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Features of new CTS – 2010 Compliant Cheques

Following are the features of new ‘CTS – 2010 Compliant’ Cheques

1. Branch address with IFSC code printed top of the cheque.
2. Date in dd/mm/yyyy format with boxes.
3. There is a new symbol of rupees inserted near the numerical amount column.
4. “Please Sign Above” is written on the cheque at the bottom right side.
5. Wave like design is embossed on the left hand side of cheque.

Features of New CTS – 2010 Compliant Cheques

Benefiting the account holder

• Clearing time is decreased as there is no manual or physical movement of cheques.
• With electronic transmission of cheques the settlement process would be quicker.
• The loss of cheques in manual transmission is also eliminated.
• Fraudulent in cheque clearing is also eliminated.
• Limitation of cheque clearance on the basis of location is also eliminated.

Introduction to Cheque Truncation System (CTS)

Introduction to Cheque Truncation System:

As per RBI Guidelines, pertaining for cheque clearing from 1st April 2013, all banks will have to comply with CTS – 2010 norms i.e. “Cheque Truncation System – 2010.” This involves scanning of cheque images and subsequent electronic movement/replication of these images within the system for processing and clearing of cheques.

Once the CTS-2010 is implemented it is expected:

• Cheques would be cleared within one day.
• Increase in overall efficiency.
• Reduction in scope of frauds and errors.

As part of the system, all banks would be using a standardized cheque format with security features.