New Delhi: In a transfer that can lead to faster settlement of cheques leading to higher customer support, the Reserve Bank of India has requested banks to implement the image-based Cheque Truncation System (CTS) in all branches by September 30.
” To leverage the availability of CTS and provide uniform customer experience irrespective of location of her/his bank branch, it has been decided to extend CTS across all bank branches in the country. To facilitate this, banks shall have to ensure that all their branches participate in image-based CTS under respective grids by September 30, 2021. They are free to adopt a model of their choice, like deploying suitable infrastructure in every branch or following a hub & spoke model, etc. and concerned banks shall coordinate with the respective Regional Offices of RBI to operationalise this,” an RBI assertion stated.
The CTS is in use since 2010 and presently covers round 1,50,000 branches. All the erstwhile 1219 non-CTS clearing homes (ECCS centres) have been migrated to CTS efficient September 2020. It is, nonetheless, seen that there are branches of banks which are outdoors any formal clearing association and their clients face hardships because of longer time taken and price concerned in assortment of cheques offered by them.
Banks have additionally been requested to tell the RBI the roadmap to realize pan-India protection of CTS and submit a standing report earlier than April 30, 2021.
#mute
“Banks are advised to inform us (helpdpss@rbi.org.in) the roadmap to achieve pan-India coverage of CTS and submit a status report before April 30, 2021,” RBI stated.
