Bank Savings: Sweep in Facility Vs Flexi Deposit, Which is better?

All of us build our contingency reserves and keep it in our locker or / savings bank account for any emergency that may arise in the future. By keeping this money in savings bank account we are able to maintain the required liquidity of funds; but the interest at 4% per yea…

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Whether the Cheque Truncation System has legal sanction?

Whether the Cheque Truncation System - CTS -  has legal sanction?   With amendments in the Sections 6 and 1 (4), coupled with the introduction of 81 A to the Negotiable Instruments Act, 1881, truncation of cheques is now legalized. Need for any further clarifications, who can…

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Precautions required to be taken by Bank Customers to avoid frauds in cheques ?

Banks / Bank Customers should use "CTS* 2010" cheques which are not only image friendly but also have more security features. Customers may request / insist their banks for cheque forms that are compliant with the "CTS 2010" standard. They should preferab…

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How image, data transmitted over the network is secured in CTS?

The security, integrity, non-repudiation and authenticity of the data and image transmitted from the paying bank to the payee bank are ensured using the PKI (Public Key Infrastructure). Cheque Truncation System (CTS)  is compliant to the requirements of the IT Act, 2000. It …

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Reserve Bank eases norms on small money transfers

Reserve Bank of India (RBI) on recently relaxed norms by doubling the transaction cap on small money transfers, who do not have bank accounts, Under the new norms, the cash payout arrangements for amounts being transferred out of bank accounts to beneficiaries not having …

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If a customer desires to see physical cheque issued by him, what options available in CTS?

Under CTS the physical cheques are retained at the presenting bank level & do not move to the paying banks. In case a bank customer desires, banks can provide images of cheques duly authenticated. In case, however, a bank customer desires to see /  or get the physical ch…

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Banks to put up list of unclaimed deposits on Web site : RBI

The Reserve Bank of India ( RBI) on recently asked banks to display the list of unclaimed deposits and inoperative accounts which have been inactive / inoperative for ten years or more on their respective Web sites. According to the RBI notification, the list so displayed …

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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 day…

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Banks May Make Your Identity Public : Loan Defaulters Beware...!

Adopting a name & shame policy to make home loan borrowers pay their dues, banks have decided to publish in newspapers photographs & details such as names and addresses of wilful loan defaulters and market leader State Bank of India (SBI) has taken the lead in doing…

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Is Islamic Banking Possible in India?

The Reserve Bank of India (RBI) governor, Mr. D.Subbarao on recently said the current Banking Regulation Act does not permit Islamic banking & that the central government will have to bring in a new law if it wants to introduce it in India. The governor Mr. D.Subbarao sa…

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