Introduction to Cheque Truncation System:
As per RBI Guidelines, pertaining for cheque clearing from 1st April 2013, all banks will have to comply with CTS – 2010 norms i.e. “Cheque Truncation System – 2010.”Â This involves scanning of cheque images and subsequent electronic movement/replication of these images within the system for processing and clearing of cheques.
Once the CTS-2010 is implemented it is expected:
- Cheques would be cleared within one day.
- Increase in overall efficiency.
- Reduction in scope of frauds and errors.
As part of the system, all banks would be using a standardized cheque format with security features.