|
| |
All banks in Singapore that clear SGD and local USD cheques have implemented an online image-based cheque clearing system called the Cheque Truncation System (CTS) from 12 July 2003. With CTS, cheques are scanned when deposited and their electronic images, instead of the physical cheques, are transmitted throughout the entire clearing cycle. CTS enhances the operational workflow of banks by eliminating the need to move cheques physically from one bank to another. Cheques, in a standardized size, are used under the new system. |
| |
|
| With effect from 15 May 2006, the Singapore banking industry has implemented a 5-Day Clearing Week |
| |
|
|
| The Cheque Truncation System (CTS) is an online image-based cheque clearing system implemented on 12 July 2003. |
| |
| 1. Are all banks in Singapore on CTS? |
All banks that issue SGD cheques and local USD cheques are on CTS. |
| |
| 2. What should I do if I receive a non CTS-compliant cheque? |
You should ask for a new CTS-compliant cheque from the drawer. |
| |
| 3. Under CTS, can I alter a cheque? |
Yes, provided you endorse the alterations with your full signature. |
| |
|
| 1. 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. Here is a specimen IRD showing the features to look out for.  |
| |
| 2. 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 you present it at your bank. |
| |
| 3. Will banks impose a charge for the issuance of IRDs? |
Other than 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 the original cheque returned -- provided that the cheque is still in the bank’s warehouse. |
| |
| 4. What are the IRD's security features? |
Each IRD is serialized and printed on CTS watermark paper as well as controlled strictly by the participating banks. |
| |
| 5. What should I do if I receive an IRD? |
You should look at the bottom half of the IRD to determine the reason why the cheque is unpaid as well as whether you can present the IRD to the bank. |
| |
| 6. What must I do if I can present the IRD to the bank for clearing? |
You detach the IRD from the Return Cheque Advice and deposit it at any branch of the same bank that you first deposited the cheque. |
| |
| 7. 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. |
| |
| 8. Is it permitted to make alterations on the IRD eg. have the drawer sign on it if the cheque was unpaid because of missing or irregular signature? |
Alterations are not allowed on IRDs as any changes will not correspond to the scanned image of the original cheque held by the Presenting Bank. You should ask the drawer to give you a fresh cheque. |
| |
| 9. Can I present a torn or mutilated IRD? |
No. You should ask the drawer for a new cheque. |
| |
| 10. What should I do if I have misplaced or lost an IRD that can be presented? |
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 put a stop payment instruction on the lost IRD. |
| |
| 11. If an IRD is presented and returned, will the same IRD be used again? |
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. |
| |
| 12. What are the benefits of the IRD over the old return cheque process? |
You will be able to read in a one-page document: the return reason whether it can be presented whether you should obtain a new cheque from the drawer the validity period of the IRD and the number of times the IRD has been presented
|
| |
|
|
| The 5-Day Clearing Week (5DCW) means that on Saturdays, there will be no crediting or debiting of customer accounts with cheques, GIRO or Interbank funds transfers. Therefore, clearing of funds will be from Mondays – Fridays only. This changeover took effect from 15 May 2006. |
| |
| What does it mean for cheque clearing and banking transactions on Saturdays under 5DCW? |
| (A) Cheques: | | Thursday (before cutoff time) | Friday (after 2pm) | | Thursday (after cutoff time) | Monday (after 2pm) | | Friday (before cutoff time) | Monday (after 2pm) | | Friday (after cutoff time) | Tuesday (after 2pm) | | Saturday | Tuesday (after 2pm) |
| | | | (B) Banks with branch banking on Saturdays: | Cheques will be accepted for deposit but funds will be made available only on Tuesdays after 2pm.
Cash cheques can be en-cashed at the drawer’s bank.
Cheques for deposit into an account may be marked and drawn on, provided both the payee and the drawer are from the same bank. (A handling fee will be charged for this). | | | | (C) GIRO/ Standing Instruction: | | No crediting or debiting of customer accounts on Saturdays via GIRO. | | | | (D) Electronic Banking Services (eg ATM, Internet Banking and Phone Banking): | | Customers can transfer funds from one account to another account within the same bank 24/7. |
|
| |
