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.” 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.