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One more issue that I see is the possibility of outright fraud - if a person intentionally passes on the old cheques as PDCs. There is no process (there has never been reason to) to check for the validity of cheques as instruments in India before signing
agreements / contracts.
Perhaps RBI / Banks can, through advertisements - press, tv, make it abundantly clear that people should before entering into agreements have the cheques validated by their Bank. Ads need to me in local languages and must reach towns, villages since the
non-english speaking population will be the most vulnerable section for this fraud (as they are for most others).
Banks must offer this cheque validation service free of charge of course.
Phew, thanks for pointing the fraud ramification of CTS-2010! I never thought of it. Depending on which report or FAQ you read, you'd reach various conclusions ranging from "no need to change cheques" and "there's only one difference between the old and
new cheques" to "you must surrender your old cheque books before getting the new ones" and "there are five differences between the old and new cheques". The only things I'm certain about are (a) I've received new cheque books from two banks without surrendering
the old cheque books and (b) I won't be able to distinguish between the old and new cheque leaves.
Let alone rural and non-English speaking population, in this case, even urban and English-speaking people with fair amount of knowledge about banking - like me - need to be on the guard against the likelihood of fraud. Although it's another hoop to jump,
I agree that bank verification of cheque validity will become a necessary step before contracts can be concluded in the CTS-2010 regime.
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