Do you know What is Cheque Truncation System or CTS 2010

RBI has decided to launch this CTS or Cheque Truncation System and all banks across India are required to follow RBI guidelines in this rega...

RBI has decided to launch this CTS or Cheque Truncation System and all banks across India are required to follow RBI guidelines in this regard. As per RBI guidelines, now all banks have to issue cheques conforming to the CTS 2010 standards with uniform features. Under the CTS system, the physical movement of cheques between banks will be eliminated. Now under CTS, instead of physical movement of the cheque, an electronic image of the cheque will be transmitted to the drawee branch / bank. The presenting bank will retains the physical cheque. Along with the electronic image, certain key relevant information is also transmitted, such as date of presentation, presenting bank details, data on the MICR band. The system will also help in speed clearance of chequess and thus customers will be able to get faster credit to their accounts.