CTS – Cheque Truncation System
Cheque Truncation System will stop the physical flow of cheque between one Bank to another. Instead of physically transferring cheque from one bank to another, an image of the cheque along with its MICR code will be passed on to the drawee bank from the drawer bank.
This will enable almost same day clearing of funds instead of present scenario which takes 2-5 days. It also eliminates the chances of cheque lost while transition.
CTS – Clear to Send
Clear to Send is a Control Signal in RS-232 standard.
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