Enable continuous cheque processing and settlement on realisation, helping banks accelerate cheque realisation and customer credit.
Transforming Cheque Clearing with Speed, Security & Efficiency
Request a DemoNelito Systems’ FinCraft™ Cheque Truncation System (CTS) is a secure and scalable that enables banks and financial institutions to process cheques through electronic image-based clearing instead of physical cheque movement.
FinCraft™ CTS automates cheque capture, validation, image processing, secure transmission, clearing, reconciliation, exception management, and settlement. It supports the evolving Continuous Clearing and Settlement on Realisation framework, helping banks reduce processing time, improve operational efficiency, strengthen security, and deliver faster cheque realization.
What is Cheque Truncation System (CTS)?
A Cheque Truncation System (CTS) is an electronic cheque clearing mechanism in which cheque images and relevant data are captured at the presenting bank and transmitted electronically through the clearing infrastructure instead of physically moving the cheque.
CTS helps banks:
- Eliminate physical movement of cheques
- Reduce cheque processing and clearing time
- Improve operational efficiency
- Reduce processing costs
- Strengthen cheque processing security
- Minimize risks of cheque loss, damage, or tampering
- Support CTS-2010 cheque standards
- Enable faster and more reliable cheque clearing
FinCraft™ CTS — Reimagining Cheque Clearing for the Continuous Clearing Era
Continuous. Intelligent. Secure. Reconciled. Scalable.
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Continuous Clearing
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FinCraft™ CTS — Reimagining Cheque Clearing for the Continuous Clearing Era
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Continuous. Intelligent. Secure. Reconciled. Scalable.
Continuous Clearing and Settlement on Realisation represents the evolution of CTS from traditional batch-based processing toward continuous presentation, processing, and settlement on realisation within the applicable clearing framework.
FinCraft™ CTS supports the applicable continuous clearing operating model, helping banks reduce processing delays, accelerate cheque realization, and improve customer service.
Schedule a DemoKey Highlights
Realise Faster
Process Smarter
Automate end-to-end inward and outward cheque clearing—from image capture, IQA, MICR/OCR and validation through processing, pay/return decisions and settlement—with minimal manual intervention.
Integrate Seamlessly
Enable deep CBS integration across account validation, balance/funds checks, holds/liens, debit/credit posting, returns and settlement through API-led integration.
Control with Confidence
Strengthen operational control with fraud and risk checks, automated reconciliation, configurable exception management, maker-checker controls, audit trails and real-time monitoring.
Scale for Tomorrow
Built on a configurable, API-ready, high-availability architecture designed to support evolving clearing volumes, operational requirements and integration with the banking ecosystem.
Key Features
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01. Digital Image-Based Processing
- Electronic processing of cheque images and related data
- Secure transmission through the clearing infrastructure
- Eliminates the need for physical cheque movement
- OCR and Data Extraction
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03. Secure Infrastructure
- Digital signatures
- End-to-end encryption
- Secure communication
- End-to-end authentication
- Comprehensive audit trails
- Role-based access and authorization
- Maker-checker controls
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05. Integration & APIs
- Integration with Core Banking Systems (CBS)
- Integration with payment gateways and enterprise banking applications
- Standards-based APIs for banking and payment ecosystems
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02. Continuous Processing
- Supports the RBI Continuous Clearing and Settlement on Realisation framework
- Enables cheques to be processed as they are presented within the applicable clearing window
- Reduces waiting time between presentation and processing
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04. Real-Time Monitoring
- Transaction status tracking
- Clearing progress visibility
- Operational dashboards
- Exception management
- MIS and operational reporting
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06. High Availability & Business Continuity
- Enterprise-grade architecture for high transaction volumes
- High availability and scalability
- Backup and failover capabilities
- Business continuity and disaster recovery support
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07. Exception, Return & Reconciliation Management
- Configurable exception workflows
- Returned cheque management
- Dispute handling
- Automated reconciliation
- Settlement processing
Security & Risk Management
FinCraft™ CTS incorporates multiple security and control mechanisms to protect cheque images, transaction data, and processing workflows.
- Secure image transmission
- End-to-end encryption
- Digital signatures
- Image Quality Assessment (IQA)
- MICR and cheque validation
- Duplicate cheque detection
- Signature verification
- Role-based access and authorization
- Maker-checker controls
- Comprehensive audit logs
Continuous Clearing Workflow
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Cheque Presentation
Customer deposits a cheque with the presenting bank.
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Image & Data Capture
The bank scans the cheque and captures the cheque image and MICR data.
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Secure Transmission
The cheque image and associated data are securely transmitted through the CTS clearing infrastructure.
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Validation & Processing
Cheque image and transaction data undergo applicable validation and processing checks.
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Paying Bank Processing
The paying bank verifies and processes the cheque in accordance with the applicable clearing framework.
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Settlement
Settlement is completed electronically based on the applicable CTS process.
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Customer Credit
The beneficiary receives credit following successful processing and settlement.
Benefits of Continuous Clearing
- Faster cheque realization
- Shorter cheque processing cycles
- Reduced processing bottlenecks
- Better customer experience
- Improved liquidity management
- Increased processing capacity during higher transaction volumes
- Reduced dependency on traditional batch-based processing
- Lower operational costs through automation and reduced manual intervention
Why FinCraft™ CTS?
FinCraft™ CTS combines secure image-based cheque processing, automated validation, workflow management, real-time monitoring, integration capabilities, and enterprise-grade security to help banks modernize cheque clearing operations.
As part of FinCraft™, Nelito’s flagship banking solution suite, the platform is designed to integrate with existing banking infrastructure and support the evolving requirements of modern cheque clearing and continuous clearing.
Who Can Benefit from CTS?
FinCraft™ CTS is designed for:
- Banks
- Cooperative Banks
- Regional Rural Banks (RRBs)
- Financial Institutions
- Payment Service Providers
- Banking Technology Service Providers
Frequently Asked Questions
What is Cheque Truncation System (CTS)?
Cheque Truncation System (CTS) is an image-based cheque clearing system in which cheque images and relevant data are transmitted electronically instead of physically moving cheques between banks. This helps reduce clearing time, improve operational efficiency, and strengthen cheque processing security.
What is Continuous Clearing?
Continuous Clearing and Settlement on Realisation is the evolving CTS processing framework that enables more continuous presentation and processing of eligible cheques, reducing the delays associated with traditional batch-based clearing.
How does Continuous Clearing benefit banks?
Continuous Clearing helps banks reduce processing delays, improve operational efficiency, increase clearing capacity, and enable faster cheque realization and settlement.
Is CTS secure?
Yes. FinCraft™ CTS uses secure image transmission, end-to-end encryption, digital signatures, authentication, image quality assessment, cheque validation, duplicate detection, access controls, maker-checker authorization, and audit trails to strengthen cheque processing security.
How does CTS improve customer experience?
By automating cheque processing and supporting continuous clearing, FinCraft™ CTS helps reduce processing delays, enable faster cheque realization, and provide improved transaction visibility.
Can FinCraft™ CTS integrate with Core Banking Systems?
Yes. FinCraft™ CTS integrates with Core Banking Systems (CBS), payment gateways, enterprise banking applications, and other banking ecosystems through standards-based APIs and integration interfaces.
What are the benefits of CTS for banks?
CTS helps banks accelerate cheque clearing, reduce manual intervention and processing costs, improve operational efficiency, strengthen security, enhance transaction visibility, support regulatory requirements, and deliver better customer service.
Modernize Cheque Clearing with FinCraft™
Transform cheque processing with FinCraft™ Cheque Truncation System (CTS) from Nelito Systems. Improve processing efficiency, strengthen security, reduce turnaround time, and support the evolving requirements of modern cheque clearing.
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