Banks all over India are in the process of issuing fresh-look cheques with more security and standardized features to all its customers by December 31, 2012.
From January 1, 2013, cheques which do not conform to CTS-2010 standards would not be entertained by banks.
What is Cheque Truncation?
- We go to a bank and sign a Cheque … now, “Truncation” is the process of stopping the need for movement of the physical cheque (paper cheque leaves) from one bank’s branch to other bank’s branch.
- In its place an electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.
What is Cheque Standardization and what does CTS 2010 Standard mean ? What are the benefits of adopting CTS-2010 ? How would be the uniqueness of a physical cheque be captured and imparted to the cheque image ? How are the images of cheques taken ? What are the modes in which banks can participate in CTS ?