Nationwide Rollout of CTCS on July 1

KUALA LUMPUR: With effect from July 1, Bank Negara Malaysia (BNM) is implementing the nationwide rollout of the Cheque Truncation and Cheque Conversion System (CTCS).
In a statement yesterday, BNM said the cheque clearing system in Malaysia would be driven by the transmission of cheque images and data between banks and the clearing house as compared with the current physical exchange of cheques.


The CTCS system is now managed and operated by the Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear), which is a wholly-owned subsidiary of the central bank. MyClear started operations on Jan 2, 2009. 

BNM said CTCS modernised the cheque processing infrastructure in Malaysia through the electronification of the cheque clearing process and reduction of risks and costs associated with paper-based payment instruments. 

"Cheques continue to be an important mode of payment, accounting for about 91.6% of non-cash payment value. 

"The implementation of CTCS would enhance the efficiency of cheque clearing and contributes toward lowering the cost of doing business, thereby enhancing the competitiveness of businesses as well as the overall economy," it said.

BNM said outstation cheques and local cheques in the country as a whole would be cleared on the same day and funds would be credited to the depositor’s account no more than two days later. 

However, in the states of Kelantan and Terengganu, which have different weekend bank holidays, cheques deposited on Sunday will require an additional working day for funds to be made available into the depositors’ accounts. Consumers and businesses will also no longer need to pay commission fees for outstation cheques.

BNM said with the rollout of CTCS, members of the public were reminded that effective Sept 1, 2009, only the newly designed cheques conforming to the eSPICK Cheque Design Standards and Specifications would be accepted by the banks for clearing.