What is the use of CTS cheques in India going to introduce shortly from April1,2013

In India Banking sector is very strong and it is well known to all and day by day all fields are getting modernized in that Banks are also in that. Earlier we are giving cheque and if also any correction and intial signature done near that. But now onwards these kind of correction made cheques are not accepted due CTS (Cheque Truncation System) system in India which is to be in live from April 1, 2013.

As per RBI guidelines they have made mandatory from January 1, 2013 but due to several reasons it has been postponed.

How the ordinary people will benefited from CTS?

People in business and all others are benefited due to this CTS. Yes if we are giving a local cheque but it is presented in an out station it takes nearly 7-15days for clearing purpose and banks may also debit some amount which is higher, for transporting and communication purpose expenses happened for that instrument(cheque). But now due to this CTS it can be easily made cleared and within couple of days the amount will be credited to the beneficiary.

Present Cheque Clearing system in Banks

Presently banks are sending the physical cheques to concerned banks, and they verify the Date,Accounts Balance, Signature Verification, Original Instrument and then the Cheque will be cleared. But now in CTS ,scanned image is being send to them and after verifying the cheque it will be cleared. After checking the genuineness of cheque and amount will be debited and credited to the party. If suppose the cheque is being bounced due to many reasons it may get delayed to get back to the party. Due to this Banks have many practical difficulties and each cheques of the banks seems to be differently printed currently.

Date,Client account number, Banks name, and identification mark is printed differently in all bank cheques but now in CTS cheques it is uninformly printed and updated with security precautions. Due to this current stage delay for local and out station cheques happen commonly.

How will be the CTS Cheques useful 

These kind of cheques has a separate columns for writing date, account holder number. CTS cheques have an void printed so easily fake cheques can be identified. Latest Rupee symbol is printed Due to this fake cheques can be identified while scanning the image.

CTS system more faster to receive money than now.


RBI announced to get effective from January 1, 2013 but due to different reasons like already many cheques would be issued by people for existing loans so to change with new CTS cheques RBI extended the dates till April 1, 2013.CTS cheques not only reduces the time for bank and also clients can receive their money more faster than now. Cheque Truncation System is partially followed by banks and not many different kind of procedures on the printed cheques. Clients and Bank account holders can must replace and approach their banks and get new cheque books and also modernized banks giving the facility to have a cheque book request through Online Net Banking and through ATM machines.Most probably bank account holders can have the cheque request slip teared and can give to bank and also whoever requesting in this December would receive the new CTS cheques. The main disadvantage of this is we are unable to make a correction in the cheque. It should be very clear and no striking should be there. Whoever failing to replace their cheque books will be in trouble after the desired period which given by RBI, so be in alert and advance to change with new cheque books. Avoid the last minute rush as bank staffs may be get tensed or unwanted excuses or delay can be avoided if we replace in well advance. So surely this article will be useful for all.


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