Many banks yet to embrace CTS

Monday, 21 January 2013 - 10:34am IST | Agency: DNA
Many bank officials still seem to be unaware of the cheque truncation system (CTS)-2010 which will be implemented from April 1. Following the direction from the Reserve Bank of India (RBI), the State Bank of India (SBI) had published a notice in newspapers on November 5, 2012 on CTS.

Many bank officials still seem to be unaware of the cheque truncation system (CTS)-2010 which will be implemented from April 1. Following the direction from the Reserve Bank of India (RBI), the State Bank of India (SBI) had published a notice in newspapers on November 5, 2012 on CTS.

The note stated that the bank would be issuing CTS cheques for enhancing security features of cheque forms. “Costumers should return their non-CTS cheques which will not be accepted after December 31, 2012, and apply for CTS-2010 cheques”, it said.

Responding to the notice, some customers in Hubli applied for CTS-2010 cheques. However, they were issued the same multi-city cheques (MCC) issued earlier. Besides, they were charged Rs100 for the issuance of each cheque book. When customers objected to this, the bank refunded the charges. Bank officials told them that they were unaware of the features of CTS-2010 cheques. Meanwhile, a revised notice, published on November 19 in newspapers, stated that CTS cheques were sent to customers. “After receiving the CTS cheques, customers can submit their existing cheques to the branch. If they don’t get CTS, they can approach their branch,” the notice said.


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