Bangalore: Have you seen the new Cheque Truncation System (CTS) compliant cheque book? It has many special features introduced by RBI to make the cheque payments a more secure and universalized mode of payment. Remember, your old cheque books from your bank account in India will become void after March 31, 2013, as the RBI has instructed all banks to implement the CTS across the nation. This calls for your immediate action to order for a new CTS-2010 Standard cheque books, states Adhil Shetty, CEO, BankBazaar.com.

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What is CTS?

CTS standard cheques are aimed at enhancing customer safety and facilitating easier processing. Under the CTS system, the physical movement of cheques between banks will be eliminated.

Normally, when you issue a cheque to someone, he presents the cheque in his bank to get the credit. And then, the cheque physically moves from his bank to your bank which involves a lot of time and risk.

RBI recognised the disadvantages of this old system and has introduced a new format for cheques, referred as CTS-2010, where instead of the physical movement of the cheque, an electronic image of the cheque is transmitted to the drawee branch (a bank that must pay for a draft or a bill).

The presenting bank (which is the bank of the person to whom you had issued the cheque to) retains the physical cheque.

In addition to the electronic image, certain relevant information is also transmitted, such as date of presentation, presenting bank details, data on the MICR band.

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