What changed
Earlier circulars (Sept 3 and Oct 19, 2012) required all UCBs to issue only CTS-2010 standard cheques by Sept 30, 2012 and submit a compliance report by Sept 14, 2012. This circular notes that some banks have not yet submitted the confirmation, and reiterates the directive with urgency, asking for immediate submission for paragraphs 3(i) and 3(ii) and for paragraph 3(iii) within the target date indicated in the earlier circular.
What it means for you
UCBs that have not complied risk regulatory scrutiny and potential penalties. The RBI is tightening oversight on cheque standardisation to ensure interoperability and reduce fraud. Banks must prioritise this submission to avoid disruptions in cheque clearing.
What you must do
- Immediately submit the confirmation report for paragraphs 3(i) and 3(ii) of the Sept 3, 2012 circular to DPSS, CO.
- Ensure compliance with paragraph 3(iii) within the target date indicated in the earlier circular and submit the related confirmation.
- Verify that your bank has fully migrated to CTS-2010 standard cheques and that all arrangements are in place.
Who it affects
All Primary (Urban) Co-operative Banks (UCBs), Chief Executive Officers of UCBs, Departments handling cheque issuance and payment systems
What is the CTS-2010 standard?
CTS-2010 is a cheque standardisation framework introduced by RBI to enhance security and enable faster clearing. All banks were required to issue only CTS-2010 compliant cheques from a specified date.
What happens if we don't submit the compliance report?
The circular warns of further regulatory action. Non-compliance may lead to penalties or restrictions on cheque issuance. Immediate submission is advised.