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.
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View Comments
sir
whats the date for switch over from old system to cts through out india
Ashwini Singla-It is extended till 31st Dec 2013.
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 sanup27@rediffmail.com
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
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.
Sub pagal bnate ho///
D@V-May know what you are saying?
Thanks
Shashi-Pleasure :)
The article is well written. It has explained CTS-2010 clearly and in simple English. Cudos !!! to you.
Shashwat-Thanks for your appreciation :)
Thanks, Mr. Basu. You are the Boss of very useful information regarding CTS-2010 Cheque
Aghilan-Pleasure :)
Indian Bank charges rupees thirty for one CTS-2010 cheque book, from customers. Is this allowed? The account is an old one.
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.
thanks for aware.
Gaurav-Thanks :)
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.
If it is confirmed message then thanks for sharing :) Even me too surprised with charging on cheque issues.