CTS : Cheque Truncation System According to a report released on March 18, 2013, the Reserve Bank of India has asked banks to stop collecting fresh post-dated cheques or equated monthly instalment cheques in any centre where electronic clearing service (ECS) facility is available. The directions are part of the central bank’s latest directive on cheque truncation system which extends the validity of cheques issued in the old format until July 31, 2013. Cheque Truncation System (CTS) refers to RBI’s plan to discontinue routing paper cheques all the way from the drawee’s bank branch to the issuers branch. RBI had originally set March 31, 2013, as the deadline until which cheques issued in the old format would be valid.
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