The full form of CTS is Cheque Truncation System. This is a digital system to issue a cheque without physically being present at the bank. Additionally, this was a service of RBI that came into existence in February 2008. This is a digital image reader of the cheque for faster issuing and effective performance. The RBI made it available in the National Capital Region. The Technique works like this: you click the photo of the cheque along with the MICR number on it. Also, the system reads it digitally and verifies the identity. This way we can issue check very fastly.
CTS is known as Cheque Truncation System. It is a type of digital system to issue a cheque without physically being present at the bank. CTS is a digital image reader of the cheque for faster printing and effective performance, and its services come under RBI. This makes this platform reliable for any employee.
Furthermore, there are certain benefits to using the CTS in our normal banking. There are certain frauds and other issues with physical cheques. Moreover, some employees might lose the cheque in other forms. To solve this problem and many others CTS is now available. There is no movement of the issuer to the bank. Moreover, it is extra safe as the images are encrypted on both ends. This makes this platform reliable for everyone. With no movement whatsoever, the issuer feels very happy by using this service. Additionally, the CTS pushes us towards a digital and better India.
Cheque Truncation System (CTS) also known as Image-based Clearing System “ICS”, in India “project of RBI” (the Reserve Bank of India )
this system commenced in 2010, for the clearing of cheques at a low cost of time.
CTS this system is based on a cheque truncation where cheque images and “MICR”(magnetic ink character recognition ) its data captured by a branch of collecting bank and transmitted to the objective electronically.
CTS has been implemented in New Delhi, Chennai, and Mumbai with effect from February 1, 2008, September 24, 2011, and April 27, 2013, respectively. A specific scanner is used to take the images of the cheques. A black and white image is also called a binary image. CTS also benefits issuers of cheques.
There are various benefits of the Cheque Truncation System (CTS) such as time and cost savings, cost effectiveness, enhanced customer service, etc. CTS initiative has made India proceed towards Digital India. There is a feature of watermarks and bank logos printed using special ink visible only under UV scanners.
| Term | Full Form |
| CTS | Cheque Truncation System |
FAQ’s
This is a digital system to issue a cheque without physically being present at the bank. Additionally, this was a service of RBI that came into existence in February 2008.
CTS is short form of Cheque Truncation System.
Cheque Truncation System is full form of CTS.
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