CST-2010

CST-2010

Reserve Bank of India (RBI) has implemented Cheque Truncation System (CTS) effective from 01 October, 2012. It has directed all banks to issue only CTS-2010 compliant cheques. Hence the current cheques won't work starting Jan 1, 2013. Banks are busy sending the new cheques with MICR and IFSC. Cheques will have to be in a standard paper type across the banks, with a water mark in the center and the bank's logo. Corrections on cheques are not allowed, which means if you make a mistake, you will have to write a new one. The paper has chemical sensitivity to any solvents, acids, bleaches etc. Basically it is aimed at reducing frauds, and to simplify cheque clearing system whereby cheques can be cleared electronically the same day, saving time and manpower. If any post dated cheques have been issued, those needs to be collected back from the lender and issued a new one.