A. A Brief Overview

B. On The Benefits And Features Of CTS
Q1. What are the benefits of CTS?
Q2. Does CTS apply to cheques denominated in any currency?
Q3. What happens should I receive an 'old' (not in the CTS format) cheque?
Q4. Is there any change to the current cheque clearing times?
Q5. Can I still deposit local USD cheques into my SGD accounts?

C. On The Image Return Document (IRD)
Q6. What is an Image Return Document (IRD)?
Q7. How can I be certain that the IRD is an authentic document?
Q8. What are the benefits of the IRD over the usual return cheque process?
Q9. What should I do when I receive an IRD?
Q10. How should I present an IRD?
Q11. What must I do if an IRD cannot be presented?
Q12. Can I present an IRD if it is crumpled or stained?
Q13. Can I make any alteration on the IRD? For example, can I get the drawer to sign on the IRD if there is a missing signature?
Q14. Can I present the IRD if it has been torn inadvertently (for instance, if I tore it accidentally while trying to detach the IRD along the perforated line)?
Q15. What should I do if I have lost the IRD?
Q16. Can I present an IRD to the Bank for cash payment over the counter?
Q17. I feel more comfortable holding a physical cheque instead of the IRD. Can I exchange the IRD for a physical cheque?
Q18. Are there any charges imposed on the depositor when the Bank issues an IRD?
Q19. Does the IRD apply to foreign-issued cheques?
Q20. If I present an IRD and it is returned, will I get back the same IRD again?

D. On The Revised Terms & Conditions Governing Accounts & Services
Q21. Is there any change to the Terms & Conditions governing my account?
Q22. Where can I view the revised Terms & Conditions?

A. A Brief Overview

On 12 July 2003, the banking industry in Singapore launched a new online image-based cheque clearing system called the Cheque Truncation System (CTS). With CTS, a cheque is scanned when deposited and its electronic image, instead of the physical cheque, is transmitted throughout the entire clearing cycle.

In preparation for CTS, the local banking industry had adopted a new one-sized CTS cheque for both corporate and individual customers. These CTS cheques were issued to customers way ahead of the launch of CTS so that they would be familiar with using the new cheques. From 1 July 2002, cheques that are not in the new CTS format were no longer accepted by banks for deposit and payment.

B. On The Benefits And Features Of CTS

Q1. What are the benefits of CTS?
CTS enhances the operational workflow of banks by eliminating the need to move cheques physically from one bank to another. This would enable the banks to enjoy greater efficiency and provide better service to their customers. Ultimately, CTS will raise all participating banks to a higher and common platform in their cheque processing operations.

Q2. Does CTS apply to cheques denominated in any currency?
Only SGD cheques and local USD cheques are cleared through CTS.

Q3. What happens should I receive an 'old' (not in the CTS format) cheque?
We advise customers who are in receipt of such 'old' cheques to request cheques in the CTS format from the drawer(s).

Q4. Is there any change to the current cheque clearing times?

For SGD Cheques
There is no change to the current clearing times for SGD cheques.

SGD cheques deposited at any UOB Group branch before 3pm on weekdays or before 11.30am on Saturdays will continue to be cleared within the same day. Funds will be available after 2pm on the next working day, provided that the cheques are good for payment.

For USD Cheques
Customers now enjoy a later cut-off time and a shorter clearing time for local USD cheques. They can now deposit their local USD cheques at any UOB Group branch before 1pm (instead of before 10am) as well as benefit from a reduced clearing time of two days (instead of three days).

Q5. Can I still deposit local USD cheques into my SGD accounts?
Yes, you can continue to present local USD cheques for deposit into your SGD accounts. The presenting bank will quote the exchange rate and clear the cheque(s) via the USD clearing mode.

C. On The Image Return Document (IRD)

Q6. What is an Image Return Document (IRD)?
An IRD is a legally accepted document that is a substitute of a dishonoured cheque. The IRD serves as a notice of dishonour and replaces the original physical cheque for the purpose of re-presentment for clearing under CTS.

Please view this image to find out more about the features to look out for in an IRD.

Q7. How can I be certain that the IRD is an authentic document?
The IRD contains the front and back images of the original physical cheque and is printed on paper bearing the CTS watermark. Every IRD also bears a serial number for strict control purposes.

Q8. What are the benefits of the IRD over the usual return cheque process?
The IRD offers the following benefits over the usual return cheque process.

• The IRD conveniently contains, in one document, the following information:
  - the reason for its return
  - whether it can or cannot be presented
  - the validity period for its presentment
  - the number of times the cheque has been re-presented
  
• The IRD is also more secure as alteration is not allowed, thereby eliminating the possibility of unauthorised alterations.

Q9. What should I do when I receive an IRD?
You should refer to the boxed column at the bottom half of the IRD. You will find, clearly indicated in the box, the following information: whether you can present the IRD and the conditions under which you are able to do so.

Q10. How should I present an IRD?
You can present the IRD over the counter or drop it into the Cheque Deposit Box at any branch of the same bank that you originally deposited the cheque. Please ensure that your Name, Account Number and Contact Number are written behind the IRD.

Q11. What must I do if an IRD cannot be presented?
You should return the IRD to the drawer in exchange for a new replacement cheque. The replacement cheque should address the reasons for the return of the IRD in order that it can be cleared successfully through CTS.

Q12. Can I present an IRD if it is crumpled or stained?
Yes. An IRD can be presented so long as it is valid for presentment, not altered or mutilated.

Q13. Can I make any alteration on the IRD? For example, can I get the drawer to sign on the IRD if there is a missing signature?
Alterations are not allowed on the IRD as an altered IRD will not correspond to the stored cheque image in CTS. We advise you to request another cheque from the drawer in such a circumstance.

Q14. Can I present the IRD if it has been torn inadvertently (for instance, if I tore it accidentally while trying to detach the IRD along the perforated line)?
No. As an IRD is a substitute of a dishonoured cheque, the torn IRD will be regarded as a torn cheque. We advise you to request another cheque from the drawer in such a circumstance.

Q15. What should I do if I have lost the IRD?
As an IRD is a substitute of a dishonoured cheque, the lost IRD will be regarded as a lost cheque. We advise you to request another cheque from the drawer in such a circumstance.

We also advise the drawer to place a 'Stop Cheque' instruction on the lost IRD.

Q16. Can I present an IRD to the Bank for cash payment over the counter?
An IRD can only be presented for clearing and not for encashment. However, if the original cheque is valid for encashment, you may request to exchange the IRD for the physical cheque at the bank's discretion. In such cases, you would have to surrender the IRD and pay a service charge of S$50 for each physical cheque requested.

Q17. I feel more comfortable holding a physical cheque instead of the IRD. Can I exchange the IRD for a physical cheque?
Please be assured that under the Bills of Exchange Act, the IRD is recognised as a legally accepted document that replaces the physical cheque for re-presentment. In addition, every IRD bears such security features as the CTS watermark and a serial number for strict control purposes.

Q18. Are there any charges imposed on the depositor when the Bank issues an IRD?
No, there will not be any charges as the IRD is a replacement of the physical returned cheque.

Q19. Does the IRD apply to foreign-issued cheques?
All cheques cleared via CTS will be issued an IRD if they are returned.

Q20. If I present an IRD and it is returned, will I get back the same IRD again?
No. A new IRD will be generated for each return of the same cheque. Therefore, if an IRD is presented and subsequently returned, another IRD will be generated stating clearly that it is the second IRD.

D. On The Revised Terms & Conditions Governing Accounts & Services

Q21. Is there any change to the Terms & Conditions governing my account?
Yes. With the new CTS, please take note that our Terms & Conditions Governing Accounts & Services (T&Cs) have been amended accordingly.

Q22. Where can I view the revised Terms & Conditions?
You can view the revised T&Cs online, or obtain a copy at any UOB Group Branch.

For more information on CTS, please call us at 1800 222 2121 (24-hour, -toll-free).