BANKING AFFAIRS

Detailed explanation-1: -Cheque Truncation System. (Updated as on October 31, 2022) 1. What is Cheque Truncation? Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch.

Detailed explanation-2: -Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing.

Detailed explanation-3: -Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques.

Detailed explanation-4: -An electronic image of the cheque is transmitted, and the physical cheque remains with the collecting bank. Q: What is the CTS cheque clearing time? Ans: The cheque clearing takes place on the same day or the following day.

Detailed explanation-5: -CTS or Cheque Truncation System is a process of clearing cheques through image-based verification. The electronic version of the cheque is sent for clearance with all necessary details such as MICR code, date and name of presenting bank.