RBI/2012-13/280
DNBS.PD/CC.NO.308/03.10.001/2012-13

November 6, 2012

All NBFCs

Dear Sir,

Standardisation and Enhancement of Security Features in Cheque Forms - Migrating to CTS 2010 Standards

"CTS-2010 standard“ is a set of benchmarks towards achieving standardisation of cheques issued by banks across the country. These include provision of mandatory minimum security features on cheque forms like quality of paper, watermark, bank's logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques. The benchmark prescriptions known as "CTS-2010 standard“ are to be implemented by December 31, 2012.

2. NBFCs accept post dated cheques from their customers for future EMI payments, and some of such instruments may not be compliant with the CTS-2010 standard. NBFCs are, therefore, required to ensure the replacement of Non–CTS-2010 standard compliant cheques with CTS-2010 standard compliant cheques before December 31, 2012.

3. The above instructions are issued in terms of Section 45 JA and 45K of the Reserve Bank of India Act, 1934 (Act 2 of 1934).

4. Please acknowledge receipt and confirm to the Regional Office of the Bank that a plan has been put in place for implementing the "CTS-2010 standard" within the prescribed timeline.

Yours sincerely,

(Uma Subramaniam)
Chief General Manager-in-Charge