CTS: Cheque Truncation System
CTS Full Form
CTS full form stands for Cheque Truncation System. The Check Truncation System (CTS) is a scheme of the Reserve Bank of India (RBI).
It was launched in 2010 to clear checks in India. Based on the experience gained and the benefits to consumers and banks, it was decided to implement CTS across the country.
CTS is based on a check truncation or online image-based clearing system where check image and magnetic ink character recognition (MICR) data are electronically collected and transferred to the bank branch.
A physical device is cut at a location on the way to the draw branch and an electronic picture of the check will be sent to the draw branch for relevant information such as MCR fields, exposure dates, presentations to banks, etc.
- The Reserve Bank of India had earlier implemented CTS with ten pilot banks in the National Capital Territory, New Delhi from February 1, 2008, and the deadline for all banks was April 30, 2008.
- This was followed by the launch of CTS in Chennai on 24 September 2011.
- After migration from MICR to CTS, traditional MICR-based check processing in NCR and Chennai was stopped.
- Banks have gained many benefits through the implementation of CTS full form (Cheque Truncation System), such as rapid clearing cycles, which means that it is technically possible to process checks on a single day.
- It provides better understanding/recognition, better customer service, and a better customer window. Operational efficiency gives a direct boost to the lower areas of banks as clearing local checks is a low-cost income activity.
- It reduces operational risk by securing the transmission route. The central image archival system ensures that data collection and retrieval are easy.
What Is The Full Form Of CTS?
CTS full form stands for Cheque Truncation System. The Check Truncation System (CTS) is a scheme of the Reserve Bank of India (RBI). CTS is based on a check truncation or online image-based clearing system.
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