CTS 2010 cheque (pay self or pay yourself) correction and clearing process (India)
What is the process of CTS clearing?
Cheque Truncation System (CTS) is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch. It is a step undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance.
Are 2010 CTS cheques valid?
As per guidelines, non CTS-2010 cheques issued by bank in India will be withdrawn from circulation by March 31, 2013. CTS -2010 standards cheque s issued have the following distinguishing features: The word “CTS – 2010” printed on the left side of your cheques near the perforation.
Is CTS cheque clearing system?
Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing.
Which of the following is among mandatory standard cheque security features as per CTS-2010 guidelines?
CTS-2010 Standard paper should not glow under Ultra-Violet (UV) light i.e., it should be UV dull. This shall ensure that the feel of cheques is uniform across banks. 1.3 VOID pantograph (At Printing Stage): Pantograph with hidden / embedded “COPY” or “VOID” feature shall be included in the cheques.
What is the process of cheque clearing?
Check clearing is simply a process whereby funds move from one account to another to settle a check payment. The amount is usually credited to the bank account of deposit and an equivalent amount debited at the bank from which it is drawn.
Is CTS Cheque mandatory?
The Reserve Bank of India (RBI) recently made it mandatory for all banks to implement Cheque Truncation System (CTS) in all their branches across the country by September 30, 2021.
Can I use 10 years old cheque book?
cheque validity is recently reduced by RBI to 3 months from earlier 6 months. old or new cheque book has no relevance. so if cheque is dated more than 3 months back ,you should refuse to accept,being an invalid instrument.
What type of cheques Cannot be presented in CTS clearing?
All banks providing cheque facility to their customers have been advised to issue only ‘CTS-2010’ standard cheques. Cheques not complying with CTS-2010 standards will not be cleared through CTS clearing (updated as on June 30, 2020).
Are old cheques still valid in India?
The old cheque books from Andhra Bank and Corporation Bank are valid only till June 30, 2021, it said in a communication to its customers. As per RBI directives, all old cheque books issued by branches of the erstwhile Andhra Bank and Corporation Bank would not be effective in usage from July 1.
What are the features of cheques under CTS 2010?
The following are the features of CTS 2010 cheques:
- These types of cheques are very image friendly.
- In-built with more security features.
- The IFSC Code is generally printed on the top of the cheque leaf.
- Quality of paper will be maintained.
- The bank’s logo will ideally be in a type of invisible ink.
What are the benefits of CTS 2010?
CTS 2010 Standards – Benefits
Enhanced Security Features: Gives confidence to drawee banks in image based cheque clearing leading to reduction in cheque frauds. Image Size Reduction: As compared to old cheques, revised/standardised cheque images requires less space for storage and bandwidth for transmission.
Which is the part of CTS Standard 2010?
CTS-2010 Standards Specifications issued by RBI contains Mandatory features which are minimum required security features on cheque forms and optional/desirable features, inclusion of which depends on respective bank and their risk perception subject to the features being compatible with CTS requirements. 4.
How does CTS Cheque look?
The CTS 2010 cheque has bank’s logo printed with invisible (ultra violet) ink. The logo is at the center of the cheque and can be visible in ultra violet-enabled scanners / lamps. It establishes genuineness of a cheque.
How many features does a CTS Cheque have?
2) All cheques carry standardised watermark called “CTS-INDIA” which can be seen when you held cheque against light. This feature will avoid fraudulent from photocopying or printing it. Mark will be in oval shape, and diameter of it is 2.6 to 3.0 cms. Each cheque will have atleast one full mark.
What is the difference between CTS and non CTS Cheque?
With images form of a cheque, the bank sends its information like MICR code, date of presentation, presenting bank, etc. In a CTS cheque a watermark is mention in cheque but in a non-CTS cheque, it is not available. non-CTA cheque also accepted by banks but on a frequent basis.
Which cheques are not accepted?
3) Stale and post-dated cheques: A cheque presented 3 months from the date written on it or presented before the date written on it. 4) Alterations: No alternation is permitted in the payee name, amount in words or in figures.
Is stamp required on cheque payment?
10. It does not require acceptance and stamp: Unlike a bill of exchange, a cheque does not require acceptance on part of the drawee. There is, however, a custom among banks to mark cheques as ‘good’ for the purpose of clearance. But this marking is not an acceptance.
What is CTS alteration?
For any changes in the cheque, a fresh cheque form needs to be issued. This will be applicable only for cheques cleared under the image based cheque truncation system (CTS), which is currently operational in Delhi and will be implemented across India in future.
Is correction in cheque allowed?
No changes / corrections can be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers.
What if there is a spelling mistake on a cheque?
If the mistake is in the amount, then it is better you cancel the cheque and write a new one. If the cheque is drawn towards self and presented in bank in person, you can counter sign in all the places where correction has been made and it will be passed on the counter.
Can alterations be made on a cheque?
No alternation is permitted in the payee name, amount in words or in figures. The drawer signs near it to verify any other alteration.
How do I modify a check?
Options for Presenting the Check
You could also endorse the check with the payee name as spelled, then endorse below this with the correct spelling of your name. If the payee is another person entirely, they can endorse the check over to you specifically by writing on it “Pay to the order of [your name].”
What will happen if there are erasures in a check?
Erasures or alteration on the check will make it unacceptable for clearing, even if these are countersigned by the issuer. Do not fold, crumple, staple, damage or make markings on the check that will make it hard to read.
How can I change the name on a check?
To sign a check over to someone else, sign the back of the check and, depending on the receiving bank’s rules, you’ll have to write “Pay to the order of: Name” or have the recipient sign their name under yours. Always check with the recipient’s bank to make sure it will accept a third-party check.
Can I write a check to myself?
Writing a check to yourself isn’t illegal. You’re simply starting a transaction from one bank to another using different accounts, both of which are on your name.
Can I deposit a check that is not in my name?
Ask what you need to have them write on the back of the check, and be sure to ask if you both need to be present to deposit it. Some banks require a form of ID from the other person so that they can validate the identity of who is signing over the check.