NBFCs Must Replace Non-CTS-2010 Cheques by Dec 31, 2012
Current · Source: Reserve Bank of India · RBI/2012-13/280 · issued 06 Nov 2012 · ~1 min read
Quick answerRBI mandates all NBFCs to replace non-CTS-2010 compliant post-dated cheques with CTS-2010 standard cheques by December 31, 2012, to ensure uniform security features and field placements.
The rule, in the simplest words
All NBFCs must replace non-CTS-2010 compliant post-dated cheques with CTS-2010 standard cheques by December 31, 2012.
NBFCs must ensure all cheques have mandatory security features like watermark, invisible ink logo, and void pantograph.
NBFCs must proactively engage with customers to swap old cheques and ensure all instruments meet the new security benchmarks.
How it plays out — a real example
Rahul, an NBFC compliance officer in Indore, called his customer, Mr. Kumar, to inform him that his post-dated cheque was not compliant with the new CTS-2010 standards. Rahul explained the importance of replacing the cheque and offered to help Mr. Kumar get a new one. Mr. Kumar was grateful for Rahul's help and appreciated the extra security features on the new cheque.
What changed
RBI issued a directive requiring NBFCs to migrate all cheque forms to CTS-2010 standards, which include mandatory security features like watermark, invisible ink logo, and void pantograph. NBFCs must replace any non-compliant post-dated cheques from customers before the deadline.
What it means for you
NBFCs must proactively engage with customers to swap old cheques, ensuring all instruments meet the new security benchmarks. Failure to comply could lead to cheque processing issues and regulatory scrutiny, impacting EMI collections and operational efficiency.
What you must do
Identify all non-CTS-2010 compliant post-dated cheques in your portfolio.
Contact customers to arrange replacement with CTS-2010 standard cheques before December 31, 2012.
Submit a confirmation plan to your regional RBI office detailing the implementation steps.
Update internal systems and vendor agreements to ensure future cheques meet CTS-2010 standards.
Who it affects
All NBFCs accepting post-dated cheques, Customers providing post-dated cheques to NBFCs, Cheque printing and processing vendors
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the CTS-2010 standard?
It is a set of benchmarks for cheque forms, including mandatory security features like quality of paper, watermark, bank's logo in invisible ink, and void pantograph, along with standardized field placements.
What happens if NBFCs don't replace non-compliant cheques by the deadline?
Non-compliance may lead to cheque processing failures and regulatory action under RBI Act sections 45 JA and 45K. RBI expects a plan to be in place and confirmed to the regional office.
Does this apply to all cheques or only post-dated ones?
The directive specifically addresses post-dated cheques accepted for future EMI payments, but the standard applies to all cheque forms issued by banks.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/280
DNBS.PD/CC.NO.308/03.10.001/2012-13
November 6, 2012
All NBFCs
Dear Sir,
Standardisation and Enhancement of Security Features in Cheque Forms - Migrating to CTS 2010 Standards
"CTS-2010 standard“ is a set of benchmarks towards achieving standardisation of cheques issued by banks across the country. These include provision of mandatory minimum security features on cheque forms like quality of paper, watermark, bank's logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques. The benchmark prescriptions known as "CTS-2010 standard“ are to be implemented by December 31, 2012.
2. NBFCs accept post dated cheques from their customers for future EMI payments, and some of such instruments may not be compliant with the CTS-2010 standard. NBFCs are, therefore, required to ensure the replacement of Non–CTS-2010 standard compliant cheques with CTS-2010 standard compliant cheques before December 31, 2012.
3. The above instructions are issued in terms of Section 45 JA and 45K of the Reserve Bank of India Act, 1934 (Act 2 of 1934).
4. Please acknowledge receipt and confirm to the Regional Office of the Bank that a plan has been put in place for implementing the "CTS-2010 standard" within the prescribed timeline.
Yours sincerely,
(Uma Subramaniam)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/280 · issued 06 Nov 2012. The plain-English explanation above is BankPulse’s own independent summary.
Update internal systems and vendor agreements to ensure future cheques meet CTS-2010 standards.
📜 Compliance
Identify all non-CTS-2010 compliant post-dated cheques in your portfolio.
Contact customers to arrange replacement with CTS-2010 standard cheques before December 31, 2012.
Submit a confirmation plan to your regional RBI office detailing the implementation steps.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All NBFCs accepting post-dated cheques, Customers providing post-dated cheques to NBFCs, Cheque printing and processing vendors), your first concrete step on “NBFCs Must Replace Non-CTS-2010 Cheques by Dec 31, 2012” is: “Identify all non-CTS-2010 compliant post-dated cheques in your portfolio.” (RBI issued this 06 Nov 2012).
Circular: RBI/2012-13/280 -- NBFCs Must Replace Non-CTS-2010 Cheques by Dec 31, 2012
Issued: 06 Nov 2012
Action required: Identify all non-CTS-2010 compliant post-dated cheques in your portfolio.
Action required: Contact customers to arrange replacement with CTS-2010 standard cheques before December 31, 2012.
Action required: Submit a confirmation plan to your regional RBI office detailing the implementation steps.
Action required: Update internal systems and vendor agreements to ensure future cheques meet CTS-2010 standards.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7675&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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