RBI asks banks to implement image based Cheque Truncation System in all branches by September 30
The Reserve Bank of India on Monday asked banks to implement the Image based Cheque Truncation System (CTS) in all branches by September 30, this specially aims at faster settlements of cheques resulting in better customer service. Recently by the last month, the Reserve Bank of India had announced pan India coverage of Cheque Truncation system by proposing all bank branches under the image based clearing mechanism.
The CTS is in use since 2010 and presently covers around 1,50,000 branches. There are about 18,000 bank branches that are still outside any formal clearing aggrement.