Standardization and enhancement of Security features in Cheque forms migrating to CTS 2010 standards

DEPARTMENT OF POSTS, INDIA

O/o Supdt. of Post Offices, Namakkal Division , Namakkal - 637 001

Ph:04286-220953, mail – spo_namakkal@rediffmail.com, web : donamakkal.blogspot.com

                                                                                      No    :  IR/CTS/Dlgs

Date :  28/03/2013

To

All the PMs / SPMs

In Namakkal Division

Sub   :         Standardization and enhancement of Security features in Cheque forms migrating to CTS 2010 standards – reg

The instructions on the above said subject issued by RBI vide lr.no.RBI/2012-13/444 dated 18.03.13, communicated vide RO lr.no.TCA/Misc/2012/CTS dated 26.03.13 is furnished below for information and necessary action at your end.

a. 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.

b. 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.

c. 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

d. 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.

e. 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.

f. 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.

g. 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.

         It is once again reiterated that old cheques should continue to be accepted at the counter of the Post Office for withdrawal till new cheque books are not supplied to the POSB customers. This may be brought to all the official for information.

Superintendent of PO’s

Namakkal Division,

Namakkal – 637 001