FLAT 20% OFF and 3-Months ADDED Validity on All Courses Absolutely FREE! Enroll Now Use Code: INDIA20
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

GS kalyan Advocate   26 June 2020

Non CTS cheque law

Legal validity of non CTS cheque in 2018 or some RBI notification


 5 Replies

Sampada Sharma   26 June 2020

In 2018, many public sector and private sector banks issued a notice for customers to replace their non CTC complaint cheques with the CTS -2010 standard cheques.The prople who fail to get their old cheques replaced by december 31st, 2018 will not be able to get their old cheques clear as separate clearing of non - CTS cheques will be dicontinued from decmeber31, 2018.

On septmeber 5, 2018 rbi issued the directions about the same.

P. Venu (Advocate)     27 June 2020

You have not posted the material facts.

G.L.N. Prasad (Retired employee.)     27 June 2020

A cheque is a cheque as defined under the Negotiable Instrument Act.  The presentation can be made in many ways like 1.through clearing 2.By post 3or through  Bank (Some times even the customers act as a messenger and carry such schedule).  As clearing is automated through magnetic character recognition  (MICR) , Non-MICR cheques are not accepted for clearing   In those cases, a cheque can be presented by the bank through process of Local bill collection (LBC) or (Outward Bill collection).  If it is local, the collecting banker may send that cheque through messenger for collection to paying banker.  A paying banker has to perform his obligations as per NIA, and he should not say that non-MICR cheques can not be paid, present it through clearing etc., as there is no such stipulations in NIA.  A banker can reject payment of cheque as per the cheque return schedule only and as prescribed by Bank Manual. and NIA.

smart jain   02 July 2020

visit to get more info..

G.L.N. Prasad (Retired employee.)     02 July 2020

That article is not relevant to the present issue and not even touches the issue.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query