CTS Services
Cheque Truncation System, abbreviated as CTS, is nothing but an electronic verification procedure using image-based processing. This system is followed for clearing cheques in an error-free, fast and hassle-free manner. This means that there will be no physical movement of the cheque but rather an electronic image-based transmission that will reduce the processing time.
Stepwise Process Involved in Clearing Cheques using CTS
- First, an electronic image of the cheque is captured by the presenting bank (collecting bank) through a ‘Capture System’.
- The presenting bank then sends this data in an encrypted format to the ‘Clearing House’, from where it will be sent to the paying bank.
- The cheque-related data is transmitted between the collecting and paying bank through a Clearing House Interface, which is sort of a gateway.
- The next step is ‘Presentation Clearing’, which involves the process of data reading. After which, the data will be sent to the concerned paying bank.
- Once the paying bank gets the all the images and data through the clearing house, the payment is processed.