RBI asks banks to implement image-based Cheque Truncation System in all branches by September 30

RBI asks banks to implement image-based Cheque Truncation System in all branches by September 30

• The Reserve Bank of India has asked banks to implement the image-based Cheque Truncation System (CTS) in all branches by September 30, 2021.
• The CTS clearing mechanism will bring operational efficiency in paper-based clearing and make the process of collection and settlement of cheques faster resulting in better customer service.
• The CTS is in use since 2010 and presently covers around 1,50,000 branches. However, there are about 18,000 bank branches that are still outside any formal clearing arrangement.
• Therefore to help these bank branches leverage the availability of CTS and provide uniform customer experience irrespective of location of her/his bank branch, it has been decided to extend CTS across all bank branches.