What changed
The earlier deadline of December 31, 2012 for replacing non-CTS-2010 standard cheques with CTS-2010 compliant ones has been extended to March 31, 2013. This follows representations from NBFCs seeking more time. After the new deadline, any remaining non-compliant cheques presented will be accepted but cleared less frequently.
What it means for you
NBFCs get a three-month breather to complete the migration to CTS-2010 standard cheques, reducing operational pressure. However, the penalty of slower clearing for non-compliant cheques after March 31, 2013 incentivizes timely compliance. Banks and NBFCs must coordinate to ensure customer cheques are replaced to avoid delays in EMI collections.
What you must do
- Ensure all non-CTS-2010 compliant cheques from customers are withdrawn and replaced by March 31, 2013.
- Communicate the extended deadline to customers and request replacement of post-dated EMI cheques.
- Prepare for slower clearing of any residual non-compliant cheques after the deadline.
- Acknowledge receipt of this circular and maintain records of compliance actions.
Who it affects
All NBFCs, Customers of NBFCs who use post-dated EMI cheques, Clearing banks handling NBFC cheque collections
What is the new deadline for replacing non-CTS-2010 cheques?
The deadline has been extended from December 31, 2012 to March 31, 2013.
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, potentially delaying payments.
Why was the extension granted?
RBI received representations from NBFCs requesting more time to complete the replacement of non-compliant cheques.