Mumbai: The Reserve Bank of India announced that it has extended the deadline for banks to ensure withdrawal on Non Cheque Truncation System (CTS) cheque till March 31, 2013.
Simply put, CTS is a process that will give banks the freedom to avoid transporting a physical cheque from the presenting bank (where the cheque is deposited) to the drawee bank (where it is issued).
As per the CTS, instead of a physical cheque, an electronic image of the cheque will be sent to the drawee bank.
Earlier this year, the apex bank had asked all banks to withdraw the non CTS cheques, and accept only those cheques which conform to new standards from 1 January.
The central bank also said in the notification posted on their website today: While most of the banks have confirmed that they are issuing only multi-city, payable at par CTS-2010 standard cheques at present, representations have been received from various stakeholders requesting for extension of the time beyond December 31, 2012 for withdrawal of non-CTS-2010 Standard cheques with CTS-2010 standard cheques.
If you are someone who has not yet gotten in touch with your bank for the CTS cheque book, it's best you do so as soon as possible because, though the non-CTS-2010 Standard cheques will be accepted as of now, if you continue to use them beyond the extended period, the cheque will be cleared at less frequent intervals.
Get in touch with you banks customer service to know more how you can apply for the new CTS -2010 cheques. Read more about CTS cheques here.