Benefits of CTS

(i) CTS speeds up the process of collection of cheques,

(ii) Reduces the scope for clearing-related frauds or loss of instruments in transit,

(iii) Lowers the cost of collection of cheques,

(iv) Removes reconciliation-related and logistics-related problems,

(v) Reduces the time of clearing cycle – that is faster processing of cheques and payment in favour of the customer,

(vi) Reduces scope for frauds inherent in paper instruments,

Thus, as you can see CTS increases efficiency of the entire system.

What is CTS -2010?

CTS-2010 is a standard benchmark recommended by RBI for the standardisation of:

(i) cheque forms (leaves) in terms of size,

(ii) MICR band,

(iii) quality of paper, having protection against alteration, should be sensitive to acid/alkali/bleach etc. and should not glow under UV light – CTS -2010 paper is UVdull!

(iv) watermark, all cheques to carry a standardized watermark, ‘CTS INDIA’ – should be oval and 2.6 to 3 cms in diameter,

(v) mandating colour schemes in pastels to ensure clarity of image etc.,

Thus, CTS-2010, standardizes the cheque to conform to certain features for identification and security purposes.

All banks providing cheque facility to their customers have been advised to issue only 'CTS-2010' standard cheques.

Cheques not complying with CTS-2010 standards will be cleared at less frequent intervals i.e. twice a week up to October 31, 2014 and weekly once from November 1, 2014 onwards.