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It might happen that your cheque’s start bouncing and do not get accepted from Jan 1, 2013 . There is a new standard in banking called as Cheque Truncation System or CTS 2010 , which all the banks have to follow now. RBI has issued a circular telling all banks that they should only process and accept those cheques which follow CTS guidelines.
What is Cheque Truncation System or CTS?
Its just a new improved structure for chqeues and a set of guidelines which will change the way cheques are being processed and cleared. Right now, all the cheques are sent directly physical to the other bank for clearance, but with this new Cheque Truncation System guidelines, the banks will send the digital version of cheques (read scanned image) to the other bank and the clearance will happen almost same day or very fast. Some of the features of CTS cheques would be
- It would have the wordings “please sign above this line” at right bottom
- All CTS-2010 cheques will have a watermark with the words “CTS INDIA”, which can be seen against a light.
- A bank logo will be on cheque with a Ultra Violet Ink , which can be seen only under UV Scanners
- The CTS 2010 enabled cheques will not allow any alterations. If there is any mistakes, the cheque will be invalid
- “payable at par at all branches of the bank in India” text will be at the bottom of all the cheques
- There will be IFSC and MICR code on the cheque
- You will have to sign the cheque will a darker ink, so that your signatures are valid for scanning.
If you look at these features, you can simply see that these are required for digital processing and once these Cheque Truncation System enabled cheques arrive , the whole banking system will start clearing the cheques in a must faster time. This will improve banking and save paper . Below is a sample of cheque which fulfil CTS criteria’s.
SBI has already told all its customers to get new cheques because all the old cheques will become invalid , In the same way HDFC bank and ICICI bank have also told their customers to get new cheque books.
What you must do ?
1. Replace your Post Dated Cheques
If you have given any post dated cheques to someone like for your home loans payments or for some other kind of payment, then its the time to replace them with fresh cheques else it will just bounce and you might have to pay the bounce charges
Deposit any Old Cheque now
At times, we accumulate old cheques and deposit them for clearing only after many days or weeks. If you have any cheque which is to be cleared, better deposit it and encash !
A lot of banks have also asked its customers to give return back the old invalid cheques at their branch and collect new cheques, not sure why they need old cheques , why cant they issue the new cheques directly ? Also note that the cheques will be sent to the last updated address only. Learn more about CTS here. I hope you are clear about Cheque Truncation System (CTS) and how your cheques will become invalid from Jan 1,2013.
RBI Notification
Standardisation and Enhancement of Security Features in Cheque Forms-Migrating to CTS 2010 standards.pdf
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True to the core... Worth to read and share
Hello Friends,
I have to share a few things I learnt after Mithun's death.
We always believe we will live forever. Bad things always happen toothers. Only when things hit us bang on our head do we realise. Life isso unpredictable. .
My husband was an IT guy. All techie. And I am a chartered accountant. Awesome combination you may think.
Techie guy, so everything is on his laptop; his to do list; his e-bill and his bank statements in his email. He even maintained a folder which said IMPWDS, wherein he stored all login id and passwords for all his online accounts. And even his laptop had a password. Techie guy, so all
the passwords were alpha-numeric with a special character not an easy one to crack. Office policy said passwords needed to be changed every 30 days. So every time I accessed his laptop I would realise it's a new password again. I would simply opt for asking him 'What's the latest password' instead of taking the strain to memorise it.
You may think me being a Chartered Accountant would mean everything is documented and filed properly. Alas many of my chartered accountant friends would agree that the precision we follow with our office documents and papers do not flow in to day to day home life. At office
you have to be epitome of Reliability / Competent / Diligent etc., but at home front there is always a tomorrow.
One fine morning my hubby expired in a bike accident on his way home from office. He was just 33. His laptop with all his data crashed. with everything on his hard disk wiped off. No folder of IMPWDS to refer back to. His mobile with all the numbers on it was smashed. But that was just
the beginning. I realised I had lot to learn.
9 years married to one of the best human beings, with no kids, just the two of us to fall back on..but now I stood all alone and lost. Being chartered accountant helped in more ways than one, but it was not enough. I needed help. His saving bank accounts, his salary bank accounts had no nominee. On his insurance his mom was the nominee and it was almost 2 years back she had expired. but this was just a start.
I didn't know the password to his email account where all his e-bill came. I didn't know which expenses he paid by standing instructions. His office front too was not easy. His department had changed recently. I didn't know his reporting boss' name to start with. When had he last
claimed his shift allowance, his mobile reimbursement. The house we bought with all the excitement on loan, thought with our joint salary we could afford the EMI. When the home loans guys suggested insurance on the loan, we decided instead of paying the premium, the difference in the EMI on account of the insurance could be used to pay towards prepayment of the loan and get the tenure down. We never thought what we would do if we have to live on a single salary. So now there was huge EMI to look into.
I realised I was in for a long haul.
Road accident case, so everywhere I needed a Death certificate, FIR report, Post Mortem report. For everything there were forms running into pages, indemnity bonds, notary, surety to stand up for you. no objections certificates from your co-heirs..
I learnt other than your house, your land, your car, your bike are also your property. So what if you are the joint owner of the flat, you don't become the owner just because your hubby is no more. So what if your hubby expired in the bike accident and you are the nominee but if the bike is in a repairable condition, you have to get the bike transferred in your name to claim the insurance and that was again not easy. The bike or car cannot be transferred in your name without going through a set of legal documents. Getting a Succession Certificate is
another battle all together.
Then came the time you realise now you have to start changing all the bills, assets in your name. Your gas connection, electricity meter, your own house, your car, your investments and all sundries. And then change all the nominations where your own investments are concerned. And again a start of a new set of paperwork.
To say I was shaken, my whole life had just turned upside down was an understatement. You realise you don't have time to morn and grieve for the person with whom you spend the best years of your life, because you are busy sorting all the paper work.
I realised then how much I took life for granted. I thought being a chartered accountant I am undergoing so many difficulties, what would have happened to someone who was house maker who wouldn't understand this legal hotchpotch.
A sweet friend then told me dear this was not an end. You have no kids. Your assets will be for all who stand to claim after my hubby's sudden death. I realised it was time I took life more seriously. I now needed to make a Will. I would have laughed if a few months back if he had asked me to make one. But now life had taken a twist.
Lessons learnt this hard way were meant to be shared. After all why should the people whom we love the most suffer after we are no more. Sorting some paperwork before we go will at least ease some of their grief.
1. Check all your nominations
It's a usual practice to put a name (i.e in the first place if you have mentioned it) and royally forget about it. Most of us have named our parent as a nominee for investments, bank accounts opened before marriage. We have not changed the same even years after they are no longer there with us. Even your salary account usually has no nomination.. Kindly check all your Nominations.
- Bank Accounts
- Fixed Deposits, NSC
- Bank Lockers
- Demat Accounts
- Insurance (Life, Bike or Car or Property)
- Investments
- PF & Pension Forms
2. Passwords..
We have passwords for practically everything. Email accounts, Bank accounts, even for the laptop you use. What happens when your next in kin cannot access any of these simply because they do not know your password. Put it down on a paper.
3. Investments.
Every year for tax purpose we do investments. Do we maintain a excel sheet about it. If so is it on the same laptop of which the password you had not shared? Where are those physical investments hard copy?
4. Will.
Make a Will. I know you will smile even I would, had I not gone through all what I did. It would have made my life lot easier, a lot less paperwork. I wouldn't have had to provide an indemnity bond, get it notarised, ask surety to stand up, no objections certificates from
others.
5. Liabilities.
When you take a loan say for your house or car check out on all the what ifs; what if I am not there tomorrow? what if I loose my job? Will the EMI still be within my range? If not get an insurance on the loan.The people left behind will not have to worry on something as basic
as their own house.
My battles have just begun. But let us at least try and make few changes so that our loved ones would not suffer after we go. We do not know what will happen in the future. But as the Scout motto goes:
"Be prepared"
- NAME WITHHELD
source:online
image source:http://www.trubalcava.com
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