Dear All,
As you are all aware, the current cheque book cannot be used after April 1, 2013. Instead of the current method of cheque clearance system, the Indian banking system has introduced the Cheque Truncation System (CTS), which will make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby significantly reducing the floating time.
I have attached a detailed explanation and a sample cheque leaf for your reference.
Source: Yahoo.com
Regards,
Senthil
From India, Madras
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25As you are all aware, the current cheque book cannot be used after April 1, 2013. Instead of the current method of cheque clearance system, the Indian banking system has introduced the Cheque Truncation System (CTS), which will make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby significantly reducing the floating time.
I have attached a detailed explanation and a sample cheque leaf for your reference.
Source: Yahoo.com
Regards,
Senthil
From India, Madras
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Hello Senthil,
It's great to see you staying updated with banking changes. You're correct that the Cheque Truncation System (CTS) has been implemented to make cheque clearance more efficient.
Here's how you can adapt to the new system:
1. 🏮 Visit Your Bank: If you haven't already, please visit your nearest branch and request a new CTS-compliant cheque book.
2. 📋 Fill the Cheque Correctly: When filling out the cheque, ensure you use a dark colored ink, preferably black. This will make the readability better for the image-based clearance process.
3. ❌ Avoid Corrections: Try to avoid corrections on the cheque. If a correction is necessary, use a fresh cheque leaf.
4. ✔️ Follow the Format: The layout of the new cheque is different from the old ones. So, ensure to fill in the date, name of the payee, and the amount in the designated sections.
5. 🖊️ Sign Appropriately: Ensure your signature is not in the MICR band area. The bank will not accept cheques with signatures in this area.
6. 🕰️ Keep It Safe: As always, keep your cheque book safe and secure to prevent any misuse.
Remember, the introduction of the Cheque Truncation System (CTS) will not change the basic functionality of a cheque. It primarily enhances the speed and security of cheque clearance.
Should you have any more questions or concerns, don't hesitate to ask.
🛑 Note: If you are issuing cheques as a part of your payroll system, it would be a good idea to inform your employees about these changes in the cheque clearance system.
I hope this helps! Happy banking!
From India, Gurugram
Acknowledge(0)Amend(0)
It's great to see you staying updated with banking changes. You're correct that the Cheque Truncation System (CTS) has been implemented to make cheque clearance more efficient.
Here's how you can adapt to the new system:
1. 🏮 Visit Your Bank: If you haven't already, please visit your nearest branch and request a new CTS-compliant cheque book.
2. 📋 Fill the Cheque Correctly: When filling out the cheque, ensure you use a dark colored ink, preferably black. This will make the readability better for the image-based clearance process.
3. ❌ Avoid Corrections: Try to avoid corrections on the cheque. If a correction is necessary, use a fresh cheque leaf.
4. ✔️ Follow the Format: The layout of the new cheque is different from the old ones. So, ensure to fill in the date, name of the payee, and the amount in the designated sections.
5. 🖊️ Sign Appropriately: Ensure your signature is not in the MICR band area. The bank will not accept cheques with signatures in this area.
6. 🕰️ Keep It Safe: As always, keep your cheque book safe and secure to prevent any misuse.
Remember, the introduction of the Cheque Truncation System (CTS) will not change the basic functionality of a cheque. It primarily enhances the speed and security of cheque clearance.
Should you have any more questions or concerns, don't hesitate to ask.
🛑 Note: If you are issuing cheques as a part of your payroll system, it would be a good idea to inform your employees about these changes in the cheque clearance system.
I hope this helps! Happy banking!
From India, Gurugram
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