Cheque Truncation System (CTS)

A cheque Truncation System (CTS) is a cheque clearing system undertaken by Reserve Bank of India for faster clearing of cheques. It involves sending an electronic image of the cheque together with its Magnetic Ink Character Recognition (MICR) data, and other relevant fields like date of presentation, presenting bank’s name, etc.


  • As the cheques would be cleared electronically, there is no fear of loss of cheque in transit.
  • Faster clearing leading to faster credit of funds to your account.
  • CTS compliant cheques being more secure, there are lesser chances of fraud.
  • As the system progresses and geographical restrictions are overcome, even multi-city cheques could be cleared on the same day