A Reserve Bank of India (RBI) project that uses an online image-based system to clear checks. CTS eliminates the need to move physical checks by capturing images and Magnetic Ink Character Recognition (MICR) data at the collecting bank branch and sending themThe Cheque Truncation System is the flow of cheques issued by a drawer to the drawer branch. All the processing takes place electronically. The image of the cheque is forwarded to the drawer branch. The relevant information is verified. The contents verified are MICR fields and the date of representation of the cheque. The sole purpose of the system is to bring down transit and processing time for physical banking tools. Cheques could be processed easily and bring down transit costs. In a fast economy like ours bringing down processing, periods is vital. The efficiency of the system helps us deal with delays better. Since details are processed electronically at every stage, room for error is lowered. The CTS system is operational with most major banks. CTS cheques offer enhanced security. The Bank details are only visible through UV scanners. It also utilizes watermarks. The electronic representation of cheques has been praised by businesses and corporates. In an economy the role of time is pivotal. Every business works on a no-time wastage policy. electronically.

Benefits

Customer Service

• Extended cut off time for acceptance of Customer Cheques by banks

• Easy retrieval of information

• Reduced timelines for clearing

• Faster: CTS reduces the time it takes to clear checks, and customers can receive the proceeds from a check on the same day. 
• More secure: CTS uses MICR readers and UV scanners to verify the authenticity of each check. It also has a comprehensive security architecture that includes dual access control, user IDs, and passwords. 
• Cost savings: CTS reduces the cost of physically moving checks. 
• Operational security: CTS reduces the risk of fraud and clerical errors.