Here is a brief note on the ‘CTS Full Form‘. This is very important for banking awareness. Here we discussed the full form of CTS, its function, and its benefits.
CTS full form in Banking
• CTS stands for Cheque Truncation System.
• The word ‘Truncation‘ means shortening something by cutting it off.
• In the Cheque truncation system, bank Cheque clearing time is reduced by using a photocopy of the Cheque instead of using a physical Cheque.
• According to the Reserve Bank of India, truncation is the process of stopping the flow of physical checks from one bank to another.
Brief History of CTS
• The Check Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), launched in 2010.
• The Reserve Bank of India implemented the first CTS on 1 February 2008 in the National Capital Region, New Delhi.
• On 24 September 2011, it was launched in Chennai, Tamil Nadu.
• From 1 August 2013, RBI decided to roll out CTS across the country and issue guidelines to accept only CTS-2010 compliant checks for clearing.
• On 17 July 2013 the RBI extended the deadline from 1 August 2013 to 31 December 2013.
How CTS works
• CTS is an image based Cheque clearing system In which an electronic image of the cheque is transmitted to the paying branch through the clearing house.
• A scanned image of the check is used instead of using a physical check because it is easier to send e-checks between banks and clearing houses.
MICR stands for- Magnetic ink character recognition
• An electronic copy of the check along with relevant information like MICR number, date of presentation, and presenting bank is sent from the drawer bank to the drawee bank.
Benefits of Cheque Truncation System
• This effectively eliminates the cost associated with the movement of physical checks.
• This reduces the time required for their collection and brings elegance to the entire check processing activity.
• Checks clear faster resulting in better customer service.
• It improves the operational productivity of the banking system.
• It reduces the chances of fraud related to the clearing of cheques.
• No fear of losing cheques in transit.
• No geographical restrictions.
Other Full form of CTS
CTS full form in school
• CTS in academic terms stands for Career and Technology Studies (CTS).
• Career and Technology Studies (CTS) is designed for high school students to develop skills that can be applied in their daily lives and improve their employability after high school.
CTS full form in Medical
• In medical science, CTS stands for Carpal Tunnel Syndrome (CTS).
• This is a common problem that affects hand function, caused by compression of the median nerve at the wrist.
CTS full form in ITI
• In ITI, the CTS means a Craftsmen Training Scheme. It was started in 1950 by the Government of India. It provides industrial training to ensure a continuous flow of skilled workers in various trades.
CTS full form in Computer
• CTS stands for Common Type System (CTS) in computer programming and networking.
Frequently Asked Questions (FAQ)
Answer: Cheque Truncation System
Answer: Craftsmen Training Scheme
Answer: Carpal Tunnel Syndrome
Answer: Common Type System