What is cheque and Cheque Truncation System 2010


What is Cheque – It is a type bill of exchange as per Negotiable Instruments Act 1881. Cheque is drawn on a specified bank or A cheque is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued. In simple language we can say that we may provide a cheque (A bill of exchange) to someone to get money from the Bank. Basically three people are included to draw a cheque as following:

1-Drawer-Drawer is person whom account will be debit after payment or the account holder who give the cheque.

2-Drawee-The bank who draw the cheque means the person has the account in that bank.

3-Payee– Payee is the person whose name is written on the cheque or who receive the money after the payment of cheque from bank.

Type of cheque(based on Date)

1-Anti Dated Cheque-A cheque which bear the prior date from the date of signing by the drawer.  For example- A cheque has a date of 20 January 2015 and signed on 5 February 2015 or drawer account will be open 6 February 2015.

2-Post Dated Cheque –A cheque which bear the upcoming date from the actual date of signing the cheque. For example-a cheque has a date of 10 march 2015 and signed on 5 february 2015.

3- Stale Cheque– A cheque whose validity has been expired and is presented in bank after expire date.

  • In case of post dated cheque, drawer stop the payment during the period of dates.
  • Validity of cheque- 3 Months
  • A stale cheque can be re validated any number of times.


Cheque Truncation System 2010 (CTS-2010)

Cheque truncation means the process of handling cheques physically stopped and the image of cheque is sent to a common platform for clearing.

There are many features in CTS-2010 standard related to cheques-

1-Paper must be chemical sensitive.It should react instantly if any chemical is applied on cheque for any alteration.

2-cheque will carry a water mark with the words “CTS INDIA”.

3-Void pantograph must be on cheque. When anyone make a photocopy of cheque then photocopy will carry word ‘VOID’ on the place of void pantograph.

4-There should be bank logo on cheque printed in UV ink.

5-There should be micro lettering on the cheque in the form of bank name.

At last all the best to all aspirants. If you believe in yourself then you can definitely achieve any goal which you want. So always try to put all your strength to achieve your goal as soon as possible. We will also try our best to help you in any circumstances. So always feel free to share anything with us.


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