Mumbai, Nov 6 (KNN) In a move to standardise and enhance security features on cheque leaflets, the Reserve Bank of India (RBI) has asked all Non-bank financial companies (NBFCs) to ensure replacement of all old system bank cheques with new ones, with added security features for their EMI payments.

RBI had introduced Cheque Truncation System (CTS) 2010, with a set of minimum security features to ensure uniformity across all cheque forms issued by banks and also help presenting banks while scrutinising and recognising cheques of drawee banks in an image-based processing scenario.

“…with a view to avoid delays in realization of non-CTS-2010 cheques, all NBFCs have been advised to migrate towards accepting only CTS-2010 standard cheques,” Reserve Bank of India (RBI) said in notification.

In a circular, RBI had said that it has decided to extend the time for NBFCs up to March 31, 2013 "to ensure withdrawal of Non-CTS 2010 Standard compliant cheques and replace them with CTS-2010 Standard compliant cheques".

The central bank had asked all banks to migrate to 'CTS-2010' standard cheques by December 31, 2012, which was later extended till March 31, 2013.

In keeping with this, NBFCs accepting cheque payments for future instalments from their customers were asked to get it replaced with the new standard cheques.  (KNN/SD)