Migration to CTS 2010 standards- Cheque Book

Its March, farewell to your old cheque books,While we have already informed by our banks  about the Reserve Bank of India (RBI) Circular dated September 03, 2012 regarding 'Standardisation and Enhancement of Security Features in Cheque Forms, this write up is just a call/reminder to you.

Banks have been instructed by the RBI to issue only multi-city/payable at par CTS-2010 standard cheques after September 30, 2012.

While all banks were advised to ensure the replacement of non-CTS-2010 Standard cheques with CTS-2010 standard cheques before December 31, 2012, it was decided to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques.

How to identify a CTS '2010' compliant cheque?

  1.  Bank's logo printed with invisible ink
  2.  Void pantograph
  3.  Cheque printer details/CTS - 2010
  4.  Rupee symbol
  5.  Signature Space Indicator

 

Does it impact on our Loan EMI or SIP investmentrs?What's in it for us as a Mutual Fund Investor?

The answer to the above two questions are, for the first yes,it will then you need to replace your old cheque's to the new CTS-2010 compliant Cheque's

 

It means if you have issued  any post-dated cheques (Non 'CTS 2010') issued by you for your loans and EMI repayments to be presented after March 31, 2013 will need to be replaced by the fresh cheques meeting the above mentioned guidelines.

and for the answer of 2nd question is the non CTS cheque's will not be accepted by the investor house.
Read carefully

  •  We would request you to note that effective March 31, 2013 you would not be able to purchase
      into the Schemes of a Mutual fund with non CTS 2010 standard cheques.
  •  In case of investors who have submitted post-dated non-CTS 2010 standard cheques dated 1st April,
      2013 onwards for your Systematic Investment Plan (SIP) investments, then you need to replace them
      with CTS-2010 standard cheques before March 31, 2013. Depending on the Fund House procedure, the
      cheques earlier submitted to the fund house may be forwarded by courier to your address registered in
      the records.

For this you need to submit a written request to the mutual fund house mentioning your folio number, scheme details and SIP details along with the CTS 2010 standard cheques of the respective SIP due date. (Please check the process with your respective fund houses)

 

Now next question you need to ask that what is is a void pantograph.?

A pentograph  screen that has "void" word hidden on it, created by using special screen and background design on it. when a color copier photograph it  the word void will appear on the documents. The most important thing about the VOID Pentograph is that it is difficult to falsify it comparative to the normal pento graph.

  Please read the below links for specification and additional details as prescribed by RBI on "CTS-2010 Standard Cheques and the sample image of a CTS 2010 standard cheque

 

 

 

 

Link1:http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=7753 

 Link2:http://rbidocs.rbi.org.in/rdocs/content/PDFs/SCFR220210.pdf

 Link3:http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/CTS141212MCS.pdf