BANKING AFFAIRS

Detailed explanation-1: -CTS enables fast and cheap realisation of funds to customers as compared to traditional mechanisms. Under grid-based CTS clearing, all cheques drawn on bank branches falling within in the grid jurisdiction are treated and cleared as local cheques.

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: -CTS Cheque: Instead of having the presenting bank process the physical check as it travels to the branch of the paying bank, the Cheque Truncation System (CTS) is a method for clearing checks electronically. Non-CTS Cheque: A non-CTS chequebook is one that has non-CTS cheque leaves.

Detailed explanation-4: -The full form of CTS is the Cheque Truncation System. It is a clearance system for cheques used by the Reserve Bank of India (RBI) for faster cheque clearances. Instead of using the cheque’s physical copy to complete the clearance process, CTC uses the electronic image and relevant cheque details.

Detailed explanation-5: -Cheque Truncation System (CTS) is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch. It is a step undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance.