Tuesday, December 11, 2012

How Non CTS 2010 Standard cheques will affect your Mutual Fund Investment!



As you all know Non CTS 2010 Standard cheques will not be allowed from January 1, 2013

How it will affect your mutual fund Investment!

With effect from December 31, 2012 (as cheque will go for clearance on next day, that is jan 1, 2013) you would not be able to purchase any mutual fund scheme with non CTS 2010 standard cheques.

In case you have submitted post-dated non-CTS 2010 standard cheques dated 1st January 2013 onwards for your Systematic Investment Plan (SIP) investments in any mutual fund scheme, please replace them with CTS-2010 standard cheques before 31/12/2012.

 If you have opted for ECS instruction in your mutual fund SIP, it will not affect you as this applies to those post dated cheques which are not as per "CTS 2010 Standard Cheques."

Why Non CTS 210 Standard cheques will not be allowed after Jan 1, 2013:

This is with regard to a notification (RBI/2012-13/190 DPSS.CO.CHD.No. 399/04.07.05/2012-13 dated September 3, 2012) issued by The Reserve Bank of India regarding Standardization and Enhancement of Security Features in Cheque Forms - Migration to CTS 2010 standards which has directed all banks to issue only multi-city / payable at par CTS-2010 standard cheques. It has also directed all banks to withdraw the non-CTS-2010 Standard cheques in circulation before December 31, 2012. To identify a CTS-2010 compliant cheque, please check if the letters "CTS-2010" have been printed vertically on the left side of the cheque leaf. 

 You can  also refer:

How to identify a CTS '2010' compliant cheque


As per RBI Guidelines on 'Standardisation and Enhancement of Security Features in Cheque Forms' banks have been advised to issue only 'CTS 2010 Standard' cheques to their account holders. 


RBI vide its circular dated September 3, 2012 has now advised Banks to withdraw non-CTS 2010 standards cheques in circulation before December 31,2012.

Reserve bank of India standardize and increase the security features of the cheque book. This is called CTS 2010 Standard Cheques. This include quality of paper, ink, bank logo and pantograph etc. If the cheques you currently hold have the following features, they will be valid after the given date.

  
  How to identify a CTS '2010' compliant cheque
 
1. Bank’s logo printed with invisible ink
2. Void pantograph
3. Cheque printer details/CTS- 2010
4. Rupee symbol
5. Signature Space Indicator





Update Jan 2013
Extension on RBI notifications about CTS 
(Cheque Truncation System ) 2010 Standards on cheque stationery


This is in continuation to our email dated 10.12.2012 regarding RBI notifications on CTS (Cheque Truncation System) 2010 Standards on cheque stationery.  As per the circular dated 14.12.2012 received from RBI, the CTS 2010 standard Cheques will now be mandatory from 01.04.2013 instead of 01.01.2013.





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