The benefits of the Cheque Truncation System(CTS) for the customers are:
- Clearance cycle gets shortenedÂ :Â As CTS system is being implemented, the physical or manual movement of cheques for clearance has ceased. With cheques being transmitted electronically, the settlement process becomes quicker, facilitating reduction in the clearance cycle.
- Cheques will not be lost:Â The fear of loss of cheques during transfer from the collecting bank to the drawee or payee bank is eliminated.
- No geographical restrictions as to jurisdiction:Â Limitations of the current clearance system with respect to jurisdiction and geography are eliminated.
- Reduction in fraud:Â CTS helps reduce the scope of fraud significantly. Moreover, the electronic transmission is quick and allows early detection of fraud or any alteration with respect to the payee, amount or the issuer of the cheque. CTS prescribe minimum security features under “CTS-2010 standards” along with superior verification process that further facilitates in the reduction of frauds.
- Enhanced operational efficiency:The operational efficiency of both the bank as well as the customer is enhanced with the introduction of Cheque Truncation System.