Processing a cheque physically by presenting it to a bank can become hectic. So, nowadays people prefer the Cheque Truncation System (CTS). Cheque Truncation System (CTS) is the process of clearing cheques electronically rather than processing the cheques physically by showing the bank en route to the paying bank branch. This step was initiated by the Reserve Bank of India (RBI) so that cheques can be cleared quickly. This is what is CTS cheque means.
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Now that we know CTS clearing meaning, let us know the benefits of the CTS cheque.
As of now, we have heard that CTS will move towards digital India. We already have IMPS, RTGS, and NEFT payment methods which are quite popular. Nelito’s CTS has been quite successful among major public sector, private sectors and cooperative banks of India.
Some Benefits of CTS include:
Transferring money by physical transfer of cheques is eliminated.
There are fewer cheque frauds.
There is a lesser possibility of cheques getting misplaced in transit.
CTS is more advanced and secure.
The CTS process is quicker.
CTS reduces operational risks and risks related to paper clearing.
No extra amount is charged for cheques drawn on banks located within the grid.
This is the CTS clearing meaning in a nutshell. I hope I was able to clear doubts regarding what is CTS cheque.
Read more:
What is non CTS cheque?
How to Apply for cheque Book in SBI?
How Long Does it Take for a cheque to Clear?
How to Do RTGS Without cheque?
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What is CTS cheque?
Pankaj Rathore
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2 Year
2022-08-23T10:42:58+00:00 2022-08-24T18:07:52+00:00Comment
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