CTS
Also called Cheque Truncation System
Cheque Truncation System: cheques clear as scanned images instead of paper moving between banks.
Questions people ask
What is the cheque truncation system?
CTS is how cheques clear in India. Instead of sending the paper cheque to the payer's bank, the collecting bank sends a scanned image with its details. The payer's bank checks the image and pays, which is faster and safer than moving paper.
How fast do cheques clear under CTS now?
Usually the same working day. Since October 4, 2025, the RBI's continuous clearing settles cheques every hour, and banks must credit customers within an hour of settlement. A faster second phase was put on hold in December 2025, so check the current status with your bank.
Why does the cheque image matter?
Because only the image travels, a cheque that is smudged, overwritten or damaged may not scan cleanly and can be returned. Write clearly, avoid corrections, and keep the cheque flat.
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