RBI has issued a circular dated 24th July 2013 wherein it has mandated that in all those centres/ locations in India where facility of ECS/ RECS (Debit) is available, no further post dated cheques or equated monthly instalment cheques will be accepted by the banks. Instead the banks will accept ECS/ RECS debit mandates. Even the existing PDC/ EMI cheques will be converted into ECS/ RECS debit mandates.
Further once the ECS/ RECS debit mandates have been accepted from the customers there is no further need to accept PDC/ EMI cheques also in addition to the debit mandates in order to take care of dishonour of cheques situation because section 25 of the Payments & Settlements Act gives the same rights and remedies to the payee (beneficiary) of ECS/ RECS debit mandates as is the case with PDC/ EMI cheques. Both being on the same footing there is no need to duplicate by asking customers to deposit cheques also in addition to the debit mandates.
Further in centres/ locations where ECS/ RECS (debit) facilities are not available then only CTS 2010 compliant cheques should be accepted as PDC/ EMI cheques.
This is a step by RBI to migrate to a paperless transaction system in future. The copy of the circular is available at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8267&Mode=0