Now it doesn't take much time for the check to be cleared, RBI's big decision, know

New delhi date. 09 February 2021, Tuesday

The RBI has decided to change the rules of check clearance. The RBI has decided to expand the scope of the Czech truncation system (CTS). Which will affect 18 thousand bank branches. It is learned that the new rule will come into force from September this year.

The RBI has decided to update all the remaining 18,000 branches to make the payment and settlement system neat and fast. Any branch centralized clearing system that is not under the Czech truncation system will be brought under CTS by September. CTS has been used since 2010 and already has about 1.5 million bank branches.

What is CTS?

CTS i.e. check truncation system is a process of clearing a check. In which the declared check does not have to go from one place to another. But the check that goes to the bank. From there the check is sent to the issuing branch. This causes the check to take longer to clear. Since 2010, checks have been cleared in India under CTS with about 1.5 million branches across the country. Now the rest of the branches will also be connected under this system soon.