You have heard of CTS, but what is it?

Digital payments in India have seen a rapid growth. Observing how beneficial it has been after accelerating the cheque clearance procedures, cheque truncation system (CTS) will soon be implemented all across the country.

As of now, Cheque truncation system was available only in major clearing houses of the country - the places with stabilised banking software. A couple of years back, there were notices in newspapers requesting customers to get a newer version of their existing cheque books issued under the CTS2010 standards.

In earlier days, cheques deposited by customers were presented to the paying bank by the collecting bank over the counter. However, as the number of cheques involved in trading started growing rapidly, there was a concept developed called the “clearing house”. They were set up in different cities and followed manual procedure to clear the deposits.

 

Brief explanation of Cheque Image Clearing System (CICS) or Cheque Truncation System (CTS)

CTS is a web-based solution, and much like core banking, it can be accessed by the authorised personnel from any machine in the bank’s network. The cheque image is truncated on presenting and consequently helps in effortless movement in the cheque-clearing cycle. Leveraging the advanced imaging technologies, the solution aids in hassle-free customer services and enhanced operational competence for banks; not to forget how it cuts down on the overheads required for the manual clearing.

 

Benefits of installing Cheque Truncation System

·         Helps eliminating time and resources on physical transfer of cheques

·         Reduced plausibility of clearing frauds

·         Lesser probability of misplaced cheques

·         Lowered operational risk or paper clearing peril

·         More advanced and secure option

·         Quicker clearance of cheques

 

Bankmill levies no extra charge for cheque collection drawn on a bank located within the grid.

 

Why should corporates have Cheque Clearing System?

·         Offers accelerated clearing - Upon depositing the cheques, the CTS helps in resulting in faster clearing cycles than it would take in physical copies of cheques

·         Enhanced Cash Flow- Accelerated clearings helps in improved cash flow and working capital

·         Improved Accessibility- forms point-to-point connectivity between the clients and the bank and eventually resulting in improved customer relationship

·         Risk Management - Real-time tracking with integrated return cheque memo creates enhanced accountability and efficiency in transaction

 

Improving the business and customer relationship without spending tons in the establishment and upholding of the institutions is the sole aim. Helping in curtailing resources and creating seamless workflow is possible with the latest banking technologies from Mindmill.