What is the difference between multi City cheque and normal cheque?

What is the difference between multi City cheque and normal cheque?

question. A multi-city cheque or MCC is a cheque which can be written by a customer in favour of his client which is payable at all the branches of the bank. A normal cheque is a kind of a bill issued by the drawer.

How do I check a multi city cheque?

Multi city cheque

1. The form of cheque written directly by the customer that can be payable in each branch of that particular branch is a multi city cheque.
2. It is only achieved in the case of the actual transaction.
3. There are costs that are deducted from the account for issuing the cheque.

What is CTS Cheque and non CTS Cheque?

if you are still holding a non- CTS cheque book, it is better you get it replaced from your banker. If the cheque book is not with CTS-2010 cheque leafs, they are referred to as non-CTS cheque books. Cheque Truncation System basically helps in faster clearance of the cheques in the banking records.

What is CTS banking?

Offering Cheque Truncation System (CTS) is a step in this direction. In addition to operational efficiency, CTS offers several benefits to banks and customers, including human resource rationalisation, cost effectiveness, business process re-engineering, better service, adoption of latest technology, etc.

What is a multi city cheque?

2. General: Definition of Multi-city cheque: Multi-City Cheque (MCC): It is a cheque drawn by a customer of the Bank in favour of a person/entity named therein and is payable at par at all branches of the Bank, subject to detailed terms and conditions as under.

What is the benefit of multi City cheque?

There will be no collection charges and the amount will be credited on the same day, as in the case of local cheques. Bank will not charge any collection fees even if the cheque is dropped at a bank other than the base bank.

What is the use of multi City cheque?

Bank issues Personalised Cheque book to all its customers which are payable at par at all branches of the Bank in India, called as Multi City Cheque. With the Multi City Cheque Book, you can withdraw funds by yourself as well as make payment to people in cities other than at city/town where you maintain an account.

What is CTS cheque?

CTS or Cheque Truncation System is a process of clearing cheques through image-based verification. The electronic version of the cheque is sent for clearance with all necessary details such as MICR code, date and name of presenting bank.

Are CTS Cheques valid?

All banks providing cheque facility to their customers have been advised to issue only ‘CTS-2010’ standard cheques. Cheques not complying with CTS-2010 standards will not be cleared through CTS clearing (updated as on June 30, 2020).

Is CTS cheque mandatory?

The Reserve Bank of India (RBI) recently made it mandatory for all banks to implement Cheque Truncation System (CTS) in all their branches across the country by September 30, 2021.

What is the full form of CTS?

Cheque Truncation System (CTS) is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch.

What is maximum cheque amount?

As per the RBI guidelines issued last year, banks can enable this facility for all account holders for cheque amounts of Rs 50,000 and above at the discretion of the account holder. However, banks may consider making it mandatory for cheques of above Rs 5 lakh.