The Reserve Bank of India (RBI) has recently changed the rules of Cheque Clearance, under which the scope of CTS will be expanded and it will cover about 18 thousand bank branches. Simply put, now cheques will be cashed more quickly than before.
Delhi: The Reserve Bank of India (RBI) has decided to change the rules ofCheque Clearance. RBI has decided to increase the scope of the Cheque Truncation System, which will affect 18 thousand bank branches. According to the information, new rules will be implemented from September this year.
CTS will expand
RBI has decided to update all the remaining 18,000 branches to make the payment and settlement system more better, faster and accurate. Any branches that are not under the centralized clearing system ‘Cheque Truncation System’ will be brought under the CTS by September. CTS is being used since 2010 and there are already 1 lakh 50 thousand bank branches under its purview.
What is cheque truncation system
CTS ie Czech Truncation System ( Cheque Truncation System ) is a process of clearing Czech, which can not be relocated from one place to issued Czech makes walking. Actually, from where the cheque is deposited, the cheque is sent to the bank branch of the issuer of the cheque, due to which it takes more time to clear the cheque. Since 2010, cheques are cleared under CTS in India, in which around 1 lakh 50 thousand bank branches of the country are connected. Now the remaining branches will also be included in the scope of CTS soon.
Benefits of cheque truncation system
Cheques are cleared quickly through CTS. With this, customers get payment quickly. Apart from this, CTS also reduces the cost. Reduces problems associated with logistics. This benefits the whole banking system.
The cost of moving a cheque from one place to another is also eliminated. Therefore, the processing of the cheque is faster.
Today’s era may be a period of digital payment. We use Netbanking to transfer money from one account to another. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) are also popular for transferring money in few minutes. Apart from this, the UPI payment system has made things much easier. Many merchant facilities are available like Paytm, Googlepay, Phonepe but still the importance of cheque is not over. Cheques in the country still remain the main means of payment. In view of this importance of cheques, RBI has decided to increase the capacity of cheque clearance in a short time.
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