September 3, 2012

Know your new “CTS-2010 Standard” Bank Cheque Format

It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called CTS-2010. Which will be available from 30th Sept 2012. Also already circulated cheques will be replaced within 31st December 2012. So it is necessary for all to understand how your new cheque format looks like.

Latest news-Deadline of 31st December 2012 is extended to 31st March 2013 from RBI. To see full details on new extension Click Here

1) Paper-Same specification will continue related to paper specification as it exist now. In addition to that, paper should be image friendly and have protection against any alteration by having new features as chemical sensitivity to acids, alkalis, bleaches and solvents giving  clear visibility of alteration. New cheque will not glow under Ultra-Violet light. This will make all cheques feel like same across all banks.

2) All cheques carry standardised watermark called “CTS-INDIA” which can be seen when you held cheque against light. This feature will avoid fraudulent from photocopying or printing it. Mark will be in oval shape, and diameter of it is 2.6 to 3.0 cms. Each cheque will have atleast one full mark. Sample of the same will look like this.

 

3) VOID pantograph-Pantograph with hidden or embedded “COPY” or “VOID” will appear in the cheque. This feature will not be visible on the scanned image at the resolution specified in CTS but will easily visible on photocopies and scanned images because the resolution used during such process will content higher resolution which is specified in CTS.  This will ensure photocopying and scanning of cheque.

4) Bank Logo-It will be printed in ultra-violet ink. The logo will be captured or visible in ultra violet enabled scanners. It will establishes genuineness of cheque.

5) Field placement of cheque-Placement of significant fields are made mandatory but additional fields can be added by banks with their wish. This will make capturing optical/Image character recognition (OCR/ICR) in offline mode and help banks in automating their payments. Sample of the cheque will looks like below.

6) Colour and Background-Light/Pastel colours will be mandated for cheques.  But the finalisation will be after consultation with Indian Bank Association and National Payment Corporation of India.

7) Clutter free background-Background will be keep clutter free as possible for improving  quality and clarity of images.

8) Alterations/Correction on cheques-No changes or corrections should be carried out on cheques (except for date validation purpose, if required).

9) Printing of account field-All cheques should be issued with the account number field pre-printed. Especially this is must for current accounts.

10) Additional security features-Other than above mandatory features cheque may content below few features based on Banks own risk calculation.

a) Supplementary watermark containing their own logo, b) embedded fluorescent fibers, c) fugitive ink,  d) Secondary fluorescent ink, e) micro-letting, f) toner fusing, g) check-sum, h) patterns, i) floral designs, j) bleeding ink, k) structural magnetic,  l) security thread, m) hot stamped holograms on multi city cheques and drafts, n) auto-detection tools, o) use of UV band to identify amount in words, amount in figures, signature and beneficiary name, p) pre-encoding of amount field on the MICR bandfor DDs and pay orders before issuing to customers. q) use of check-sum on the face of DDs and pay orders (other than MICR band). But the above said additional features are based on rules and regulation of CTS-2010.

Hope I simplified as much as possible. Few words are new to me too. But use generic wordings for better understand for all.

 

77 Comments

  1. sir
    whats the date for switch over from old system to cts through out india

    Reply
  2. MY BANK HAS CHARGED FOR FIRST CHEQUE BOOK ISSUANCE OF CTS CHEQUES WHERE AS FIRST CHEQUE BOOK SHOULD BE ISSUED FREE. COULD YOU PLEASE MAIL MR “RBI CIRCULAR WHERE IT WAS MENTIONED THAT FIRST CHEQUE BOOK TO BE ISSUED FREE” ON MY MAIL ID [email protected]

    Reply
    • Mahendra-Sorry was unable to find a particular circular or notification of the same. But this news item may be helpful for you. Click Here

      Reply
  3. HI,

    Is it necessary that cheques should have the name of the account holder printed? Because for a ECS transfer some of the financial institutions insist on personalised cheques or alternatively ask us to get an account authorising form signed by the bank authorities.

    Reply
  4. Thanks

    Reply
    • Shashi-Pleasure 🙂

      Reply
  5. The article is well written. It has explained CTS-2010 clearly and in simple English. Cudos !!! to you.

    Reply
    • Shashwat-Thanks for your appreciation 🙂

      Reply
  6. Thanks, Mr. Basu. You are the Boss of very useful information regarding CTS-2010 Cheque

    Reply
    • Aghilan-Pleasure 🙂

      Reply
  7. Indian Bank charges rupees thirty for one CTS-2010 cheque book, from customers. Is this allowed? The account is an old one.

    Reply
    • Umakant-I heard the same news that few banks started to collect these charges. In my view it is unfair and I think RBI guidelines also not specify about charges. Let us see what will unfold in coming days.

      Reply
  8. thanks for aware.

    Reply
    • Gaurav-Thanks 🙂

      Reply
  9. Thanks Basu! I have confirmed with SBI that the date has been extended until 31 March 2013. Just a matter of info for all other readers – SBI shall be charging such cheques with Rs. 2 per leaf for multi city operation, for accounts opened before 2012. For accounts opened this year, only the first cheque book issued will be free of cost, thereafter even they shall be charged. Normal single city cheques are not being issued. I fail to understand SBI’s motive to earn from such mode, from the general public for savings accounts.

    Reply
    • If it is confirmed message then thanks for sharing 🙂 Even me too surprised with charging on cheque issues.

      Reply
  10. As per the latest news, the mandatory date has been extended to 31 March 2012. Is it correct? Secondly, do you have any knowledge that the leading private banks like Axis, HDFC, ICICI, etc – have been issuing such CTS 2010 compliant cheque books since 2010?

    Reply
    • Jaideep-I dont have any idea about neither of new date what you mentioned nor the issuing of CTS 2010 cheques since 2010. May be they are issuing but not in full fledged. Hence to make it uniformity RBI came with these new guidelines.

      Reply
  11. thanks its really helpful

    Reply
    • Aparajita-Pleasure to see your comment 🙂

      Reply
  12. I enquired with SBT whether to change my holding cheque book to obtain the new CTS-2010. What has been orally informed is that so long the details relaing to the A/c No. Micr No. and IFSC etc are availabe in the cheque leaf already held, it may be sufficient and need not change the cheque book. Is it correct ?

    Reply
    • Subramanian-All the things like your account number, MICR and IFSC code remain same. But your cheque will be in new format.

      Reply
  13. thanks for the details given

    Reply
    • Chandrasekaran-You are welcome 🙂

      Reply
  14. Useful information. Thank you for your efforts to put up the information for people awareness. It shows your social commitment.

    Reply
    • Saravanan P-Thanks for commenting and certifying my efforts. Hope you share these information with your friends and relatives too.

      Reply
  15. Is it possible non CTS cheque to use for cash withdrawal or internal funds transfer?

    Reply
    • Vijay-I dont think it is possible as they want to standardize and uniform usage.

      Reply
  16. Basuji, You made me understand well about CTS 2010 standard cheques.The information about these cheques is even not known to some of our bank staff also.Any how thanks to u for the information and I have received the same format cheques from my bank.

    Reply
    • Satyanarayana-Thanks sir for your appreciation. Request you to share this post with your colleagues and friends too.

      Reply
  17. What does CTS stand for, is not explained in yr article, also the new CTS compliant cheques are fool proof against colour zeroxing, am i right?, i do not know how much of fraud took place due to fake cheques due to zeroxing, my banker tells me that for withdrawls the old cheques are valid only where clearances are involved the CTS Cheques are to be used any way the article was interesting

    Reply
    • Dr.Nethaji-CTS stands for Cheque Truncation System. Yes they are fool proof. Thanks for commenting.

      Reply
  18. Thanks Basu ji, Your information regarding CTS-2010 standard cheques. Same Standard cheque book received by me from my banker.

    Reply
    • Sachin-Thanks and congrats for receiving cheques 🙂

      Reply
  19. thanx a lot sir for making me understand about CTS-2010

    Reply
    • Chandra Shekhar-Pleasure to have your comment.

      Reply
  20. great iformation

    Reply
    • Thanks Sanjay.

      Reply
  21. yes it is very useful information about CTS2010

    Reply
    • Thanks Gyanender.

      Reply
  22. SMSs RECEIVED IN MY VODAFONE NUMBER ********** from MTNL
    FROM :- MM-MTNL PRS>>>>”Dear customer, as per RBI guideline only CTS-2010 standard cheques would be acceptable for making payment towards your MTNL telephone mobile bills.”

    I have received above SMSs. 11 times & again 11 times after 30 minutes.

    Reply
    • Anil-Then you need to thank BSNL for this customer awareness campaign 🙂 Yes it is true.

      Reply
  23. beautiful article…

    Reply
    • Vignesh-Thanks 🙂

      Reply
  24. I have given ECS against my Home loan & car loan, for them do i need to give new format cheques.

    Reply
    • Srinivas-Better to replace with new one. But still advice you to consult your banker once about this issue.

      Reply
  25. Very clear information….and very useful..thanks a lot..

    Reply
    • Balraj-Thanks 🙂

      Reply
  26. very useful

    Reply
    • Srinivasa-Thanks 🙂

      Reply
    • Sanjay-Thanks 🙂

      Reply
  27. Provide one sample cheque leaf of UNION BANK OF INDIA

    Reply
    • Ravindra-I provided the standard format. If you have account with Union Bank then better to contact them.

      Reply
  28. Provide one sample cheque leaf.

    Reply
    • Ravindra-I replied to your query.

      Reply
  29. Nice and informative article. Thanks..!

    Reply
    • Manjunath-Thanks.

      Reply
  30. Thanks for the sharing the valuable information, It is very helpful

    Reply
    • Praveen-You are welcome 🙂

      Reply
  31. Thanks for sharing. Very useful.

    Reply
    • Divakar-Thanks for your appreciaiton 🙂

      Reply
  32. Explained in very understandable & simple language Mr. Basu. Thanx a lot.

    Reply
    • Naveen-Thanks a lot 🙂

      Reply
  33. Thanks for useful information timely.

    Reply
    • Tyagi-You are welcome 🙂

      Reply
  34. Knowlegable Information

    Reply
    • CA Shabbir Qureshi-Thanks for your comment 🙂

      Reply
  35. its very good . this has so many information regarding cts cheque and we could know what this cts is and how does it looks.
    rajeev

    Reply
    • Rajeev-Thanks for your comment 🙂

      Reply
  36. thanks

    Reply
    • Sanjay-You are welcome 🙂

      Reply
    • Thanks Basu Nivesh, its informative

      Reply
      • Mahesh-You are welcome 🙂

        Reply

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