Search results
Apr 5, 2021 · Cheque Truncation System is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch.It is a step ...
Cheque truncation system is a step by step process to simplify the conventional means of cheque clearance. Following is the systematic procedure of CTS: In the last step, the drawee bank, after going through the data and image thoroughly can accept the cheque and further proceed with making payment.
Jan 20, 2024 · Since the cheque is not physically move to various departments, it remains safe and secure. There is no risk of any fraud being committed as the cheque lands in the secure hands of the bank employees. Cash a cheque anytime, anywhere. The cheque truncation system (CTS) has removed any geographical barriers when it comes to clearing a cheque.
Jan 17, 2024 · The Cheque Truncation System (CTS) is a technologically driven technique for processing physical paper cheques quicker with greater effectiveness. It is a technology that seeks to eliminate the need for paper cheques to be physically transported from one bank to another during the clearing process. Many countries use CTS to streamline and ...
Benefits of Check Truncation Faster Clearing Times. One of the most significant benefits of check truncation is the reduction in clearing times for checks, as electronic images or substitute checks can be transmitted between banks more quickly than physical checks, providing businesses and consumers with faster access to their funds.
An element of cost / charge may also be involved for the purpose. To meet legal requirements, the presenting banks which truncates the cheques need to preserve the physical instruments for a period of 10 years. These FAQs are issued by the Reserve Bank of India for information and general guidance purposes only.
Sep 23, 2022 · Cheque truncation is a mode of clearing cheques electronically. It involves settlement and clearing of cheques between banks without the physical exchange of any paperwork or the instrument itself. The purpose of a cheque truncation system was to quicken the pace at which cheques are cleared. This system has significantly influenced the time ...
