RBI asks banks to implement Cheque Truncation System in all branches

Reserve Bank of India has asked banks to implement the image-based Cheque Truncation System (CTS) in all branches by September 30 this year. The move is aimed at faster settlement of cheques resulting in better customer service.Last month, the RBI had announced pan-India coverage of CTS by bringing all bank branches under the image-based clearing mechanism. There are about 18,000 bank branches that are still outside any formal clearing arrangement.
The Apex bank said that to leverage the availability of CTS and provide uniform customer experience irrespective of location of her/his bank branch, it has been decided to extend CTS across all bank branches in the country. To facilitate this, banks will have to ensure that all their branches participate in image-based CTS under respective grids by September 30. The CTS is in use since 2010 and presently covers around 1,50,000 branches. All the erstwhile 1,219 non-CTS clearing houses (ECCS centres) have been migrated to CTS effective September 2020. "To leverage the availability of CTS and provide uniform customer experience irrespective of location of her/his bank branch, it has been decided to extend CTS across all bank branches in the country," it said in a circular.