April 1, your cheque book will become invalid if it is not CTS 2010-enabled. Here's why: 

What is CTS 2010?

CTS 2010 is a cheque truncation system, an image-bound method, for faster clearing of cheques. Truncation means conversion of a physical cheque into electronic form.

The new system, coming into force from April 1, will eliminate the current practice of physical presentation of cheques and save processing costs.

Banks will send the scanned image to the paying bank and clearance may happen the same day.

Cheque payment, will therefore, happen much faster.

Are CTS cheques payable anywhere in India?

Yes, the cheques will be payable at par at all branches of the originating bank

What are the features of CTS cheques?

A CTS cheque bears the words 'CTS 2010' near the left margin and 'Please sign above this line' at the bottom right.

These cheques have a watermark, 'CTS INDIA', visible against light.

The bank logo and details are rendered in ultraviolet (UV) ink at the top left of the cheque leaf and will be visible only under UV scanners.

IFSC and MICR codes are also printed on the CTS cheques.

How safe is the new system?

It is definitely 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 the transit or manipulated during the clearing cycle.

Cheque truncation will eliminate such risks.
How to use a CTS cheque?
A customer will have to be very careful in 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

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