RBI extends deadline for new cheques

The Reserve Bank of India (RBI) has extended the deadline for implementing the Cheque Truncation System-2010 (CTS-2010) by another three months. This is the second such extension. Banks have now been asked to ensure all cheques are compliant with CTS-2010 standards by April 1, 2013.

The earlier deadline was December 31, extended from October 1.

In a circular to banks, RBI 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 clearing but will be cleared at less frequent intervals.” It, however, indicated it might impose some fee for such cheques after March and how to do so was being discussed.

A separate communication is to be issued on this.

In CTS-2010, there is no need for physically presenting a cheque to the payee bank as is the current practice, substantially reducing the clearing time for outstation cheques.