Cheque Truncation System
Cheque Truncation System https://www.fundstiger.com/cheque-truncation-system/ Cheque Truncation System or CTS is the cheque clearance system introduced by RBI to fasten up the clearing of cheques. In this system, instead of producing the physical cheques to the payee bank, just the electronic image of the cheque along with the MICR code and other cheque credentials are transmitted to the drawee bank for the payment through a clearing house. Benefits of Cheque Truncation System Cheque Truncation System brings elegance to the whole activity of cheque processing & clearing and offers numerous benefits to banks like time and cost savings, cost effectiveness, including human resource rationalization, business process re-engineering and enhanced customer service. Time, money and manpower expended on physical transfer of cheques from banks to clearing house are eliminated Clearing related frauds become less plausible Probability of cheques misplaced in transit is eli...