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Q1. Will all banks in Singapore be on CTS?
All banks that issue SGD cheques and local USD cheques will be involved.
Q2. What should I do if I receive a non CTS-compliant cheque?
You should request for a new CTS-compliant cheque from the drawer.
Q3. Under CTS, can I alter a cheque?
Yes, you can continue to do so provided you endorse the alterations with your full signature.
IMAGE RETURN DOCUMENT (IRD)
Q4. What is an IRD?
Under CTS, when a cheque that you have deposited into your account is returned unpaid, you will receive an 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-presentment. Please see the attached image for features to look out for in an IRD.
Q5. Why can't the banks return the original unpaid cheque?
As CTS uses electronic images, the physical cheque is removed from the clearance process once is it presented at your bank.
Q6. Will banks impose a charge for the issuance of IRDs?
Other than the usual returned cheque charges, there are no additional charges levied for the issuance of IRDs. However, a retrieval charge of $50 may apply if you want to have the original cheque back, provided that the cheque is still in the Warehouse.
Q7. What are the IRD's security features?
The IRD will be serialized and printed on CTS watermark paper as well as controlled strictly by the participating banks.
Q8. What should I do if I receive an IRD?
You should refer to the bottom half of the IRD to determine the reason why the cheque is unpaid as well as whether you can present the IRD. If you receive an IRD during the initial period of CTS implementation, your bank will send you a leaflet explaining how to interpret the IRD.
Q9. What should I do if I can present the IRD to the bank for clearing?
You should detach the IRD from the Return Cheque Advice and deposit it at any branch of the same bank that you first deposited the cheque. You may also deposit it in that bank's Quick Cheque Deposit box.
Q10. What should I do if I cannot present the IRD to the bank for clearing?
You should exchange the IRD for a new cheque from the drawer.
Q11. Can I make alterations on the IRD eg. get the drawer to sign on it if the cheque was unpaid because of missing or irregular signature?
Under the CTS, alterations are not allowed on IRDs as any changes on it will not correspond to the scanned image of the original cheque that is being stored with the Presenting Bank. You should ask the drawer to give you a replacement cheque instead. |
