Indian Economy & Banking
The Reserve Bank of India is shifting the Cheque Truncation System from batch processing to continuous clearing with settlement on realisation, to be rolled out in two phases.
CTS is an image-based cheque clearing system where cheque images and MICR data are transmitted electronically, eliminating physical cheque movement. The move to continuous clearing will allow faster access to funds, reduce settlement risks, and align cheque processing with the efficiency of digital payment systems.
This reform balances modernisation with inclusivity, ensuring that cheque users—especially in business and rural sectors—benefit from quicker, safer, and more reliable banking operations.
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