NEWS & ADVICE : FIXED DEPOSITS
PSBs lack hardware to issue cheque books conforming to CTS-2010
By Neelima Shankar
Dec 27, 2012
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Even though the monetary regulator, Reserve Bank of India, has directed banks to issue cheque truncation system (CTS- 2010) complaint cheque books by May 2013, many public sector banks still lack the required hardware to issue them.

According to the cheque truncation system, an electronic picture of the cheque is provided to the drawee bank, which further processes the cheque for clearance. This system ensures faster processing and clearance of cheques and also ensures improved security features in cheques.

The central bank had initially set the deadline for banks to replace old cheques with new CTS-2010 complaint cheques by January 2013, which it later extended by three months.

On the matter, the CEO of National Payments Corporation of India Mr. A. P. Hota said, "Given the vast customer base of public sector banks, it is taking time to replace the old format cheques with new cheques." It should be noted that almost all private sector banks have already started using the CTS complaint cheques. On this, Hota said, "Different banks have different procurement procedures. Some have floated tenders, while some are evaluating the tenders."

Reportedly, the deadline by which banks have to completely migrate from the old format cheques to the new format cheques is December 2013.


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