Full Form of CTS : Cheque Truncation System

What is the full form of CTS

No:1. CTS stands for Cheque Truncation System.
No:2. It is a project of Reserve Bank of India which was launched for faster clearance of cheques.
No:3. It does not involve physical transfer of cheques from one bank to another bank.
No:4. CTS is basically an online image based cheque clearing system which uses cheque image to clear the cheque.
No:5. An electronic image of the cheque along with MICR number is sent to the drawee bank from the drawer bank.

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Brief History

No:1. The CTS was first launched in National Capital Region, New Delhi by Reserve Bank of India in February 2008.
No:2. In September 2011, it was launched in Chennai.
No:3. In 2013, RBI decided from 1 August 2013 only CTS-2010 cheques would be accepted by the banks for clearance.
No:4. Later, in July 2013, this deadline was extended to 31 December 2013.

Benefits of CTS

No:1. It saves time, money and efforts involved in the physical movement of cheques.
No:2. The cheques clear faster which results in better customer service.
No:3. It improves the operational efficiency of banking system.
No:4. It reduces the chances of fraud related to clearing of cheques.
No:5. No fear of losing cheques in transit.
No:6. No geographical restrictions.

Another abbreviation of CTS

No:1. CTS stands for Clear to Send.
No:2. It is a flow control signal or mechanism in RS-232 standard.
No:3. It indicates that a line or device is ready for data transmission e.g. ready to move.
No:4. CTS signal is sent in response to RTS (Request of Send) flow control signal.
No:5. The RTS signal is sent by the sending device to tell the receiving end to get ready to receive or set its CTS line when it is ready.
No:6. When the receiving end is ready to receive, it sends the CTS signal to tell the other end to send the data.
No:7. Thus, CTS and RTS allow the receiver and the transmitter to alert each other before initiating the data transmission.

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