January 2, 2015 6:51 AM

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RBI postpones decision on practice of return paid govt cheques

The Reserve Bank has postponed its decision to do away with the requirement of returning paid government cheques to concerned departments, which was to come to force from yesterday. In a release, the RBI said that the revised date would be advised shortly. Easing norms to enhance efficiency of cheque clearing system, RBI in September 2014 had said that there will be no need to return back paid government cheques to the concerned departments from January 1, 2015. Presently Cheque Truncation System (CTS) is used to clear cheques that facilitates presentation and payment of cheques without their physical movement.However, with regard to government cheques, they need to be sent back in physical form after the payment has been made to the government departments. CTS is the process in which the physical movement of a cheque within the bank, between the banks or between the banks and the clearing house is curtailed or eliminated. It is being replaced in whole or in part, by electronic records of their content for further processing and transmission.

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