If you are a Punjab National Bank customer and deals in cheques, then this news is just for you. Those PNB customers who still have non-CTS compliant cheques, will not be able to make payments through the cheques from January 2019. The new CTC compliant cheques are easier and safe and the Reserve Bank had asked banks to get rid of the non-CTS cheques.

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The bank has asked its customers to get their non-CTS compliant cheques replaced. This is because these cheques will not be accepted for clearance in the banking system from January.

"Get your non-CTS cheque book replaced immediately," it said.

What is CTS? 
The Cheque Truncation System (CTS) is a process of stopping flow of physical cheque in which an electronic image of the instrument is presented when it comes for clearing. 

This eliminates the cost of movement of physical cheques and reduces the time for clearance for better delivery of services to customers.

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As per RBI, banks are advised to issue only CTS-2010 standard cheques to their customers. However, banks had been advised by RBI to not charge a customer for the new CTS-2010 standard cheque while issuing it for the first time. 

"Banks shall not charge their savings bank account customers for issuance of CTS-2010 standard cheques when they are issued for the first time," the central bank had said.

The guidelines for CTS-2010 standard cheques were issued way back in 2010. Since then, the deadline for replacing non-CTS cheques with CTS-compliant cheques had been revised many times. However, it is now unlikely that the RBI will go beyond January 2019 deadline.