Introduction to CTS
A cheque truncation system promotes the processing of a cheque electronically through the Magnetic Ink Character Reader (MICR) data and a scanned image. The physical cheque is not required.
Understanding Cheque Truncation System (CTS)
Truncation means making something shorter. CTS has reduced the time taken in the payment processing of a cheque.
Advantages Of Cheque Truncation System (CTS)
The CTS benefits banks. Furthermore, it has changed the cheque clearance method in a way to save the time and effort of the employees in the bank.
Customer Service - It enhances the customer experience.
Operational Benefit - The process is faster and more advanced.
Commercial Benefit - Low expenditure of resources on clerical work and stationery.
Provides Fraud Prevention Mechanism - Secure method, preventing fraud.
Process Of Cheque Truncation System (CTS)
- Collection of Cheques
- Capturing of Data
- Security of Data
- Clearing House Interface
- Presentation Clearing
- Processing of Payment
- Completion of Cycle
