The Reserve Bank of India has asked banks to implement the image-based Cheque Truncation System (CTS) in all branches by September 30 this year. The move is aimed at faster settlement of cheques resulting in better customer service. The Apex bank said that to leverage the availability of CTS and provide a uniform customer experience irrespective of the location of her/his bank branch, it has been decided to extend CTS across all bank branches in the country. To facilitate this, banks will have to ensure that all their branches participate in image-based CTS under respective grids by September 30.
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About Image Cheque clearing system:
- There’s now a new way of clearing cheques more easily and quickly across the UK.
- The Image Clearing System allows banks and building societies to exchange images of cheques instead of moving paper around the country.
- This new approach means you can withdraw money much sooner.
What is Cheque Truncation System?
A cheque truncation system is an arrangement that facilitates the electronic processing of a cheque with the use of Magnetic Ink Character Reader (MICR) data and the scanned image of the instrument without involving any physical exchange or movement of the financial instrument.