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Cheque Truncation System (CTS Cheque)

Information Technology and Computer science had an alarming growth in the past two decades. Definitely banking is one of the region where it reflected most. That’s why you do shopping with the help of plastic card. Still for large sum of money a cheque is being used today. Now that piece of paper also received a computerization called as Cheque Truncation system or CTS.

Well, what is CTS ??

Cheque Truncation System (CTS) is a policy that is undertook by the Reserve Bank of India (RBI) in year 2008. This came into action on the year 2013 April. This advancement in the technology will help you gain the efficiency you expect on a cheque transaction.

Magnetic Ink Character Recognition (MICR) is an old school technology that plays the heart of this technology. Each and every cheque paper contains a magnetic code that can only be read by a MICR reader. So the collector bank transfers these code to the bank having your account to verify credentials.

Does this benefits you?

Obviously, it does. If you got a cheque for a large sum usually the cheque physically needed to be carried to the parent bank for verification, but now instead they send the information’s like MICR field, date of presentation, bearer Info etc via internet to make the transaction easy and efficient.

Time efficiency , so you will get your credit money the same day
Faster transaction
Fraudulent free because the physical cheque doesn’t leave the bank.

How does this helps the bank?

Way better than before. Now banks can provide you better service because a lot of time and money is being saved in this process. Moreover efficient reconciliation provide the bank a faster transaction than before saving money and energy

A better banking experience means more cash flow thus a better future…