May 10th, 2013 by CHEQUEMAN
Travelers Cheques are cheques issued by financial institution that can be used as a form of payment. These are mostly used by people who are travelling as it can be easily replaced by the issuing financial institution if lost or stolen. They are widely accepted all around the world. These are issued in various denominations such as US Dollar, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, and British Pound.
At the time of purchase, the cheques are required to be signed as for the security purpose. The user has to again sign the cheque at the point of redemption so as to match both the signatures. At the time of purchase of cheques, the customer should be provided with the listing of the cheques purchased.
When using a cheque as the mode of the payment, customer provides the cheque to the merchant. He signs the cheque in presence of the merchant. Once the merchant verifies both the signatures, the applicable change is given back and the transaction is completed.
May 3rd, 2013 by CHEQUEMAN
A certified cheque or certified check is defined as a form of cheque for which the bank verifies that the sufficient fund exists in the account to cover the cheque, and so certifies at the time the cheque is written. Those funds are then set aside in the bank’s internal account until the cheque/check is cashed or returned by the payee. Thus a certified cheque/certified check cannot bounce and in this manner, its liquidity is similar to cash, absent failure of the bank or illegal act (such as funds being based on fraudulent loan, at which point the cheque will be disavowed. )
April 30th, 2013 by CHEQUEMAN
As per the Revised Guidelines of RBI the validity of Non-CTS compliant cheques have been extended till 31st  July 2013. Earlier it was extended till 31st March 2013. RBI has issued a note no. 1622 dated 18 March 2013 regarding extension of last date of CTS-2010 cheque book.
RBI/2012-13/444
DPSS.CO.CHD.No. 1622/04.07.05/2012-13
March 18, 2013
The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks/Local Area Banks
# Standardization and Enhancement of Security Features in Cheque Forms/Migrating to CTS 2010 standards
Madam / Dear Sir
A reference is invited to our circular DPSS.CO.CHD.No. 955/04.07.05/2012-13 dated December 14, 2012. On a review of the progress made by banks so far in migration to CTS-2010 standard cheques and in consultation with a few banks and Indian Banks Association, it has been decided to put in place the following arrangements for clearing of residual non-CTS-2010 standard cheques beyond the cutoff date of March 31, 2013.
1. All cheques issued by banks (including DDs / POs issued by banks) with effect from the date of this circular shall necessarily conform to CTS-2010 standard.
2. Banks shall not charge their savings bank account customers for issuance of CTS-2010 standard cheques when they are issued for the first time. However, banks may continue to follow their existing policy regarding cheque book issuance for additional issuance of cheques, in adherence to their accepted Fair Practices Code.
3. All residual non-CTS-2010 cheques with customers will continue to be valid and accepted in all clearing houses [including the Cheque Truncation System (CTS) centers] for another four months up to July 31, 2013, subject to a review in June 2013.
4. Cheque issuing banks shall make all efforts to withdraw the non-CTS-2010 Standard cheques in circulation before the extended timeline of July 31, 2013 by creating awareness among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in internet banking, notification on the web-site etc.
5. A progress report in this regard to be submitted to this department in the format prescribed in the annex, enabling monitoring of the progress made by banks in respect of migration to CTS-2010 standard cheques.
6. In addition, the bank-wise volume of inward clearing instruments processed in the Cheque Processing Centers will be monitored with respect to the CTS-2010 / non-CTS-2010 standard cheques presented on them.
7. No fresh Post Dated Cheques (PDC)/Equated Monthly Installment (EMI) cheques (either in old format or new CTS-2010 format) shall be accepted by lending banks in locations where the facility of ECS/RECS (Debit) is available. Lending banks shall make all efforts to convert existing PDCs in such locations into ECS/RECS (Debit) by obtaining fresh mandates from the borrowers.
The above instructions are issued under section 18 of the Payment and Settlement Systems Act 2007 (Act 51 of 2007).
Please acknowledge receipt and confirm compliance.
Yours faithfully,
(Vijay Chugh)
Chief General Manager
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