Monday, March 18, 2013

RBI extends deadline for issuance of new format cheques

RBI extends deadline for issuance of new format cheques
  The RBI today asked banks to
issue new cheque books only under the new format and gave them
time till July-end to withdraw the old format cheques.
 All cheques currently with customers in the old format
(non-Cheque Truncation System) will continue to be valid for
another four months (the earlier deadline was March 31), the
apex bank said.
 The Reserve Bank also said the system of post dated
cheques and payment via Equated Monthly Installment (EMI), in
either the old or new format, will be banned from now wherever
electronic debit facilities are available.
 "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) centres] for
another four months up to July 31, 2013, subject to a review
in June 2013," RBI said in a circular to bank heads.
 It asked them to create awareness about the issue
among customers through SMS alerts, letters, display boards in
branches/ATMs, log-on message in Internet banking and
notification on the web-site so that the deadline can be met.
 "All cheques issued by banks (including DDs/POs) with
effect from the date of this circular shall necessarily
conform to CTS-2010 standard," the circular said.
 In December, the RBI had extended the deadline to
convert to the new standard CTS-2010 by three months to March
31, based on the representations from stakeholders. Today's
circular was issued following consultation from the industry
body Indian Banks Association and a few lenders.
 The CTS-2010 eliminates the current practice of
physically presenting a cheque to the payee bank, thereby
substantially reducing the time for cheque clearance.

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