Cheque truncation system

From January 1, banks will follow more efficient and secure payment settlement system (Cheque Truncation System) in which they will only honour cheques embedded with new features.

HOW CTS will work

• CTS will clear cheques based on electronic  images

• Physical transfer of cheques between banks will end

• Average time CTS will take to clear cheques is one day

WHY CTS

• Time,Money and manpower spent in physical movement of cheques from banks to clearing house is eliminated

• Clearing related frauds become less probable

• Possibility of loss of cheques in transit eliminated

CTS cheques highlights

• All CTS cheques carry a watermark, with the words “CTS-INDIA”, which will become visible when held against light source.

• Pantographs with hidden/embedded word “VOID” which will become clearly visible in photocopies of cheque.

Prohibiting alterations / corrections on cheques: No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations. This rule will be applicable on branches in which CTS clearing system will start wef 01.01.2013