DD Cheques Validity.Old Cheques Not Valid From Jan 2013

New Cheque Format in India from I January 2013

State Bank of India (SBI), the country’s largest lender, came out with an advertisement in all major national dailies on 5 November, stating that it will issue a new set of cheque book to its customers and that the existing cheque leaves will not be valid after 31 December 2012.

The Reserve Bank of India (RBI) has advised all banks to issue only CTS-2010 (cheque truncation system-2010) standard cheque. The initiative has been taken to standardize and enhance security features in cheque forms.
‘It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called CTS-2010. Which will be available from 30th Sept 2012. Also already circulated cheques will be replaced within 31st December 2012. So it is necessary for all to understand how your new cheque format looks like.
1) Paper-Same specification will continue related to paper specification as it exist now. In addition to that, paper should be image friendly and have protection against any alteration by having new features as chemical sensitivity to acids, alkalis, bleaches and solvents giving  clear visibility of alteration. New cheque will not glow under Ultra-Violet light. This will make all cheques feel like same across all banks.
New Cheque  format from January 2013.
New Cheque.

Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project undertaken by the Reserve Bank of India – RBI, for faster clearing of cheques.[1] CTS is basically an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically.

Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en-route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.

Cheque truncation, would eliminate the need to move the physical instruments across branches, except in exceptional circumstances. This would result in effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.


As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker‘s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.(Stanchart)

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Author: ramanan50

Retired Senior Management Professional. Lectures on Indian Philosophy,Hinduism, Comparative Religions. Researching Philosophy, Religion. Free lance Writer.Blogger

10 thoughts on “DD Cheques Validity.Old Cheques Not Valid From Jan 2013”

  1. Hello there! I could have sworn I’ve been to this blog before but after looking at a few of the posts I realized it’s new to me.

    Anyways, I’m definitely pleased I discovered it and I’ll be
    book-marking it and checking back regularly!


  2. dear sir, what is the validity of foreign currency demand draft and if it is three months then what happens to that dd after 3 months.


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