New CTS Cheques : Faster, More efficient, Secure Payment..!


From January 1, 2013 our country India will move to a faster, more efficient and secure payment settlement system in which banks will only honour cheques embedded with new features.

Under the new CTS (Cheque Truncation System) cheques will be cleared in a day - against 3 days taken on an average at present.

The bew system has had a successful pilot run in a few pockets after the RBI (Reserve Bank of India) issued the roadmap for migrating to the new structure in a circular issued last December, 2012


The CTS will do away with the need for physical movement of cheques from a bank branch to a clearing house before the amount is credited to the bank customer’s account.

Instead, entrenched with standardised features like watermarks & a pantograph, cheques will be cleared electronically through an encrypted & highly secure online gateway.

Eliminate Frauds..!

Besides cutting down on time, the new system will also eliminate clearing- related frauds and help slash banks’ manpower and administrative costs by eliminating some steps.

Prohibiting alterations / or corrections on cheques :

No changes / or corrections should be carried out on the cheques (other than for date validation purposes, if 
required).


For any change in the payee’s name, courtesy amount (amount in figures) or / legal amount (amount in words), etc., fresh cheque forms should be used by customers.

This would help banks to identify & control fraudulent alterations.This rule will applicable on branches in which CTS clearing system will start with effect from  01.01.2013.

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