When was ctsa introduced

Motor Insurance. Other Risk Covers. Personal Finance News. Mutual Funds. Navneet Dubey. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. Till now, CTS was only operational in major clearing houses. The Reserve Bank of India RBI , in its Statement on Development and Regulatory Policies, said, "CTS, which is currently operational at the major clearing houses of the country, has stabilised well and it has made large efficiency gains.

Cheques continue to be one of the prominent modes of payments in India, and the speedy cheque clearance cycle through CTS will definitely result in better customer experience.

Not just for the customers, CTS will also make the process more efficient, cost-effective and safer for the banks. Your legal guide on estate planning, inheritance, will and more. The customer would get funds on completion of settlement process. In CTS scenario, the physical instrument is truncated at presenting bank end either at branch level or service branch level.

The return cycle would be completed next day. Further all clearing locations are divided in 3 regional grids. Benefits Customer Service Extended cut off time for acceptance of Customer Cheques by banks Easy retrieval of information Reduced timelines for clearing. Cost involved in paper movement eliminated Grid implementation allowing better liquidity management for banks.

CTS will be a great move towards Digital India. Cheques are still one of the prominent modes of payments in India, and the speedy cheque clearance cycle via CTS will definitely result in better customer experience. It will also make the process more efficient, cost-effective and safer for the banks.

The shift from the old system to the new cheque format essentially means that if you have given any post-dated cheques to your banks for loan EMIs you will have to replace them with new cheque leaves. And if you hold any post-dated cheques beyond 31st March you will have to arrange to get it replaced with a new Cheque Truncation System cheque. CTS is an efficient way of clearing cheques. It is in fact, better than the existing method.

This article attempts to explain CTS and its benefits both to account holders as well as banks. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing. In its place an electronic image of the cheque is transmitted with key important data.

Cheque truncation thus obviates the need to move physical instruments across branches. This effectively eliminates the associated cost of movement of physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing.

It is a system which is practised worldwide in the banking sector.