What changed
RBI observed that many banks continued issuing non-CTS-2010 cheques even in northern and southern CTS grid regions, despite a prior December 2011 circular setting a September 30, 2012 deadline. This circular reinforces the deadline and adds specific compliance steps: banks must confirm arrangements by September 14, 2012, withdraw old cheques by December 31, 2012, and replace post-dated EMI cheques by the same date.
What it means for you
Banks must urgently stop issuing non-CTS-2010 cheques and actively recall them from circulation. Non-compliance risks operational friction in image-based clearing and fraud vulnerabilities. The fixed field placement in CTS-2010 enables straight-through processing, reducing manual intervention and costs for drawee banks.
What you must do
- Issue only CTS-2010 multi-city/payable-at-par cheques from September 30, 2012 onwards.
- Submit confirmation of CTS-2010 readiness to RBI by September 14, 2012.
- Launch customer awareness campaigns (SMS, letters, branch displays, internet banking, website) to withdraw non-CTS-2010 cheques by December 31, 2012.
- Replace all non-CTS-2010 post-dated EMI cheques (own or NBFC clients) with CTS-2010 versions before December 31, 2012.
- Report progress on withdrawal of old cheques to RBI by November 30, 2012.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Local Area Banks, NBFCs (via banks holding their post-dated cheques)
What happens if we don't meet the September 30, 2012 deadline for issuing CTS-2010 cheques?
RBI has issued this circular under the Payment and Settlement Systems Act, 2007. Non-compliance may invite regulatory action. Banks must ensure all new cheque books issued from that date are CTS-2010 compliant.
How should we handle post-dated EMI cheques that are non-CTS-2010?
You must proactively contact customers to replace those cheques with CTS-2010 versions before December 31, 2012. This applies to cheques held on your own behalf or for NBFC clients.
What are the key benefits of CTS-2010 cheques for our bank?
Standardized security features help verify cheque genuineness in image-based clearing, reduce fraud risk, and fixed field placement enables straight-through processing via OCR/ICR, lowering operational costs.