Using non-CTS cheques will further delay clearance and hence consumers should avoid accepting non-CTS cheques from other party. If you are paying with non-CTS cheques it can take four days or more to clear. Your bank should give you CTS cheques to comply with the RBI order
The Reserve Bank of India (RBI) has been trying to make transition from cheque truncation system (CTS) to non-CTS cheque since last one year. Non-CTS cheques are still in operation, but consumers can expect delay in cheque clearances. It can take four or more days for its clearance, which can impact your payment. Avoid acceptance of other party non-CTS cheques. It is time to get rid of non-CTS cheques and ensure that your bank replaces it with CTS compliant cheques.
With effect from 1st May, banks will clear non-CTS cheques only on Monday and Friday instead of three days a week, which was setup after the CTS was implemented in 2014. The deadline for withdrawal of non-CTS cheques was 31 July 2013, but due to large volumes of non-CTS cheques in circulation, RBI allowed non-CTS cheques clearing to continue for five sessions a week till 31st December.
CTS or Image-based Clearing System (ICS) is an initiative of the Reserve Bank of India (RBI) for faster clearing of cheques. CTS is an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. It eliminates the need to move the physical instruments across branches, except in exceptional circumstances. The goal is to reduce the time required for payment of cheques and to lower the cost of transit.
RBI has initially instructed all banks to implement CTS across India by March 2013, but even after one year the system is not fully complete. Few banks have not proactively asked its customers to surrender non-CTS cheques and get CTS compliant cheques from the bank. Customer awareness may be an issue. Those who do not have much usage of cheques will continue holding non-CTS cheques until the banks intervene. Most banks offer one free cheque book every quarter, but many customers do not avail of it, as the existing cheque book may not have been exhausted.
RBI implemented CTS in 2014 for faster clearing of cheques. But, there still are technical or operational issues in bank system leading to delay in cheque clearing. It means loss of savings account interest. Can RBI ask banks at fault to compensate for the delay by paying the interest? Moneylife has come across several such examples.
Is the RBI pushing bank consumers to use National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) instead of writing cheques? If you are transferring big amount from one account to other own savings account, it will be wise to do RTGS. It will avoid the situation of one-day interest loss due to possible CTS issues, which can be a big loss.
Bank customers deprived interest income due to delay in CTS clearances
For FY14, La Opala reported a higher net profit at Rs29.95 crore on robust sales and lower raw material costs. Its shares hits a 52-week high
La Opala RG Ltd (La Opala), the Kolkata-based opal glass tableware manufacturer, hit a new 52-week high on Wednesday following a jump in the company's full year net profit.
According to the company, its FY14 net profit jumped on robust sales growth and lower raw material costs. On Wednesday, its shares opened at Rs886 and made its 52-week high at Rs948.95 on the BSE.
For the 12 month to end-March, the glassware manufacturer, said its net profit increased 31% to Rs29.95 crore from Rs22.88 crore, while its total revenues, including sales, grew 16% to Rs177.86 crore from Rs153.92 crore, a year ago period.
La Opala said its full year expenses grew 14% to Rs134.90 crore from Rs118.29 crore a year ago period. However, its cost of raw materials declined 2.44% to Rs37.06 crore and other expenses fell 2.53% to Rs20.81 crore compared with the same period a year ago.
During the March quarter, the company said its net profit grew 35% to Rs8.53 crore from Rs6.33 crore, as its total revenues, including sales, grew 22% to Rs48.86 crore from Rs39.93 crore a year ago period
As on 31 March 2014, FII shareholding in La Opala increased to 5.50% from 0%, DII shareholding increased to 2.16% from 1.88%, promoter shareholding increased marginally to 68.15%, while public shareholding fell to 6.90% from 9.29% as on 31st March 2013.
La Opala declared a final dividend of Rs5 per share.
At 3.14pm Wednesday, La Opala RG was trading 7.7% up at Rs951 on the BSE, while the S&P BSE Sensex was flat at 23,854.
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For the March quarter, Nestle India reported lower net profit of Rs259 crore due to higher costs, lower demand and exports
Nestle India Ltd (Nestle) reported a lower first quarter net profit mainly on higher raw material costs, subdued demand and lower exports.
For the quarter to end-March, the packaged food maker, said its net profit fell 7% to Rs259 crore from Rs279 crore, while its total revenues, including sales, grew 2.93% to Rs2,321.51 crore from Rs2,255.35 crore, same period last year.
“Operating margins have been adversely impacted by high price of milk solids. Its exports declined largely due to export to affiliates (Russia) as capacity was prioritised for domestic business,” Nestle said in a regulatory filing.
“The first quarter results are broadly as expected and in line with our strategy. We will continue to take the right decisions in the short and medium term while maintaining healthy overall performance,”said Etienne Benet, managing director, Nestle.
During the first quarter, Nestle said, its domestic sales grew 3.46% to Rs2,167.72 crore from Rs2,095.25 crore, its exports fell 4.36% to Rs146.17 crore from Rs152.83 crore a year ago period.
The company said its March quarter expenditure grew 6.08% to Rs1,904.22 crore from Rs1,795.03 crore, its raw material costs increased 18.79% to Rs1,150.12 crore, employee benefit expenses increased 6.78% to Rs167.48 crore while other expenses increased 8.42% to Rs573.24 crore.
Nestle declared an interim dividend of Rs12.50 per share.
At 3.09pm Wednesday, Nestle India was trading 1.9% down at Rs4752 on the BSE, while the S&P BSE Sensex was flat at 23,854.
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