SBI to Implement CTS: New cheque Books to Reach Customers by 15th Dec, 2012
Mumbai: The customers of State Bank of India will receive new cheque books by 15th December, 2012. SBI is implementing the Cheque Truncation system and it is issuing new cheque books to its customers. SBI requested its customers to immediately update their latest address at their bank branches to receive cheque books in time. The bank will send the cheque books to the address which is in their records, if it is not updated.
Cheque Truncation System is a process in which the contents on the cheque will be recorded electronically so that there will be no need to move the cheques physically within the bank or between other banks. The content recorded electronically will be used for processing the cheque.
State Bank of India is the first bank to implement Cheque Truncation System. The notification for implanting the system was issued by Reserve Bank of India in December, 2011. With SBI introducing CTS, other private sector banks such as Axis Bank, HDFC bank and ICICI bank may also implement the system in their banks. The process of implement the system has already began in some banks.
SBI already requested its customers to inform the change of address to their related branch immediately. This is to ensure that they receive the new cheque books in time. The bank is not going to accept the existing cheques after 31st December, 2012. Cheque Truncation System is being implemented in to allow the processing of cheques in electronic form. This will ensure that there are will be no frauds in the processing of cheques. The electronic imaged cheques can also be cleared online in less time.
Thus the customers who do not receive new cheque books by 15th December, 2012 should approach their bank branch, officials informed. The customers need to surrender their existing cheque books to the banks. According to bank officials, few key security features are added to Cheque Truncation system. The scanned image of the cheques will be moved between banks instead of physically presenting them.