Module: | CTS & Positive Pay Framework
Q10: Which of the following statements regarding the valid issuance and maintenance of cheques under CTS rules are correct?
1. Any material alteration in the payee or amount fields is strictly prohibited and requires a fresh cheque.
2. To ensure image quality for digital clearing, cheques must be written using blue or black permanent ink.
3. Signing on the back of the cheque is prohibited in all circumstances.
2. To ensure image quality for digital clearing, cheques must be written using blue or black permanent ink.
3. Signing on the back of the cheque is prohibited in all circumstances.
✅ Correct Answer: C
Under CTS rules, alterations in key fields (payee/amount) are banned to prevent fraud; a fresh instrument must be used.
Blue or black permanent ink is mandated to ensure the digital image is legible.
There is no absolute prohibition on back-signing (e.g., for endorsements), provided it doesn't interfere with the magnetic ink line.
Blue or black permanent ink is mandated to ensure the digital image is legible.
There is no absolute prohibition on back-signing (e.g., for endorsements), provided it doesn't interfere with the magnetic ink line.