Sunday, December 30, 2012

Why you need to apply for a new cheque book

Considered to be a major milestone in the history of Indian banking, Cheque Truncation System (CTS) aims to make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby trimming down the floating time considerably. India processes as many as 1.2 billions cheques annually and therefore, the implementation of this system would drastically cut down the waiting period involved. The system will be implemented nationwide from April 1, 2013.

How does it work?

An online image-based cheque clearing system, the collecting bank branch would deploy scanned images along with the magnetic ink character (MICR) of the cheque which will be sent out electronically using their Capture System, removing the need for physical/manual transfer of cheques. The captured images and the data is then signed and encrypted and sent to the Clearing House or the central processing location and thereafter forwarded to the drawee or paying bank.

This helps speed up the cheque collection process that eventually helps provide better and faster customer service.

Key Features of Cheque Truncation System
  • User friendly graphic user interface
  • Automated coding and endorsing of cheques
  • Encryption of data file before transmission to the clearing house or the service branch
  • Employs a unique transaction follower process to confirm the status of cheque
  • Improved and efficient settlement and prevention of fraud
  • Equipped with enhanced archival procedure that stores images and data facilitating report generation along with future enquiry
  • Alerts RMs in case of return of cheque due to insufficient funds

Impact of CTS on Customers

Handling of EMIs with the Introduction of CTS

In cases where customers have issues post-dated cheques (PDC) for payment of monthly installments towards an ongoing loan, they would need to issue fresh cheques to the bank or service provider as per the new directive on CTS by the RBI. The replacement of these cheques needs to be done latest by April 1, 2013 and is applicable on all banks and NBFCs.

Encashment of Old Cheques

Customers may need to surrender their old cheque books or cancel them and show proof of cancellation. No replacement fee will be charged by the bank for issuing new cheque books

Apart from these aspects, the system does not, in any way, affect the way things function for a customer. They would continue using cheques as they do currently; however, cheques that have been altered or modified will not be permissible under the new system. The other precautions that need to be taken while issuing or writing a cheque are:

  • Ensure that all details are clear and readable, using black or blue ink
  • Write the name of the payee, amount and the date and sign the cheque correctly.
  • In case you use seals on the cheque, ensure that they are imprinted in a manner that they do not mask or hide the other important fields of the cheque.

Benefits of CTS for Customers

There are many benefits of the cheque truncation system from the perspective of a customer.

  • Clearance cycle gets shortened - As this system is being implemented, the physical or manual movement of cheques for clearance has ceased. With cheques being transmitted electronically, the settlement process becomes quicker, facilitating reduction in the clearance cycle.
  • The fear of loss of cheques during transfer from the collecting bank to the drawee or payee bank is eliminated.
  • Limitations of the current clearance system with respect to jurisdiction and geography are eradicated. This enables integration and consolidation of several clearing locations across various banks offering different service levels into one standard clearance system applicable throughout the country.
  • CTS helps reduce the scope of fraud significantly. Moreover, the electronic transmission is quick and allows early detection of fraud or any alteration with respect to the payee, amount or the issuer of the cheque. CTS prescribe minimum security features under ‘CTS-2010 standards’ along with superior verification process that further facilitates in the reduction of frauds.
  • The operational efficiency of both the bank as well as the customer is enhanced with the introduction of this system.

Monday, December 24, 2012

One more new spam on Facebook now via Instagram!!

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Saturday, December 22, 2012

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Saturday, December 1, 2012

Watch what you say on social media, say lawyers

To avoid hassles while using the social media network, lawyers say social media users should exercise 'some level of care and caution'.
High court lawyer Jamshed Mistry said, "On a larger social platform, one has to ensure that he/she does not put up content that is blasphemous or abusive in nature.
It is better to err on the side of caution."
He, however, added, "The principle of natural justice demands that a person who has put up a comment on a networking site be allowed to give an explanation for it. You cannot immediately book and arrest a person after a complaint, as it would be short-circuiting the procedure of law."
He said, "If the issue is not handled with care, maybe the time will come when one would need to put up a disclaimer with every post on a networking site."
Lawyer Arfan Sait said, "While Article 19 of the Constitution gives you freedom of speech, it is not absolute and has some limitations."
He said, "While putting up something on a networking site, one needs to have basic civic sense and social sensitivity. Also, youngsters should be given basic training about the Information Technology Act that will help them know what content can land them in trouble."
IPS officer turned lawyer YP Singh said that while on most occasions there is 'abusive discretion' - where a complaint is filed for some ulterior motive - something that cannot be stopped, when it comes to objective discretion, one has to tread carefully while putting up something about a religious community or caste.
"There are issues such as religion, caste or even jokes of a sexual nature that need to be handled carefully. One should refrain from using abusive or filthy words on social forums. Also, care should be taken to not share unfounded information or sexually explicit content," Singh added.

Published by HT Syndication with permission from Hindustan Times.

Source: Yahoo India News