Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. Instead of this an electronic image of the cheque is transferred with vital essential data.
Cheque Truncation System brings elegance to the whole activity of cheque processing & clearing and offers numerous benefits to banks like time and cost savings, cost effectiveness, including human resource rationalization, business process re-engineering and enhanced customer service.
Reserve Bank of India (RBI) will be introducing pan-India CTS by Sept 2020 to make cheque clearing safer, faster.
CTS will be a great move towards Digital India. IMPS, RTGS and NEFT were the game changers for the banking sector. Cheques are still one of the prominent modes of payments in India, and the speedy cheque clearance cycle via CTS will definitely result in better customer experience. It will also make the process more efficient, cost-effective and safer for the banks
Nelito's CTS has been implemented successfully in major public sector, private sector and co-operative banks in India. With the implementation of grid-based Cheque Truncation System, cheque clearing process in general has gained speed and operational efficiency in addition to other benefits such as business process re-engineering, cost effectiveness, better service and adoption of cutting-edge technology.
Team Nelito is currently implementing the solution in Myanmar. Our product meets guidelines of the National Payment and Settlement Systems in Myanmar and works on the principle of a mechanized clearing system called Mechanical Clearing House System (MCH) by Central Bank of Myanmar (CBM).
Know more about FinCraftTM Cheque Truncation System.