A CTS cheque refers to a modern type of bank cheque processed electronically through the Cheque Truncation System.
It eliminates the need for the physical movement of cheques between banks. Instead, an electronic image of the cheque is sent for verification and clearance.
The CTS cheque full form is Cheque Truncation System cheque. Introduced by the Reserve Bank of India (RBI), this system was designed to speed up cheque clearing, minimise fraud and improve overall efficiency in the banking system.
Features of a CTS Cheque Leaf
A CTS cheque leaf has several unique features to ensure security and standardisation:
- A watermark with the words “CTS-INDIA” visible when held against light.
- The bank’s logo is printed in UV ink.
- A void pantograph that prevents unauthorised photocopying.
- The word “CTS-2010” is printed on the bottom left-hand corner, indicating compliance with RBI standards.
These features help banks verify authenticity during electronic processing.
CTS Cheque Clearing Time
The CTS cheque meaning lies in its ability to process cheque payments digitally. Unlike the traditional method, banks no longer exchange physical cheques. Instead, scanned images and MICR (Magnetic Ink Character Recognition) data are transmitted securely.
The CTS cheque clearing time is usually one working day for local cheques, making it much faster than the earlier 2-to-3 day process.
For instance, if you deposit a CTS cheque from your employer into your bank account, the electronic image of that cheque is sent to the clearing house.
Your bank receives confirmation within a day, and the amount is credited faster compared to the traditional paper-based process.In summary, a CTS cheque brings speed and transparency to banking transactions, benefiting both customers and financial institutions.
