RBI Asks Banks to Implement Image-Based Cheque Truncation System in All Branches by September 30

On Monday, the Reserve Bank of India (RBI) asked all banks to extend the electronic image-based Cheque Truncation System (CTS) by September 30th in all branches across the country. This move is expected to make cheque settlement faster and will result in better customer service.

More than 18,000 bank branches are still not using any formal clearing arrangement. Last month, the RBI proposed to bring CTS to all branches by September 2021. This will bring operational effectiveness in paper-based clearing and make the process of collection and settlement of cheques faster. Banks are using CTS since 2010 and currently, it is available in almost 1,50,000 branches.

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