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> Cheque Truncation and Conversion System (CTCS), Which bank is implementing?

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TSvaio_me
post Jun 5 2008, 10:50 AM, updated 13y ago

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Anyone know about this Cheque Truncation and Conversion System (CTCS) stuff? I was being told that RHB still not yet implement with this system, HSBC and Standard Chartered bank will be implementing this end of this month.

Cheque clearing normally takes 2 or more days, but with this system, it will clear on the same day or next business day. Anyone know any other bank implementing this as well?
ler
post Jun 5 2008, 11:03 AM

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all bankin klang valley will be force to join the system. For other region will be next year
cherroy
post Jun 5 2008, 11:19 AM

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QUOTE(vaio_me @ Jun 5 2008, 10:50 AM)
Anyone know about this Cheque Truncation and Conversion System (CTCS) stuff? I was being told that RHB still not yet implement with this system, HSBC and Standard Chartered bank will be implementing this end of this month.

Cheque clearing normally takes 2 or more days, but with this system, it will clear on the same day or next business day. Anyone know any other bank implementing this as well?
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All banks are required to implement this across nationwide, start from Klang Valley after June 30 (date if not mistaken) as imposed by BNM.
b00n
post Jun 5 2008, 11:41 AM

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It would be in imposed in stages.
Sabah and Sarawak is by next year IIRC.
Will try to search for the article later as quite busy currently.

i.e. once it is fully implemented, there wouldn't be any outstation cheque charges.

edited: found some articles

BNM Official Announcement
QUOTE
Introduction of the Cheque Truncation and Conversion System (CTCS)
Bank Negara Malaysia wishes to announce the introduction of the Cheque Truncation and Conversion System (CTCS) to replace the current cheque clearing system. Cheque truncation is scheduled to go live on 23 May 2008 and cheque conversion in August 2008, both to be implemented first in the Klang Valley. The rollout to the rest of the country will be carried out in phases; the Penang and Johor Bahru regions by October 2008 and the east coast states and east Malaysia by January 2009.

With cheque truncation, the cheque clearing system in Malaysia will be transformed from one driven by the physical exchange of cheques to the electronic capture and transmission of cheque images and data between the banks and the clearing house. Cheque conversion, is also being introduced as a new facility initially for organisations that receive large volumes of cheques such as the utility companies, telcos, insurance companies and stock brokers. This facility would enable such organisations to convert the data in the magnetic ink character recognition (MICR) code in the cheques received on their own, into payment instructions to debit the drawers account. This would facilitate the prompt crediting of funds into their accounts.
The introduction of CTCS is an important step in modernising the cheque processing infrastructure in Malaysia as it paves the way towards the electronification of cheques and reduction of risks and costs associated with paper-based payment instruments. Although in recent years, there has been a shift in the payment mode from cheques to electronic payments, cheques continue to be the dominant payment instrument, accounting for 93% of the non-cash payment value. Hence, enhancing the efficiency of cheque clearing would contribute towards lowering operational costs, the cost of doing business thereby enhancing the overall competitiveness for businesses and the economy as a whole.

Customers and businesses will benefit from the speedier and more efficient cheque clearing system especially in the timing of the availability of funds from the deposit of outstation cheques, cheque conversion facility and the return of unpaid cheques to payees. Under the CTCS, outstation as well as local cheques will be cleared on the same day and funds made available as early as the next business day, compared to between 5 to 8 business days for outstation cheques currently. Express clearing of cheques is also available under the CTCS which provides for same day clearing and funds availability.

To facilitate the implementation of the CTCS and to enable the banks to replace the physical presentment of cheques for clearing, the Bills of Exchange Act 1949 has been amended to allow banks to present the electronic image and data of the cheques for payment. The Evidence Act 1950 also recognizes the computer print out of the image and data of cheques as evidence in court in place of the physical cheques. In addition, the printing of the name of the company and the registration number on the cheque in lieu of rubber stamp, chop or seal, complies with the requirements of the Companies Act 1965.

The longer term benefit from the implementation of CTCS is expected to be reaped by businesses, the banking industry and the country as a whole as the electronification of cheques, in particular, the conversion of cheque payments into electronic payment instructions will spearhead the migration to electronic payments. Capitalising on the high number of ATM cards of more than 21 million in the country, efforts are also being undertaken to position the ATM card as a debit card to be used in place of cash. Efforts are also being taken to leverage on the increasing popularity of the Internet as a channel for undertaking banking and payment transactions. In additions, Malaysia's high mobile phone penetration, will also be leveraged upon to increase the adoption and offering of electronic payment services.


BNM FAQ
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This post has been edited by b00n: Jun 5 2008, 01:44 PM
neverlog
post Jul 2 2008, 08:37 PM

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hey guys,

I still have non-standard cheque which haven't not finish.

I heard that after 30 Jun 2008, everyone need to use new CTCS-compliant cheques.

Will my non-standard cheque get reject if I stil use it?
Jean72
post Jul 2 2008, 10:37 PM

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QUOTE(neverlog @ Jul 2 2008, 08:37 PM)
hey guys,

I still have non-standard cheque which haven't not finish.

I heard that after 30 Jun 2008, everyone need to use new CTCS-compliant cheques.

Will my non-standard cheque get reject if I stil use it?
*
Yes. it will
vin_ann
post Jul 2 2008, 11:01 PM

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QUOTE(neverlog @ Jul 2 2008, 08:37 PM)
hey guys,

I still have non-standard cheque which haven't not finish.

I heard that after 30 Jun 2008, everyone need to use new CTCS-compliant cheques.

Will my non-standard cheque get reject if I stil use it?
*
you have to return ur cheque book to bank.
xSean
post Jul 2 2008, 11:17 PM

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what is CTCS-compliant cheques?
tinkerbel
post Jul 3 2008, 12:43 AM

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@xSean,
CTCS = Cheque Truncation and Conversion System.
dr2k3
post Jul 3 2008, 02:32 AM

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not quite understand....

how to differentiate between standard n non standard
David83
post Jul 3 2008, 03:32 AM

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Does CTCS is referring to one fixed cheque size for all banks?
b00n
post Jul 3 2008, 09:13 AM

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http://forum.lowyat.net/index.php?showtopic=712302&hl=ctcs
dr2k3
post Jul 3 2008, 09:16 AM

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ow..there is existing topic about this...and damn.....next year only my state implement this....east malaysia alwayso last to get anything......=(

This post has been edited by dr2k3: Jul 3 2008, 09:21 AM
tinkerbel
post Jul 3 2008, 09:18 AM

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@dr2k3,
You might want to check if ur bank can replace the remaining cheques for u at their cost. I exchanged mine in Dec 07 and MBB gave me a free replacement for all those cheques I have yet to use.
dr2k3
post Jul 3 2008, 09:20 AM

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@tinkerbel

boon just posted announcement from BNM, east malaysia next year only start implementing.....

east malaysia always last for everything - -

This post has been edited by dr2k3: Jul 3 2008, 09:21 AM
tinkerbel
post Jul 3 2008, 09:22 AM

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@dr2k3,
Yes but banks haf oredi started exchanging the cheque sleeves. For those who changed it after 31 Dec 2007, no refund was given and they have till 30 Jun 2007 to utilise those cheques. Anything exchanged after that the bank won't exchange it for U - this is for MBB.

Hence, if ur holding a new cheque book, U might want to check with ur bank if they're currently replacing all old cheque books with the new ones at NO cost to U smile.gif
b00n
post Jul 3 2008, 10:08 AM

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A lot of banks had either been using compliant checque or had been replacing the new cheque book for free since starting this year.
SKY 1809
post Jul 3 2008, 10:22 AM

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QUOTE(dr2k3 @ Jul 3 2008, 09:20 AM)
@tinkerbel

boon just posted announcement from BNM, east malaysia next year only start implementing.....

east malaysia always last for everything - -
*
Last does not mean it is no good.

You could avoid the problems we are currently facing now.

When comes to your turn, the system is smooth.


We are on the " test run now ".

This post has been edited by SKY 1809: Jul 3 2008, 10:23 AM
dr2k3
post Jul 3 2008, 10:31 AM

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@SKY 1809

atleast u can test....we want test also canot

SKY 1809
post Jul 3 2008, 10:38 AM

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QUOTE(dr2k3 @ Jul 3 2008, 10:31 AM)
@SKY 1809

atleast u can test....we want test also canot
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Do you want to be in a position whereby you banked in a cheque and it takes 10 days to ( or not ) clear.

If you do, we welcome you.
dr2k3
post Jul 3 2008, 10:40 AM

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QUOTE(SKY 1809 @ Jul 3 2008, 10:38 AM)
Do you want to be in a position whereby you banked in a cheque and it takes 10 days to ( or not ) clear.

If you do, we welcome you.
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im not that desperate with money...so as long as it can clear...ya why not tongue.gif
SKY 1809
post Jul 3 2008, 10:46 AM

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QUOTE(dr2k3 @ Jul 3 2008, 10:40 AM)
im not that desperate with money...so as long as it can clear...ya why not tongue.gif
*
If you are not desperate , you should not need the new system at all .

That is why , East Malaysia is last, bcos most people do not need the money.



dr2k3
post Jul 3 2008, 10:53 AM

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lol~ like that also can ><

how about broadband....we also last...that i very desperate ler tongue.gif
SKY 1809
post Jul 3 2008, 10:55 AM

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QUOTE(dr2k3 @ Jul 3 2008, 10:53 AM)
lol~ like that also can ><

how about broadband....we also last...that i very desperate ler tongue.gif
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Better keep to the topic than OT.

No value added.

dr2k3
post Jul 3 2008, 10:57 AM

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lolololololol~ >< u buwee me ~_~

i tot should be not desperate than can test......those who desperate better not test....coz if got prob they no money use tongue.gif

This post has been edited by dr2k3: Jul 3 2008, 11:01 AM
cute_boboi
post Jul 3 2008, 11:55 AM

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QUOTE(neverlog @ Jul 2 2008, 08:37 PM)
hey guys,

I still have non-standard cheque which haven't not finish.

I heard that after 30 Jun 2008, everyone need to use new CTCS-compliant cheques.

Will my non-standard cheque get reject if I stil use it?
*
Go back to your cheque branch, return it, for each unused page, you'll get back RM0.15.

Then, request for new cheque book(s). Charges as usual.

Justmua
post Jul 3 2008, 03:30 PM

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As far as I know, there is no official word from BNM that says that non-CTCS cheques cannot be used. I have checked with MBB and this is what they told me and said I can still bank in non-CTCS compliant cheques. Banked in the non CTCS cheque today and will see if it clears.

Whether you wish to exchange the cheques or not depends on how many you have, when you expect to finish, etc....

BTW, the cheques are issued free by banks. We are just charged the stamp duty and delivery charges.

Update: Yeap... non CTCS cheque can still be used. My above-mentioned cheque is reflected in my account already.

QUOTE(cute_boboi @ Jul 3 2008, 11:55 AM)
Go back to your cheque branch, return it, for each unused page, you'll get back RM0.15.

Then, request for new cheque book(s). Charges as usual.
*
This post has been edited by Justmua: Jul 3 2008, 06:07 PM
SKY 1809
post Jul 3 2008, 03:53 PM

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I heard you cannot use a stamp to stamp the date and name of payee, otherwise void and returnable.
Justmua
post Jul 3 2008, 06:08 PM

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If I am not wrong, you can use the rubber stamp for date and payee's name. For corporate cheques, you do not need to put the company rubber stamp, as was customarily done previously.


QUOTE(SKY 1809 @ Jul 3 2008, 03:53 PM)
I heard you cannot use a stamp to stamp the date and name of payee, otherwise void and returnable.
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tinkerbel
post Jul 3 2008, 06:12 PM

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@dr2k3,
If it takes 20 days to clear ur salary cheque, U'll start getting desperate for the $ - it's not a good thing when cheques are taking this long to clear. U should read the thread about CIMB and their cheque clearance. We have people whose cheque was banked in early Jun and yet remains not cleared.
SKY 1809
post Jul 3 2008, 06:18 PM

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QUOTE(Justmua @ Jul 3 2008, 06:08 PM)
If I am not wrong, you can use the rubber stamp for date and payee's name. For corporate cheques, you do not need to put the company rubber stamp, as was customarily done previously.
*
I heard from the banker that the new system cannot read DATE AND PAYEE if there are used with an ink chop, instead of usual hand writings.

It is not the Q of whether accepting by the banks or not.

This post has been edited by SKY 1809: Jul 3 2008, 06:33 PM
Justmua
post Jul 3 2008, 06:47 PM

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I know people who are using rubber stamps for date & payee. No known problem.

I believe the cheques are scanned as image and no character recognization is involved. Only data captured is the MICR codes at the bottom of the cheques.

So, it doesn't make sense that rubber stamps cannot be used for date & payee!! Some bankers please confirm.


QUOTE(SKY 1809 @ Jul 3 2008, 06:18 PM)
I heard from the banker that the new system cannot read DATE AND PAYEE if there are used with an ink chop, instead of usual hand writings.

It is not the Q of whether accepting by the banks or not.
*
cryssyenddo
post Aug 17 2008, 04:58 PM

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@tinkerbel

Don't worry about that, it won't happen. If we've allowed that pass during our testings, you won't even heard of CTCS tongue.gif

So far as i know, the system isn't capable of delaying a check transaction that long biggrin.gif

This post has been edited by cryssyenddo: Aug 17 2008, 05:01 PM
wenjie86
post Aug 17 2008, 06:24 PM

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under this, new cheque already been given to all cheque holder.. most bank trying to collect back their old cheque..

this new cheque, will change the corporate cheque and personal cheque into the same size, style smile.gif


nanakopy87
post Aug 26 2009, 01:02 PM

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wana ask,can i still bank -in the old cheque after 1st september,if i receive the old style of cheque after 1st september?

 

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