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Posted on Dec 15, 03:30PM | UNI
Bank account holders can use their old format cheques for another three months, as Reserve Bank of India (RBI) has extended the deadline for banks to issue new cheques with uniform security features till March next year.
In a notification issued by Reserve Bank of India (RBI) has asked banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques by March 2013.
It had earlier fixed December 31 as the last date for phasing out non-CTS (Cheque Truncation System) cheques.
The homogeneity in security features of CTS 2010 standard cheques will act as s deterrent against frauds, and the fixed field placement specifications facilitate straight-throughprocessing at drawee banks end through the use of optical or image character recognition technology.
The introduction of new cheque standards was warranted on account of several developments in the cheque clearing system, namely growing use of multi-city and payable-at-par cheques at any branch of a bank, increasing popularity of speed clearing for local processing of outstation cheques and implementation of grid based CTS for image-based cheque processing etc, it added.