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Query related to Non CTS cheque & its clearing
10-Aug-2023 (In Cheque Bounce Law)
I have lended some money to my relative & he has given non CTS cheque in around 2013. Can this non CTS cheque be used for filing case under NI Act in 2017 in case of dishonor of cheque? . Which bank will accept this non CTS cheque for clearing process? I have saving account with SBI. Will SBI accept it.?
The RBI (Reserve Bank of India) on 18th March asked banks to issue new cheque books only under the new format and gave them time till July-end to withdraw the old format cheques.
All cheques currently with customers in the old format (non-Cheque Truncation System) will continue to be valid for another four months. The earlier deadline was March 31, RBI added.
“All residual non-CTS-2010 cheques with customers will continue to be valid and accepted in all clearing houses (including the Cheque Truncation System (CTS) centres) for another four months up to July 31, 2013, subject to a review in June 2013,” RBI said in a circular.
The regulator has asked banks to create awareness about the issue among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in Internet banking and notification on the website so that the deadline can be met.
“All cheques issued by banks (including DDs/POs) with effect from the date of this circular shall necessarily conform to CTS-2010 standard,” the circular said.
The CTS-2010 eliminates the current practice of physically presenting a cheque to the payee bank, thereby substantially reducing the time for cheque clearance.
The RBI has also said the system of post dated cheques and payment via equated monthly installment (EMI), in either the old or new format, will be banned from now wherever electronic debit facilities are available.
All cheques currently with customers in the old format (non-Cheque Truncation System) will continue to be valid for another four months. The earlier deadline was March 31, RBI added.
“All residual non-CTS-2010 cheques with customers will continue to be valid and accepted in all clearing houses (including the Cheque Truncation System (CTS) centres) for another four months up to July 31, 2013, subject to a review in June 2013,” RBI said in a circular.
The regulator has asked banks to create awareness about the issue among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in Internet banking and notification on the website so that the deadline can be met.
“All cheques issued by banks (including DDs/POs) with effect from the date of this circular shall necessarily conform to CTS-2010 standard,” the circular said.
The CTS-2010 eliminates the current practice of physically presenting a cheque to the payee bank, thereby substantially reducing the time for cheque clearance.
The RBI has also said the system of post dated cheques and payment via equated monthly installment (EMI), in either the old or new format, will be banned from now wherever electronic debit facilities are available.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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