You have to switch to new cheques with prescribed standard features before Dec 31. If you've issued post-dated cheques for your home/auto loan EMIs, you'll have to issue fresh cheques. Banks will not charge any fee for replacing the old cheque leaves.
Customers need not worry about the impending CTS implementation. I am sure they will not be inconvenienced due to the migration process. Some transitory period, from January 1 to March 31, could be given during which both types of cheques will be accepted. Banks are sending messages to customers now so that they comprehend the urgency and act upon it," says AC Mahajan, chairman, Banking Codes and
Standards Board of India (BCSBI).
What is cheque transcation system (CTS)?
Cheque truncation system (CTS) was implemented by RBI at New Delhi Bankers Clearing House on a pilot basis. Chennai of late, too executed the same process.
Cheque truncation, according to National Payment Corporation of India (NPCI) is the process in which the physical movement of cheque within a bank, between banks or among banks and the clearing house is curtailed or eliminated, being replaced in whole or in part, by electronic records of their content (with or without the images) for further processing and transmission.
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