The monetary regulator, Reserve Bank of India, has issued a notification which asks banks to stop the circulation of non-CTS cheques by March 31, this year and to replace them with the Cheque Truncation System (CTS - 2010) standard cheques. Reportedly, people have already started approaching banks to get cheque books complying to the new format.
On the matter, the Manager of Punjab National Bank, Mr. R.K. Gupta said, "Now there is no obligation to send the cheques physically as the image of the cheque is captured by the system and sent electronically. The format is standardized and the new features like the invisible logo of the bank and void pantograph help keep a check on fraudulent cheques."
Adding to this, Mr. Ravinder Yadav, the manager of Bank of India said, "More than fifty account holders request it on a daily basis."
Talking about the improved security features being offered by the new format cheques, the Senior Manager of UCO Bank, Harjot Kaur said, "CTS 2010 is surely a great technological development in the banking industry as it makes it easier for the banks to work as a group."
Talking about the process of phasing out the old format cheques, Mr. Satnam Singh, the Case Manager of State Bank of India added, "We have started issuing new cheque books and we make sure that our customers have a knowledge of the new system so that 90% of the old cheques are consumed before the notified date."