Cheque Truncation System (CTS) is the system in which the flow of physical movement of the cheque will be eliminated in the cheque clearing process. Instead, an electronic image of the cheque will be sent to paying branch through the clearing house along with relevant information like data on the MICR band, date of presentation, presenting bank, etc

This speeds up the process of collection of cheques resulting in better service to customers, Shorten the clearing cycle, speeder credit to account holders, reduces the scope of loss of instruments in transit, lowers the cost of collection of cheques, and removes reconciliation-related and logistics-related problems, thus benefiting the system as a whole.

CTS was introduced and implemented in the National Capital Region (NCR) Delhi in February ’08 for the first time in India. The number 2010 in ‘CTS-2010’ is because the guidelines for CTS came up in the year 2010.

All the CTS-2010 cheque should be clean, image friendly and over writing is not accepted because the cheque will be cleared through image based clearing system. Instruments not complying with CTS-2010 standards will continue be accepted but will be cleared at less frequent intervals.

Clearing sessions for Non-CTS 2010 instruments will run once a week on every Monday, from 1st Nov, 2014 onwards.

Sample copy of CTS cheque

cts cheque







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