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What is Cheque Truncation system (CTS)? |
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Cheque Truncation System (CTS) is an image-based cheque clearing system implemented by all banks in Singapore for SGD and USD cheques. With CTS, the cheque will be scanned upon deposit and its electronic image, instead of the physical cheque, will be transmitted throughout the entire clearing cycle. |
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2. |
Can I alter a cheque under CTS? |
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Yes, you can do so provided you endorse the alterations with your full signature. |
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3. |
What is Image Return Document (IRD)? |
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Under CTS, when a cheque that you have deposited into your account is returned unpaid, you will receive an Image Return Document (IRD) instead of the cheque. The IRD serves as a notice of dishonour and replaces the original cheque for the purpose of re-presentment for clearing under CTS. It is a legally recognized replacement of the original cheque for re-presentation. |
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4. |
Why can’t the banks return the original unpaid cheque? |
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As CTS uses electronic images, the physical cheque is removed from the clearance process once it is presented at your bank. |
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5. |
Will banks impose a charge for the issuance of IRDs? |
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Other than the usual returned cheque charges, there are no additional charges levied for the issuance of IRDs. However, a retrieval charge of SGD 50 will apply if you want the original cheque to be returned to you, provided the cheque is still in the warehouse. |
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6. |
What are the security features of an IRD? |
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The IRD will be serialized and printed on CTS watermark paper as well as controlled strictly by the participating banks. |
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7. |
What should I do if I receive an IRD? |
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You should refer to the bottom half of the IRD to determine the reason why the cheque has been returned unpaid as well as whether you can present the IRD. |
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8. |
What should I do if I want to present the IRD to the bank for clearing? |
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You should detach the IRD from the Return Cheque Advice and deposit it at any our branches/ Quick Cheque Deposit boxes. |
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9. |
What should I do if I cannot present the IRD to the bank for clearing? |
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You should exchange the IRD for a new cheque from the drawer. |
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10. |
Can I make alterations on the IRD? E.g. Can I get the drawer to sign on the IRD if the cheque was unpaid because of missing or irregular signature? |
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Under the CTS, alterations are not allowed on IRDs as any changes thereon will not correspond to the scanned image of the original cheque that is stored with the presenting bank. You should ask the drawer to give you a replacement cheque instead. |
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11. |
Can I present a torn or damaged IRD? |
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No. You should ask the drawer for a new cheque. |
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12. |
What should I do if I have misplaced or lost an IRD that can be presented? |
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As an IRD is a substitute of the dishonoured cheque, you should treat a misplaced or lost IRD as if it were a lost cheque. You should ask the drawer for a new cheque. The drawer should also place stop payment instructions for the lost cheque. |
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13. |
For an IRD that is presented and returned, will the same IRD be used again? |
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No. A new IRD will be generated for each return of the same cheque. Hence, if an IRD is presented and subsequently returned, another IRD will be generated stating clearly that it is the second IRD. |
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14. |
What are the benefits of the IRD to the customer? |
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You will be able to read in a one-page document: |
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the reason for return of cheque |
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whether it can be presented |
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whether you should obtain a new cheque from the drawer |
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the validity period of the IRD and |
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the number of times the IRD had been presented |
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