Now, as part of an industry-wide initiative of the Kenya Banker's Association, we are introducing new cheques with these features and benefits:

• Faster payment with reduced processing times.
• Enhanced security features printed on special paper.
• Please note: No alterations will be allowed once the new cheques have been written.

Use only new cheques from 1st June, 2011.

New cheque books with new cheques will come into effect on 1st June, 2011. After this date your old cheques will no longer be processed through our normal clearing system and will take 21 days to clear.

To ensure there are no issues or delays with regard to the cheques you write, it's important to order your new cheque book now and issue only new cheques from 1st June onwards.

1. What is Cheque Truncation?

Cheque Truncation (CTS) is a system of cheque clearing and settlement between banks based on images and associated electronic payment data, without the physical exchange of the cheques.

2. How different is CTS from the current Clearing Process?

The current practice of transporting cheques from all bank branches countrywide to the Automated Clearing House using courier services will cease. Banks will instead use telecommunications links between their branches to send the cheque data for settlement.

3. What does the Cheque Truncation System mean for me?

The time it takes to transmit cheque data between banks will be drastically reduced. These savings in time will result in a faster clearing process and more accurate reconciliation of accounts. The reduction in paperwork will also reduce the fraud that comes from cheque substitution.

A faster Clearing process will eventually lead to a reduction in the clearing cycle, ensuring that you get your cleared funds sooner.

4. How are the new cheque books different?

The new cheque design incorporates a security watermark. Extensive use of new Ultra Violet sensitive paper, tamper-evident paper stock as well as Micro Text features on the cheques further enhances the security of the cheques. As part of the new standard, the cheque book size is 7 inches by 4 inches; currently known as the corporate size.

5. Why is this change in size important?

This size of the cheque is most suitable to contain enhancement in security features, as well as allow for the new scanners to effectively capture all the cheque details that will be transmitted in the electronic clearing process.

6. What do I have to do?

You must replace your existing cheque books with the new CTS compliant books by requesting / ordering them from your Standard Chartered branch in the usual manner.

As part of the new system, cheque design standards have been changed to enhance image qualities as well as security features. As part of the new standards, all cheques in the CTS environment will be in one standard size.

7. Is there a deadline for replacing my old cheque book?

Yes. The last date that has been set for the current design of cheque books is 31st May 2011. Old cheques will not be accepted by banks after 1st June 2011.