Q. Consider the following statements about the Cheque Truncation System (CTS):
1.It is a physical movement of cheques clearing system introduced by the Reserve Bank of India (RBI).
2.At present, the CTS processes cheques with a clearing cycle of up to two working days.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation: Only 2 is correct
Statement 1 is incorrect: Cheque Truncation System (CTS) is an online image-based cheque clearing system introduced by the Reserve Bank of India (RBI). The cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. So, it stops the physical movement of cheques.
Statement 2 is correct: At present, the CTS processes cheques with a clearing cycle of up to two working days. Banks collect and scan cheques before sending them for processing in designated batches, resulting in a T+1 day clearance period in most cases.
Source: TH
