All Bank Branches To Be Covered Under Cheque Truncation System By September, Says RBI

In a letter written to heads of the bank, the Chief General Manager (CGM) of the Reserve Bank of India, RBI, has asked them to implement image-based cheque truncation system (CTS) across all bank branches by September.

This comes in accordance with the 'Statement on Development and Regulatory policy' issued by RBI last month.

Currently, 1,50,000 branches of all banks have implemented the CTS system since its inception in 2010.

However, it has been observed by the RBI that customers of non-CTS branches have to face delays and problems due to the absence of a formal clearance arrangement.

To address this, RBI has asked the banks to extend/ implement CTS system in all their branches by 30 September.

The letter dated 15 March has been addressed to all the Scheduled Commercial Banks (SCBs), including regional rural banks, Urban Co-operative Banks (UCBs), State Co-operative Banks(SCBs), District Central Co-operative Banks, Local Area Banks, Payment Banks, Small Finance Banks and National Payments Corporation of India (NPCI).