Cheque Truncation System (CTS)


Cheque Truncation System (CTS) is a cheque clearing system undertaken by Reserve Bank of India (RBI) that aims at reducing the time involved in cheque clearing to one day. Thus, it is considered as the major landmark in the Indian Banking industry.

As per the revised RBI Guidelines, the deadline of use of non CTS compliant cheques have been further extended till 31st December 2013.

How does it work

Cheque Truncation System is an online image-based cheque clearing system which involves scanning of cheque images and subsequent electronic movement / replication of these images within the system for processing and clearing of cheques.

Impact of CTS on people issuing Cheques

  • Handling EMIs for ongoing Loan: Customers now have to issue the new cheques (CTS compliant) for the payment of monthly installment towards an ongoing loan.
  • Encashment of Old Cheques: If you have an old cheque then you should get it encashed before CTS is implemented to get it honoured.
  • Cancellation of Old Cheque Books: The customers need to surrender their old cheque books and apply for fresh CTS complaint cheque book. There will be replacement fee charged by the bank.
  • Further there is no change in the process of issuing cheques for the customers; however cheques that have been altered or modified will not be permissible in the new system.

Benefits of using ChequeMan for CTS-2010 Cheques

  • Cheques printed from ChequeMan are 100% CTS complaint.
  • Properly printed cheques are more scan friendly.
  • The chance of cheques getting dishonoured / bounced due to new CTS rules is almost zero.
  • Consistency in print quality and ink.
  • It prints error free, with no overwriting and no correction, cheques.
View Presentation
for error free Cheque Printing
View Presentation for error free Cheque Printing

Clients Speak