Extension of Cheque Truncation System (CTS) across all bank branches in the country

Last updated: 16 March 2021

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The Reserve Bank of India (RBI) has announced the extension of the Cheque Truncation System (CTS) to cover all bank branches across the country. This move aims to provide a uniform customer experience by enabling image-based CTS clearing, regardless of a customer's branch location. Banks are required to ensure all their branches participate in CTS by September 30, 2021.

Reserve Bank of India RBI/2020-21/107 DPSS.CO.RPPD.No.SUO 21102/04.07.005/2020-21 March 15, 2021 The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Local Area Banks / Payment Banks / Small Finance Banks / National Payments Corporation of India Madam / Dear Sir, Extension of Cheque Truncation System (CTS) across a

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FAQ :

The Cheque Truncation System (CTS) is an image-based cheque clearing mechanism that has been in use since 2010.

The extension aims to provide a uniform customer experience and address the hardships faced by customers of branches outside formal clearing arrangements, who experienced longer collection times and higher costs.

All bank branches must participate in image-based CTS under their respective grids by September 30, 2021.

Banks can choose their preferred model, such as deploying suitable infrastructure in every branch or adopting a hub and spoke model.

Banks are advised to inform the RBI about their roadmap to achieve pan-India CTS coverage and submit a status report before April 30, 2021.

Notification No : RBI/2020-21/107 DPSS.CO.RPPD.No.SUO 21102/04.07.005/2020-21
Source : https://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=12039

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