If your chequebook is not compliant with RBI's cheque truncation system (CTS), implemented from October 1, it may be invalid from January 1, 2013.
Yeah! That's right!
Cheque books and/or cheques issued by the Banks that are not compliant with RBI's cheque truncation system (CTS), implemented from October 1 shall no longer be valid from January 1, 2013 onwards.
Banks across the country have been instructed to recall and replace such cheques and cheque-books before the deadline–a task, supposedly being carried out on a war footing.
CTS simply means cheques that have features like IFSC and MICR. It is of course a safer, more secure system and most new generation private sector banks have already complied with these norms. Its the State owned Banks (as always) who are lagging behind and hence, rushing to meet the deadlines.
The consumers are being informed through notices pasted on Branches and ATM kiosks. Some banks are also providing the new cheque-books at the doorsteps of the consumers.
While this is definitely a desirable amendment for security purposes, the fate of the post-dated cheques that are not compliant with the norms but have already been issued for dates after January 1, 2013 hangs undecided.
Whether the banks will decide to honour such cheques or not remains to be seen, though going by the current positioning of RBI with respect of these norms, chances seem pretty bleak.
If you are a consumer of a State owned bank in the country, do make sure that you have the correct cheque book or have it replaced. Contact the nearest Branch immediately.
Agreed that banks are trying to ensure that transition is smooth for the consumers, but we know that plenty of things fall through the cracks–especially in the consumer world.
We wouldn't want you to be the one falling through the cracks. Would we?