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How CTS Cheque Books Benefits to You

CTS or Cheque Truncation System is also referred as Image Based Clearing System that was initiated in India by Reserve Bank of India. This benefits of CTS Cheque books method was adopted for delay free clearance of the cheques. This is process that is an online system that works on images based Cheque clearance system and involves capturing the images of cheques through Magnetic Ink Character Recognition at the bank where collection is to be made and then the electronic transmission is done.

The term truncation can be referred as eliminating the process of physical cheques that have been issued by any drawer to the drawees branch. Now the physical truncation of the cheques have been eliminated and instead  electronic image of cheque is transferred to the drawees branch with few of important and pertinent information like the MICR code, Cheque date and the name of the bank that is presenting Cheque.

The other benefits of CTS Cheque books are that it eliminates the movement of physical cheques through the various branches of banks. This would further eliminate the time respond in the clearance of cheques, the reduction in the cost of transition and any delays that happens during the physical processing of the cheques and further this has been reduced processing of the amount collection.

There are multiple benefits that the banks can get through use of CTS and these benefits can be declared as the reduction in time of cheque clearing cycle and thus the clearance of cheque on the same day of issuance. The improvised verification process and improved customer service. The use of CTS helps reduction in revenue that is involved in the physical transaction of cheque and also it reduces the risk involved in tracking the route of cheque transmission. It also helps in the minimization of any error that can otherwise happen in the manual process. This also increase the customer satisfaction since the cheque clearance time will be reduced which is otherwise high in manual system.

Implementation of CTS will help reduction of turnaround time and thus gives satisfaction to the customer with early clearance of the cheques. This also reduces the overhead that is otherwise required in the manual procession of cheque clearance. The process of CTS reduces the risk of fraud and thus providing satisfaction to the customers.

The method was firstly laid in the NCR by RBI and implemented from 27th December 2007.

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