RBI extends cheque truncation system across all bank branches

RBI has recently decided to extend the Cheque Truncation System (CTS) across all bank branches by September 2021 in a bid for faster and smoother cheque clearances.

In a circular, RBI said, “To leverage the availability of CTS and provide uniform customer experience irrespective of the location of bank branch, it has been decided to extend CTS across all branches in the country.” It added, “Banks will have to ensure that all their branches participate in image-based CTS under respective grids by September 30, 2021.”

RBI also added that the banks are free to adopt a model of their choice, like deploying suitable infrastructure in every branch or following a hub and spoke model and concerned banks should coordinate with the respective Regional Offices of RBI to operationalise this system.

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