RBI to introduce the pan-India Cheque Truncation System (CTS) from September 2020 to make cheque clearing safer, faster.
Bank cheque clearing process to get faster from Sept 2020
In the meeting of the Monetary Policy Committee, The Reserve Bank of India (RBI) has taken a major decision to introduce the pan-India Cheque Truncation System (CTS) from September 2020 which will directly benefit the bank customers. Till now, CTS is currently operational at the major clearinghouses of the country.
The Reserve Bank of India (RBI) said, “A pan India CTS will be made operational by September 2020.” We already know how real-time gross settlement (RTGS), Immediate Payment Service (IMPS), and National Electronic Funds Transfer (NEFT) are game-changers for the banking ecosystem. “CTS – Cheque Truncation System is a great move towards Digital India.
CTS makes the clearing cycle shorter and makes the clearing process partially electronic.
CTS has many advantages. like-
- Fake use of checks is impossible.
- CTS check clearing possible in 24 hours.
- Clearing facility in any bank anywhere in the country.
- No Chances of the missing check.
- Standard check system to be introduced by all banks.
In addition, CTS offers several benefits to customers and banks, including cost-effectiveness, human resource rationalization, better service, adoption of the latest technology, business process re-engineering, etc. to operational efficiency.