Page 48 - Banking Finance October 2019

FEATURE

THREE THINGS
THREE THINGS
THREE THINGS
THREE THINGS
THREE THINGS
TO KNOW IF
TO KNOW IF
TO KNOW IF
TO KNOW IF
TO KNOW IF
YOU STILL
YOU STILL
YOU STILL
YOU STILL
YOU STILL
USE CHEQUES
USE CHEQUES
USE CHEQUES
USE CHEQUES
USE CHEQUES
T he Indian financial landscape has a variety of superior verification process, among other things, non-CTS
payment and fund transfer modes now-from
cheques will soon become redundant."
cash, to debit and credit cards to mobile apps like
Paytm-but for most of us, cheques remain an
you are issuing or receive is CTS 2010-compliant. There are
integral part of our money lives. According to a Reserve If you don't want any delay in clearing, ensure the cheque
Bank of India (RBI) report, India's cheque volumes declined several ways to identify a CTS 2010-compliant cheque. It will
only by 10.8% between 2012 and 2017, though the apex have the bank's logo printed in ultra violet ink and a special
bank does expect the volumes to go down drastically by pattern (waves) called Pentograph printed on it. If you make
2021. a coloured photocopy of the cheque, the word "Void" will
appear. "CTS 2010" is printed near the perforation (the place
While traders and small businesses still conduct a lot of their where you tear the leaf from the book), the rupee symbol
transactions through cheques, seniors, who are not so is mentioned in the numerical amount box, and there is a
comfortable with mobile-based apps and other digital signature space indicator. Use dark-coloured ink to write the
modes, too prefer them. In fact, even the savvy ones can't cheque as light coloured ink will not get scanned properly.
really do away with using them as cheques are still accepted
by a lot of educational and other institutes, including Types of cheques
financial ones that ask for a "cancelled" cheque before you
Crossed cheque: This type of cheque ensures the money is
make an investment. Here are three things all cheque users
credited into the account of the person or entity in whose
need to know.
favour the cheque is issued. To cross a cheque you have to
draw two parallel lines on the left-hand upper corner of the
Digital cheques leaf. It is preferable to write "account payee" or "non-

You may be using a physical cheque book, but at the back- negotiable" along the lines.
end, banks have moved on to what's loosely called digital
cheques under the cheque truncation system (CTS). Thanks Bearer cheque: Here, the payment is made to the person
to the system, banks are spared the task of transporting a who is acting on behalf of the beneficiary in whose favour
physical cheque from the presenting bank (where the cheque the cheque is issued. The word "bearer" has to be written
is deposited) to the drawee bank (where it is issued). on the cheque and these are risky in nature. If they fall into
wrong hands, you may lose your money. Recovering this
Naveen Kukreja, CEO, Paisabazaar.com, a loan aggregator, money may involve several steps, including filing a police
said, "Currently, all banks are issuing CTS-compliant cheques complaint.
to customers. With CTS system offering higher benefits in
the form of shorter clearing cycle, nil collection charges, Order cheque: Here, the payment is made to a specified

48 | 2019 | OCTOBER | BANKING FINANCE