Cheque Truncation System: Banks to block circulation of non-CTS cheques by March 31
According to a notice issued by the Reserve Bank Of India, the circulation of non-CTS cheques should be blocked by March 31, 2013 and replaced by Cheque Truncation System, CTS 2010 standard. People are now approaching banks for getting cheque books according to the new format issued.
Comparing the old system of cheques with the new CTS, RK Gupta, Manager, Punjab National Bank said, "Now there is no obligation to send the cheques physically as the image of the cheque is captured by the system and sent electronically. The format is standardized and the new features like the invisible logo of the bank and void pantograph help keep a check on fraudulent cheques".
"The new system is very genuine and brings a lot of ease to the users, though the prohibition of any alterations in the cheque will surely require some practice," said Vaishali Grover, an account holder at PNB. Similarly, Ravinder Yadav, Manager, Bank Of India (BOI) said, " More than fifty account holders request it on a daily basis".
The system has a lot of new features, specifically the security feature and the clearing of cheques on the same day. Harjot Kaur, Senior Manager, UCO Bank said "CTS 2010 is surely a great technological development in the banking industry as it makes it easier for the banks to work as a group". On the other hand, Lovely Khurana is quite convinced and satisfied with the fact that the clearing of cheques will no more take three long days.
The CTS 2010 standard is highly accessible and profitable though it might lead to the wastage of resources as people lack complete knowledge. The old cheques cannot be used for clearing but can still be used for withdrawal purpose. The last date to completely stop the circulation and usage of the old format was earlier decided to be December 31 which is now changed to March 31 and with people becoming more aware, it gives them quite some time to act accordingly for minimal wastage and misuse of resources.