What changed
RBI has prescribed mandatory minimum security features for cheque forms, such as quality paper, watermark, bank's logo in invisible ink, and void pantograph, along with standardized field placements. These benchmarks, called CTS-2010 standard, aim to ensure uniformity across all banks and support image-based cheque processing. The effective date will be announced later, but implementation must occur before CTS rollout in Chennai.
What it means for you
Banks must upgrade their cheque printing and issuance processes to comply with CTS-2010, which will reduce cheque fraud and enable straight-through processing. This standardizes cheque formats across the industry, making it easier for presenting banks to verify cheques in image-based systems. Non-compliance could lead to operational issues as CTS expands.
What you must do
- Review the annexed CTS-2010 specifications and plan for mandatory security features like watermark, invisible ink logo, and void pantograph.
- Coordinate with IBA and NPCI for guidance on implementing additional security features.
- Update cheque printing contracts and inventory to meet the new standard before the effective date.
- Train staff on recognizing and processing CTS-2010 compliant cheques.
- Prepare for system changes to handle standardized field placements for optical character recognition.
Who it affects
All scheduled commercial banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Cheque printers and paper manufacturers
What is the CTS-2010 standard?
It is a set of mandatory minimum security features and standardized field placements for cheque forms, prescribed by RBI to enhance security and enable image-based processing under Cheque Truncation System.
When must banks implement CTS-2010?
The effective date will be advised later, but implementation must be completed before the rollout of CTS at Chennai.
Who will coordinate the implementation?
Indian Banks' Association (IBA) and National Payments Corporation of India (NPCI) will coordinate and advise banks on introducing additional security features.