Your old cheque leaves may not be valid after December 31, 2012, as the RBI has instructed all banks to implement the Cheque Truncation System (CTS) across the country. This calls for your immediate action to make sure that your cheque book is CTS compliant.
WHAT CTS IS
Under the CTS system, the physical movement of cheques between banks will be eliminated.
Normally, when you issue a cheque to someone, he presents the cheque in his bank to get the credit.
The cheque then moves physically from his bank to your bank which involves a lot of time and risk. RBI recognised the disadvantages of this old system and brought about CTS, where instead of the physical movement of the cheque, an electronic image of the cheque is transmitted to the drawee branch.