What is CTS and how it's reduced TAT of clearing

Question

Accepted Answer

CTS stands for Cheque Truncation System. It reduces the Turnaround Time (TAT) of clearing cheques.

CTS is a system implemented by banks to eliminate the physical movement of cheques during the clearing process.
Under CTS, instead of the physical cheque, an electronic image of the cheque is transmitted for clearing.
This eliminates the need for physical transportation of cheques between banks, reducing the time taken for clearing.
CTS has significantly reduced the TAT of clearing cheques, making the process faster and more efficient.
With CTS, the clearing process that used to take days can now be completed within a few hours.
The use of CTS has also reduced the chances of fraud and tampering associated with physical cheques.
Banks have implemented various security features in CTS to ensure the authenticity and integrity of the electronic images.
Overall, CTS has revolutionized the clearing process, making it quicker, safer, and more reliable.

Accepted Answer

a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance.

Accepted Answer

Cheque Truncation System (CTS) is a process of clearing cheques electronically rather than processing the physical cheque by the presenting bank en-route to the paying bank branch

What is CTS and how it's reduced TAT of clearing

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