From January 2013 existing bank Cheque to become Trash

Come January your cheque books would become a useless piece of paper: Reason, the existing non-uniform standard of cheques would be taken over by standard uniform Cheque Truncation System (CTS-2010).As per the direction of the RBI all the banks operating in India including in J&K have been asked to disband the existing cheques and adopt the CTS-2010. The non-CTS-2010 cheques would be phased out by December 31, 2012 and the new standard cheques would come into operation from January 1, 2013.

The shift to the new standard, according to sources, would help reduce clearing-related frauds, remove logistics-related problems and curtail the physical movement of cheques.The new standard will speed up the process of cheque collection resulting in better service to customers. It will reduce the scope for clearing-related frauds or loss of instruments in transit, besides lowering the cost of collection and removing logistics-related problems

What is cheque truncation?

Cheque truncation system (CTS) was implemented by RBI at New Delhi Bankers Clearing House on a pilot basis. Chennai of late, too executed the same process.

Cheque truncation, according to National Payment Corporation of India (NPCI) is the process in which the physical movement of cheque within a bank, between banks or among banks and the clearing house is curtailed or eliminated, being replaced in whole or in part, by electronic records of their content (with or without the images) for further processing and transmission.

Courtesy : http://satirur.blogspot.in/