Some important points relating to CTS-2010

1. The Reserve Bank has implemented CTS in the National Capital Region (NCR), New Delhi, Chennai and Mumbai with effect from February 1, 2008, September 24, 2011 and April 27, 2013 respectively.

2. The cheque images can be Black & White, Gray Scale or Coloured, 

 Black & White images are light in terms of image-size, but do not reveal all the subtle features that are there in the cheques,

 Coloured images are preferable, but they increase storage and network bandwidth requirements,

 Gray Scale images are mid-way and most preferable,

 CTS in India use a combination of Gray Scale and Black & White images.

 There are three images of each cheques that need to be taken - front Gray Scale, front Black & White and back Black & White.

3. Customers should use image-friendly coloured inks while writing cheques and avoid any alterations / corrections thereon.

4. Images that do not meet the specifications are rejected.

5. The security, integrity, non-repudiation and authenticity of the data and image transmitted from the paying bank to the payee bank are ensured using the Public Key Infrastructure (PKI).

6. The PKI standards used are in accordance with the appropriate Indian acts and notifications of Controller of Certifying Authority (CCA).

7. CTS is compliant to the requirements of the Information Technology Act, 2000.

8. It has been made mandatory for the presenting bank to sign the images and data from the point of origin itself.

9. Under CTS the physical cheques are retained at the presenting bank level and do not move to the paying banks.

10. A customer can be provided with the images of cheques duly authenticated, is such a need arises.

11. Customer can also demand to see the physical cheque – for that it would need to be sourced from the presenting bank, for which a request should be made to his/her bank.

12. According to CTS-2010, the presenting banks which truncate the cheques will have topreserve the physical cheque for a period of 10 years.

That was one helluva CTS related piece!

I decided on this topic because many friends of mine, who faced interviews in the last 1 year, have been asked about it – either the basics or the detailed process!

People who were from commerce background could answer the basics, but faltered with the process and details; and the ones not from commerce were left blinking their eyes at the interviewers!