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Banks to Implement Image based CTS System—By RBI

Published on March 17, 2021
Current Context: The Reserve Bank of India (RBI) has asked all banks in the country to implement an image-based Cheque Truncation System (CTS) in their all branches.
Banks to Implement Image based CTS System—By RBI
  • The RBI has also framed the deadline for the same i.e. till 30th Sep 2021.
  • The image-based CTS will help in the faster settlement of cheques thus giving a better customer experience.
  • Until around 18,000 bank branches are not in this process of setting up image-based CTS and so the RBI has proposed to all such bank branches to complete the mechanism process for the same.
  • The CTS is in use since 2010 and presently covers around 1,50,000 branches. All the erstwhile 1,219 non-CTS clearing houses (ECCS centres) have been migrated to CTS effective September 2020.
  • On 5th Feb 2021, RBI announced Pan-India coverage of CTS by framing all bank branches under an image-based CTS mechanism.
  • And now the banks are asked to inform RBI, the roadmap to achieve Pan-India coverage of CTS and submit a report by 30th April 2021.
  • The image based CTS will bring operational efficiency in the paper-based clearing of cheques thus making the process of collection and settlement of cheques faster.
  • Static Part: 
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das

Question: 

Q.1 The RBI has asked all the bank branches in India to implement image based Cheque Truncation System by which date?
a. 31st March 2021
b. 15th April 2021
c. 30th Sep 2021
d. 31st Dec 2021
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