Know more about the Cheque truncation system
Saturday - February 8, 2020 2:18 pm ,
Category : WTN SPECIAL
Now Cheque’s to be clearer easier than before
The RBI takes a major step towards digitization, digital payment index to be released soon
FEB 08 (WTN) - In this era of internet technology, the Modi government is paying a lot of attention to digital transactions. In fact, the intention of the Modi government is that a maximum number of transactions in the country should be done in a digital way which will not only curb black money, but it will also bring transparency in the transactions. In this context, the method of payment by Cheque in the entire country is going to be digital. Yes, if you do a transaction through a Cheque, then for your information, let you know that now a new Cheque Truncation System is going to be started in the whole country. What is this new Cheque Truncation System? Let us tell you about it in detail.
For your information, let us know that the Central Bank of India, i.e. the Reserve Bank of India, has announced to implement Cheque Truncation System (CTS) across the country by September 2020. That is if you have non-CTS Cheque s, then the bank will not accept them from the month of September. Let you know that under the CTS system, the Cheque is sent electronically in the form of a photograph instead of sending the Cheque to the concerned bank. The CTS process of Cheque clearing was initiated in the National Capital Region on the basis of a pilot project in 2008, after which the RBI took steps to implement it in other cities of the country, under which it was implemented in Chennai in September 2011 and in Mumbai in April 2013.
Let you know that in the Cheque truncation system, there is no need to send Cheque s from one bank to another to clear the Cheque. Under this system, only electronic copies of Cheque s are offered. According to the Reserve Bank, this system reduces the cost of moving Cheque s from one place to another. Also, the time taken to collect the Cheque from this system is also saved. At the same time, it is being claimed that the whole process of Cheque processing with this system will be easier than before. By the way, for your information, let us know that the Cheque truncation system has been adopted in many countries of the world.
Note that under CTS, banks use scanned copy instead of the physical copy of the Cheque for Cheque settlement. Since the entire process goes electronic, the Cheque clearing time in CTS is considerably shorter than before. At the same time, it has been observed that many times the Cheque s are lost during the physical clearing, due to which the Cheque settlement is delayed, but now the Cheque clearing system will not delay the Cheque clear even after the Cheque is lost. By the way, it takes three days to clear the Cheque by the old method, but after the Cheque truncation system, the Cheque is claimed to be cleared within 24 hours.
You may be wondering how to find out if your Cheque book is with CTS? So for your information, let us know that if the CTS-2010 Cheque is not written on the Cheque -in your Cheque book, it means it is a non-CTS Cheque book. Whether you also have an old Cheque book, then immediately change your old Cheque book in the new CTS Cheque book. And if you have an old Cheque book, you can go to the bank and get a new CTS Cheque book from the bank in exchange for the old Cheque book, and for this, the bank will not charge you anything. By the way, most of the banks have already stopped clearing non-CTS Cheque s from January 1, 2020.
According to the Reserve Bank, digital payments in India are growing rapidly, and for this reason, the Digital Payments Index (DPI) will be released soon. It is being said that the DPI will be prepared and published by the Reserve Bank on a regular basis so that the digitization in payments can effectively be detected. It can be said that with this step of the Reserve Bank, the process of clearing the Cheque will be easier and faster than before. At the same time, the use of this system will not allow fake Cheque s to be used. Also, the risk of paper clearing will also get rid of. So it can be said that the implementation of the Cheque Truncation System in the entire country will help both banks and consumers more than before.
FEB 08 (WTN) - In this era of internet technology, the Modi government is paying a lot of attention to digital transactions. In fact, the intention of the Modi government is that a maximum number of transactions in the country should be done in a digital way which will not only curb black money, but it will also bring transparency in the transactions. In this context, the method of payment by Cheque in the entire country is going to be digital. Yes, if you do a transaction through a Cheque, then for your information, let you know that now a new Cheque Truncation System is going to be started in the whole country. What is this new Cheque Truncation System? Let us tell you about it in detail.
For your information, let us know that the Central Bank of India, i.e. the Reserve Bank of India, has announced to implement Cheque Truncation System (CTS) across the country by September 2020. That is if you have non-CTS Cheque s, then the bank will not accept them from the month of September. Let you know that under the CTS system, the Cheque is sent electronically in the form of a photograph instead of sending the Cheque to the concerned bank. The CTS process of Cheque clearing was initiated in the National Capital Region on the basis of a pilot project in 2008, after which the RBI took steps to implement it in other cities of the country, under which it was implemented in Chennai in September 2011 and in Mumbai in April 2013.
Let you know that in the Cheque truncation system, there is no need to send Cheque s from one bank to another to clear the Cheque. Under this system, only electronic copies of Cheque s are offered. According to the Reserve Bank, this system reduces the cost of moving Cheque s from one place to another. Also, the time taken to collect the Cheque from this system is also saved. At the same time, it is being claimed that the whole process of Cheque processing with this system will be easier than before. By the way, for your information, let us know that the Cheque truncation system has been adopted in many countries of the world.
Note that under CTS, banks use scanned copy instead of the physical copy of the Cheque for Cheque settlement. Since the entire process goes electronic, the Cheque clearing time in CTS is considerably shorter than before. At the same time, it has been observed that many times the Cheque s are lost during the physical clearing, due to which the Cheque settlement is delayed, but now the Cheque clearing system will not delay the Cheque clear even after the Cheque is lost. By the way, it takes three days to clear the Cheque by the old method, but after the Cheque truncation system, the Cheque is claimed to be cleared within 24 hours.
You may be wondering how to find out if your Cheque book is with CTS? So for your information, let us know that if the CTS-2010 Cheque is not written on the Cheque -in your Cheque book, it means it is a non-CTS Cheque book. Whether you also have an old Cheque book, then immediately change your old Cheque book in the new CTS Cheque book. And if you have an old Cheque book, you can go to the bank and get a new CTS Cheque book from the bank in exchange for the old Cheque book, and for this, the bank will not charge you anything. By the way, most of the banks have already stopped clearing non-CTS Cheque s from January 1, 2020.
According to the Reserve Bank, digital payments in India are growing rapidly, and for this reason, the Digital Payments Index (DPI) will be released soon. It is being said that the DPI will be prepared and published by the Reserve Bank on a regular basis so that the digitization in payments can effectively be detected. It can be said that with this step of the Reserve Bank, the process of clearing the Cheque will be easier and faster than before. At the same time, the use of this system will not allow fake Cheque s to be used. Also, the risk of paper clearing will also get rid of. So it can be said that the implementation of the Cheque Truncation System in the entire country will help both banks and consumers more than before.
