RBI Extends Deadline for Banks to Issue New Cheque Standards

The Reserve Bank of India (RBI) has extended the deadline for banks to issue new cheque formats till 31st March 2013. It is observed that, almost all banks issue only multi-city or payable at par CTS-2010-standard-cheques at present.

Taking into consideration of request for extension from various stakeholders, the RBI has decided to extend to March, next year. The earlier deadline was December 31, 2012 extended from October 1, 2012. This is the second time RBI extended the deadline.

The replacement of cheques from non-CTS-2010 standard to CTS-2010 standard will prevent frauds by facilitating the use of optical or image character recognition technology and reduce the clearing time for outstation cheques.

Source: Business Today, Business Standard