New RBI guidelines for Cheque Truncation

The Reserve Bank of India (RBI) has prescribed new guidelines on standardization of security features of cheques, which are aimed at enhancing customer safety and facilitating easier processing.

Please note that as per RBI guidelines, non CTS-2010 cheques should be withdrawn before December 31, 2012. Please go through the FAQs below to:

• Identify whether your existing cheque book is CTS-2010 compliant
• Request for a new cheque book, if required

Also, please note that RBI has advised all banks holding post-dated EMI cheques to arrange for replacement of non-CTS-2010 Standard cheques with CTS-2010 Standard cheques. If you have availed a loan and have given post dated cheques to your lending bank, do get in touch with them for advice on the next steps.

Should you have any other query, you can check with your existing Banker.

Frequently Asked Questions (FAQs) for CTS-2010 Standard Cheque System

Q1. How do I identify if my cheque book is CTS-2010 compliant?

Please look for the letters “CTS-2010” printed vertically on the cheque leaf (near the perforation on the left side)

If the letters “CTS-2010” are present here, your cheque book is CTS-2010 compliant

Q2. My cheque book is CTS-2010 compliant and the above feature is present in my cheque book. What do I have to do?

If your cheque book is already CTS-2010 compliant, you can continue using the same and there is no further action required.

Q3. My cheque book is not CTS-2010 compliant. How do I order a new cheque book?

In case your cheque book is not CTS-2010 compliant, please order a new one with your existing Banker as per the regular process. All cheque books issued now, will be CTS-2010 compliant

First time ever: Moneylife Foundation to help getting fast track credit report from Experian

Can This Happen to you? A True Story!
Anil Kumar (name changed) a well-to-do businessman-activist sent us this email: “I had a harrowing experience today. I had applied for a bank loan of Rs5 lakh but was shocked to discover that I was a defaulter on the credit bureau records. ABCD Bank had reported me a defaulter for Rs7,784 because of a dispute I had with them over annual fees nearly 12 years ago. The fee was Rs1,000; they kept the card alive and kept adding fees and interest. My wife’s credit report also lists her as a defaulter because she had an add-on card. I never realised this, since I have never taken any loan in all these years… How dare they?
This could well be your story too. You never to know what the banks have reported about you to credit information companies. Know it, before you land in an awkward situation.In yet another unique initiative, Moneylife Foundation has tied up with Experian Credit Information Company of India Pvt Ltd (‘Experian’) for providing credit information report.
First time ever: Fast Track Credit Report
Submit your KYC documents, pay Rs138 in cash at Moneylife Foundation & apply for your Experian Credit Information Report. Experian will send
the report to you via SpeedPost
Time: 29th November and 15th December; 10.30am – 5.30 pm.
Venue: Moneylife Foundation Knowledge Centre,
305, 3rd Floor, Hind Service Industries Premises, Off Veer Savarkar Marg,
Shivaji Park, Dadar (W), Mumbai – 400 028. Landmark: Chaityabhoomi lane.
Contact details: Seraphina / Shilpa at 022-49205000 or
email us at or log on to
KYC Requirements for Experian Credit Report:
Only those who submit their documents on 29th November get
a chance to avail of the guidance from Experian on the Credit Report Camp of the 15th December (see below).
The Experian CIR application form can be downloaded from the Experian India website. We can also email you a pdf on request (write to signed copy of the Experian CIR application form will have to be sent with self-attested photocopies
(a signed and dated photocopy) of the following identity & address proof documents:

  1. Identity Proof (any one of the following documents)
    (i)    PAN card (recommended)
    (ii)   Passport
    (iii)  Voters ID
  2. Address Proof (any one of the following documents and the address proof should display the applicant’s name)
    (i)    Electricity bill (no more than 3 months old and for the current address)
    (ii)   Telephone bill (no more than 3 months old and for the current address)
    (iii)  Latest bank statement (no more than 3 months old and for the current address)
    (iv)  Passport
    (v)   Lease / license deed
    (vi)  Sale / purchase deed

Only when the KYC documents are accepted as correct, the cash of Rs138 will be accepted. You may submit the documents at your own accord and responsibility through an authorized representative on 29th November. Make sure you bring/send the correct documents.

Plus: Full day Credit Report Camp
One-to-one Counselling on Saturday, 15 December 2012
  • Those who already have their reports, can avail of one-on-one counselling to understand Experian CIR and get guidance on how to improve it or to rectify incorrect records (by prior appointment). This is why you should submit your KYC on 29thNovember
  • At the camp, you can attend the session “Understanding Credit Crossroads and how a wrong move or carelessness can affect your financial life” by Experian
  • Experian will accept your KYC documents for your Credit Information Report again at the Camp on 15th December and send the report as soon as possible. However, since you will not have your report in hand on that day, you will not be able to discuss your specific case during the Camp

Supreme Court Order: Sahara unmasked

Regulatory Inaction
Until SEBI acted on Roshan Lal’s complaint to go after Sahara’s humongous, non-transparent fund-raising, every regulator had fallen silent after a cursory investigation. Court documents show that the massive Rs17,400 crore raised by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation (Saharas) was coolly being funnelled into M/s Sahara India—a registered partnership firm of the promoters. Did our tax sleuths investigate how this large sum was deployed? Isn’t it curious that the Sahara Pariwar does not figure among India’s highest taxpayers, but its advertisement titled “Emotionally Speaking” claims that the Income Tax department is holding back a massive Rs2,000 crore in refunds? Is this even true?

Why don’t government watchdogs bark about Sahara? This too came out in the litigation, in a very positive way. A strong affidavit by Sanjay Shorey, joint director in the ministry of corporate affairs (MCA), exposed how Sahara had been manipulating the ROC, Kanpur, to back its dubious claims through sworn affidavits before the Allahabad high court. MCA’s affidavit, which Arvind Datar considers a turning point in the case, backed SEBI’s action to the hilt and strongly refuted its own ROC’s claims.

Silencing the Media
With the media spewing information about bigger scams (coal, iron ore, telecom) everyday, it seems contradictory to say that they are reticent about Sahara. So how does one explain the fact that no television channel debated the path-breaking SC judgement? Sahara’s belligerent full-page advertisements in the press and lavish commercials are a large enough source of revenue to silence many media houses. The galaxy of top lawyers hired to defend its bizarre claims and audacious obfuscation even before the apex court and limitless funds for litigation are other deterrents. That is probably why mainstream media have never questioned Sahara’s endless money supply.

Click Here for the full story in MoneyLife


Banks can’t freeze accounts if KYC papers not submitted

Can service be suspended for failing to comply with the subsequent demands for KYC (Know Your Customer) ? This issue has been decided by the Gujarat high court in the case of State Bank of India, Chandkheda Branch & Anr v/s Ashvin Chaturbhai Parmar & Ors in Criminal Misc Appl No 5100 of 2012 decided on April 30 2012.

The court also held that in case of failure to comply with the KYC requirements, the bank would neither have the right to freeze the account, nor could it stop the cheque book or the ATM facility. However, the bank would have the right to close the account, but after following the due process. This means that due notice would first have to be given to the customer, and if the documents are not supplied despite the intimation and repeated efforts to procure the same, the issue would have to be referred to the competent authority at a higher level, who would have the power to order closure of the account.

Click Here for the full story