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Cheques Truncation and Conversion System (CTCS)

May 7th, 2008Under the Sun

Bank Negara Malaysia has announced the implementation of the Cheque Truncation and Conversion System (CTCS) with effect from 23rdMay 2008. The new CTCS is an image-based cheque clearing system which will replace the existing paper-based cheque clearing system.

Consequent to the above, we would require our customer to observe the following with immediate effect :-

1. CTCS Compliant Cheque
CTCS compliant cheques (Dimensfon 7″ x 3.5″) are identified with the cheque digit in the form of “00″ that appears before the 6-digit cheque serial number. These cheques are available for requisition since October 2007. We seek your cooperation to return the old cheques to your account branch in exchange of the new CTCS compliant cheques NOT LATER THAN 30thJune 2008. This is aimed to avoid any inconvenience when the non-CTCS compliant cheques are rejected by the new system.

2. Company stamp / chop / personal seal
All company stamp / chop / personal seal shall no longer be allowed on the cheques. We shall confirm the payment of your cheques in accordance with your existing account mandate without any reference to the company stamp / chop / personal seal.

3. Writing of cheque
Your cheques must be written in permanent ink of dark colours (black or blue) in ensuring that the image is clear for processing. Where cheques are printed with computer or typewriters, it is important to regularly change the ink cartridge or ribbon in maintaining good quality print. You should stop using franking machine / checkwriter to imprint the amount in words on the cheque.

4. Payee’s Name / Account Number
In depositing any CTCS compliant cheque, the name of payee and account number must be clearly written in the boxes provided on the reverse of the cheque. This is to ensure that the depositor receives the proceed of the cheque without undue delay.