What is CTS cheque?

What is CTS cheque?

Cheque Truncation System
Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing.

What is CTS cheque Leaf?

Cheque Truncation System (CTS) is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch. It is a step undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance.

How can identify CTS cheque?

How to identify if your cheques are CTS 2010 compliant?

1. Bank/branch address with IFSC code will be printed on the top left corner of the cheque.
2. Standard date format.
3. Printer name along with ‘CTS 2010’ printed on the extreme left of the cheque.
4. Bank logo on the centre of the cheque.

Which feature is common in both CTS cheque and non-CTS cheque?

With images form of a cheque, the bank sends its information like MICR code, date of presentation, presenting bank, etc. In a CTS cheque a watermark is mention in cheque but in a non-CTS cheque, it is not available. non-CTA cheque also accepted by banks but on a frequent basis.

What is CTS cheque and non CTS cheque?

If the cheque book is not with CTS-2010 cheque leafs, they are referred to as non-CTS cheque books. In cheque truncation, the movement of the physical instrument is stopped and replaced by electronic images and associated MICR line of the cheque.

How CTS Cheques are cleared?

Under CTS, physical cheques are retained at the presenting bank and don’t move to the paying banks. Instead, an electronic image of the cheque is transmitted to the paying branch through the clearing house along with relevant information like data on the MICR band, presentation date and presenting bank.

Is CTS cheque mandatory?

The Reserve Bank of India (RBI) recently made it mandatory for all banks to implement Cheque Truncation System (CTS) in all their branches across the country by September 30, 2021. The Cheque Truncation System (CTS) has been in use since 2010 and currently extends to around 1,50,000 branches.

What is CTS return?

The main objective of Cheque Return Policy is to identify the situations under which an instrument presented by the presenting bank, in either CTS or MICR clearing, is returned. An instrument may not be honoured owing to a single reason or due to multiple reasons. Return of collection cheques received by post.

What is CTS cheque and non-CTS cheque?

Is CTS cheque compulsory?

What can I do with a non CTS cheque?

Worth mentioning here is that most banks have already stopped clearing non-CTS cheques since January 1, 2019. So if you are still holding a non-CTS cheque book, then you should ask your bank to issue a fresh cheque book. All the banks are now required to issue CTS-2010 cheques only.

When was CTS clearing started?

CTS has been implemented in New Delhi, Chennai and Mumbai with effect from February 1, 2008, September 24, 2011 and April 27, 2013 respectively. After migration of the entire cheque volume from MICR system to CTS, the traditional MICR-based cheque processing has been discontinued across the country. 4.