We advise that Bank Negara Malaysia (BNM) will be replacing the existing SPICK cheque clearing system with Cheque Truncation and Conversion System (CTCS) with the aim of improving the operational efficiency of the cheque clearing system. To facilitate the forthcoming implementation of CTCS, a new cheque design standard and specifications as prescribed by BNM was introduced from 1st July 2007 with the following changes:-

• Standard cheque size of 3.5” x 7” for both company and personal cheques and all other clearing instruments.
• Incorporation of Date Box in DDMMYY format.

The old design cheques will still be accepted for clearing for the time being but will be disallowed with effect from 30th June 2008 or until such other date determined by Bank Negara. Customers are requested to apply for their new design cheque book which are available now. Old design cheques which are unused as at 30th June 2008 may be returned to the Bank for cancellation and refund of stamp duty.

Customers are further advised of the following procedural changes with the implementation of CTCS.

Use of Company Stamp/Personal Seal on Cheques

The use of Company Stamp or Personal seal on cheques will not be allowed with effect from 30th June 2008. Cheques bearing such stamps or seals will be rejected after this date. This notification shall supersede any prior or existing mandates given to operate such current accounts with rubber stamps, chops and personal seal affixed thereto. However, for company accounts, Company Stamp should continue to be used in cheques which do not bear the company number, provided these cheques are issued and submitted for clearing before 30th June 2008.

Banker’s Acceptance, Drafts and Cashier’s Orders for Customers with Trade Facilities

Bankers Acceptance, Drafts and Cashiers Orders will need to conform to the new CTCS guidelines. Any company stamp or seal used on the instrument should be restricted to the company name and business registration number only with font type Helvetica, font size 6 point bold.