What changed
The earlier deadline of December 31, 2012 for withdrawing non-CTS-2010 standard cheques and replacing post-dated EMI cheques has been extended to March 31, 2013. This follows representations from stakeholders seeking more time. After the extended deadline, any residual non-CTS-2010 cheques presented will still be accepted but cleared at less frequent intervals, with modalities and charges to be communicated separately.
What it means for you
Banks now have an additional three months to complete the migration to CTS-2010 standard cheques, reducing immediate operational pressure. However, the less frequent clearing of non-CTS cheques after March 31, 2013 will create processing delays and potential customer dissatisfaction. Banks must accelerate replacement of post-dated EMI cheques held for themselves or NBFC clients to avoid future clearing disruptions.
What you must do
- Ensure all non-CTS-2010 cheques are withdrawn and replaced with CTS-2010 standard cheques by March 31, 2013.
- Prioritize replacement of post-dated EMI cheques received on your own behalf or for NBFC clients before the new deadline.
- Continue customer awareness campaigns to inform account holders about the migration and the less frequent clearing of residual non-CTS cheques after March 31, 2013.
- Prepare for the separate communication on modalities and charges for clearing residual non-CTS cheques, and update internal processes accordingly.
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 relying on post-dated EMI cheques
What happens to non-CTS-2010 cheques presented after March 31, 2013?
They will still be accepted for clearing but will be processed at less frequent intervals. Specific modalities and any applicable charges will be communicated separately by RBI.
Does this extension apply to post-dated EMI cheques held by banks?
Yes, banks holding post-dated EMI cheques (on their own behalf or for NBFC clients) must replace non-CTS-2010 cheques with CTS-2010 standard cheques by March 31, 2013.