RBI okays continuous CTS clearing of cheques
- For expeditious clearance of cheques, the RBI has announced measure on Continuous Clearing of Cheques under Cheque Truncation System (CTS).
Highlights:
- Once implemented cheques would be cleared within hours of submission instead of two days taken currently.
- To improve the efficiency of cheque clearing and reduce settlement risk for participants, and to enhance customer experience, it is proposed to transition CTS from the current approach of batch processing to continuous clearing with ‘on-realisation-settlement’
- Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours.
- The clearing cycle will reduce from the present T+1 days to a few hours.
- Detailed guidelines in this regard shall be issued shortly.
Prelims Takeaway
- CTS