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:

1.  How to identify a CTS '2010' compliant cheque

2. Apply for new cheque book if the current cheque book you have, was issued before Aug 2011.