CTS stands for Cheque Truncation System. It is a term related to Governmental & Banking, Useful Terms and Definitions which we use in daily life but we do not know their full name, Here’s a list of important abbreviations that you should know.
|CTS||Cheque Truncation System|
|Category||Governmental & Banking|
What is full form of CTS?
The full form of CTS is the Cheque Truncation System. Check Truncation System (CTS) or Image Based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), started in 2010, for faster clearing of the check’s.
CTS is based on a check truncation or online image-based check clearing system where check images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and they are transmitted electronically.
Here you learn the full name and complete information of Cheque Truncation System, if you have questions and answers related to CTS, then tell us your thoughts in the comment, know the complete meaning of CTS in this article.
Truncation is the process of stopping the flow of the physical check issued by a drawer at some point by the presenting bank en route to the paying bank’s branch. Check truncation thus avoids the need to move physical instruments through bank branches, except in exceptional circumstances for clearing purposes.
As of April 1, 13, the Check Truncation System (CTS) would be implemented, through which the flow of the physical movement of the check in the check clearing process would be eliminated. Instead, an electronic image of the check will be sent along with the relevant information.
If the check stub does not have CTS-2010 check sheets, they are called non-CTS check stubs. … On check truncation, the movement of the physical instrument stops and is replaced by electronic images and the associated MICR line of the check.
A check truncation system is an arrangement that facilitates the electronic processing of a check with the use of Magnetic Ink Character Reader (MICR) data and the scanned image of the instrument without involving any physical exchange or movement of the financial instrument.