This would eliminate the need to move the physical instruments across branches, except in exceptional circumstances, resulting in an effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.
[2] Based on the experience gained and the benefits that would accrue to the customers and banks, it was decided to bring CTS into operation across the country.
[4] Banks derive multiple benefits through the implementation of CTS, like a faster clearing cycle meaning technically possible realization of proceeds of a cheque within the same day.
Operational efficiency provides a direct boost to bottom lines of banks as clearing of local cheques is a high cost low revenue activity.
Real-time tracking and visibility of the cheques, less frauds with secured transfer of images to the RBI are other benefits that banks derive from this solution.