The Reserve Bank of India (RBI) today asked non-banking financial companies (NBFCs) to replace post-dated cheques issued to them by customers with new standardised cheques with improved security features.
NBFCs accept post-dated cheques from their customers for future monthly installment payments. For the purpose of standardisation and enhanced security features, the banks have been told by RBI to migrate to the 'CTS 2010' standard by December 31, 2012.
The non-CTS cheques would be out of circulation from December 31, 2012 and will not be acceptable at clearing system of the banks as well.
"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," RBI said in a notification.
'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 and standardisation of field placements on cheques.
RBI further asked NBFCs to 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.