- What is CTS clearing?
- How can you tell the difference between a CTS and non CTS Cheque?
- What is an inward Cheque?
- What is the difference between clearing and settlement?
- What is difference between inward and outward clearing?
- What type of Cheque Cannot be presented in CTS clearing?
- How do I check my CTS Cheque?
- What does Outward Clearing mean?
- What does Clearing mean banking?
What is CTS clearing?
Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques.
Instead, an electronic image of the cheque will be sent along with relevant information..
How can you tell the difference between a CTS and non CTS Cheque?
If the cheque book is not with CTS-2010 cheque leafs, they are referred to as non-CTS cheque books. Cheque Truncation System basically helps in faster clearance of the cheques in the banking records. The time taken in clearance is less and the process is even cost-effective.
What is an inward Cheque?
Inward cheque and Inward return: Cheque coming into the bank through the clearing process is Inward Cheque for the bank. Inward return means that a person issued a cheque which got returned due to insufficient funds in his account.
What is the difference between clearing and settlement?
Settlement is the actual exchange of money, or some other value, for the securities. Clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities. … Central clearing uses a third-party — usually a clearinghouse — to clear trades.
What is difference between inward and outward clearing?
Outward clearing means the cheques sent for collection. In other words, inward clearing is for our branch and outward clearing is for other banks or branches. When we receive inward clearing we have to debit our customer account and when we receive outward clearing we have to send it to relevant bank for payment.
What type of Cheque Cannot be presented in CTS clearing?
This would help banks in identifying and controlling fraudulent alterations. This prohibition is applicable to cheques cleared under the image based Cheque Truncation System (CTS) only. It is not applicable to cheques cleared under physical exchange of instruments.
How do I check my CTS Cheque?
“CTS 2010” is printed on the left hand side of Cheque leaf near the perforation. Void Pantograph (a wave like design) is embossed on left hand side of Cheque leaf.
What does Outward Clearing mean?
Outward Cheques Clearing Solutions Outgoing cheque clearing, or called outward cheques, is the first part of interbank cheque clearing process. Before the physical cheques are delivered to the clearing house, the cheques’ data needed to be captured to be electronically transmitted to the clearing house.
What does Clearing mean banking?
Clearing is the procedure by which financial trades settle – that is, the correct and timely transfer of funds to the seller and securities to the buyer.