RBI today said it has decided to dispense with the requirement of physically forwarding paid central government cheques to the departments for clearance.
With a view to enhancing efficiency in cheque clearing, Reserve Bank has introduced Cheque Truncation System (CTS) for clearance of cheques, facilitating the presentation and payment of cheques without their physical movement.
Taking this initiative forward, it has now been decided in consultation with the Office of the Controller General of Accounts, Ministry of Finance to dispense with current requirement of forwarding the paid central government cheques in physical form to the Government departments, RBI said.
The practice of presenting cheques in physical form is commonly known as P2F.
The revised guidelines would be effective in respect of cheques issued by the central government and Union Territories (UTs) from February 1, 2016.
