ChequeMan Blog

Smart and Easy Cheque Printing Software

No EMI cheques if ECS is available

Banks have been directed by the Reserve Bank of India to not accept any fresh post-dated equated monthly instalment (EMI) cheques at locations where the facility of electronic clearing service/Regional Electronic Clearing Service is available.

The central bank has also advised banks to convert existing cheques in such locations into ECS/RECS (Debit) by obtaining fresh mandates.

Cheques complying with the CTS-2010 standard formats alone should be collected, at locations where the facility of ECS/RECS is not available.

The new ‘CTS 2010’ standard cheque has been introduced on account of several developments in cheque clearing — growing use of multi-city and payable-at-par cheques at any branch of a bank, popularity of speed-clearing for local processing of outstation cheques and implementation of grid-based cheque truncation system for image-based cheque processing.

ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. Essentially, ECS enables bulk transfer of money from one bank account to several other bank accounts, or vice-versa.

Under ECS (debit), an account-holder with a bank branch can authorise an ECS user to recover an amount at a prescribed frequency by raising a debit to his / her bank account.

Regional ECS currently operates at nine centres / locations across the country.

RECS facilitates the inclusion of all core-banking-enabled branches in a State, or group of States, and can be used by institutions to reach beneficiaries easliy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.