‘Cheque Truncation System (CTS) – 2010 Standard’ is a set of benchmarks set to achieve standardisation of cheques issued by banks across the country. It includes some of the mandatory security features on cheques such as quality of paper, watermark, bank’s logo in invisible ink, void pantograph and standardisation of field placements on cheques.
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Introduction to Cheque Truncation System (CTS)
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.