As per the new rule proposed by Reserve Bank of India (RBI) for the ease of cheque clearing system, the new Cheque Truncation System aka CTS cheques will replace all existing non-CTS cheques from 1st January 2019 – which simply means most of the existing cheque and cheque books will be invalid to use.

Introduced way back in 2008, the Cheque Truncation System is a digital cheque truncations system that enables faster cheque clearing, as it doesn’t use a physical cheque for the clearance like the existing traditional cheques do. Instead, the CTC uses a digital image of the cheque, which will reduce time and cost to move physical cheques across branches for easier, faster and convenient clearance compared to the  non-CTS cheques. Besides being faster, issues like cheques getting lost while transiting, vulnerability to bogus clearance, etc will be no longer be a problem with implementation of the new system.

Banks have been issuing CTS compliant cheque books to the new customers, but there are still many account holders, who have old-school non-CTS – so get yours checked now. Since RBI will discontinue the passing of non-CTS cheques from January 1, it is necessary to submit all the non-CTS cheques to your bank and get yourself, the CTS-compliant cheque books – note that this will not cost any money and getting CTS cheque book is free. It might look like the “death of standard system, but the new CTS checks will be it will time and cost effective, and customers will get clearance much faster.

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