Now, you may use your old cheques till March 2013

Banks will have to roll out cheques compliant to CTS-2010 standards from April 1 next year

The Reserve Bank of India (RBI) has extended the deadline of implementing Cheque Truncation System-2010 (CTS- 2010) cheques by another three months. This was the second time the deadline is extended by the regulator.

The banks now have been asked to roll out cheques compliant to CTS-2010 standards by April 1, 2013. Earlier, the deadline for the implementing the same was December 31, 2012.

The earlier deadline to roll out the CTS-2010 compliant cheques was October 1, 2012 which was extended to December 2012.

RBI in its circular to the banks also said, “Residual non-CTS-2010 standard cheques that get presented in the clearing system beyond this extended period (March 2013) will continue to be accepted for the clearing but will be cleared at less frequent intervals."

This means the non-CTS-2010 compliant cheques will take more time for the clearing beyond March 2013.

The central bank, however, indicated that it might impose some kind of fees for such cheques after March 2013.

The banking regulator said, the modalities are being discussed with all stakeholders and it will issue a separate communication in this regard. One of issues is should there be some kind of charges levied against non-CTS-2010 complaint cheques.

The CTS-2010, there is no need of physically presenting a cheque to payee bank as it is the current practice which will substantially reduce the clearing time of outstation cheques.