The Live Ahmedabad
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured

The Live Ahmedabad

  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
Ahmedabad City

Clearing time for cheques to be cut from 2 days to a few hours: RBI chief

by TLAteam August 10, 2024August 10, 2024
written by TLAteam August 10, 2024August 10, 2024
Clearing time for cheques to be cut from 2 days to a few hours: RBI chief

The RBI aims to reduce the clearing time required for bank cheques to a few hours as part of a major step to facilitate the ease of doing business in the country, RBI Governor Shaktikanta Das said on Aug 8.

Business News

At present, cheque clearing through the Cheque Truncation System (CTS) operates in a batch processing mode and has a clearing cycle of up to two working days. It is proposed to reduce the clearing cycle by introducing continuous clearing with ‘on-realisation-settlement’ in CTS, Das explained.

“This means that cheques will be cleared within a few hours on the day of presentation. This will speed up cheque payments and benefit both the payer and the payee,” the RBI chief added.

Cheque truncation entails the process of replacing the flow of the physical cheque issued by a drawer from the presenting bank to the paying bank branch. Instead of the physical cheque being sent, an electronic image of the cheque is transmitted to the paying branch through the clearing house, which conveys the relevant information such as the MICR band, date of presentation and the presenting bank.

Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and expedites cheque processing.

CTS enables quick and cheap realisation of funds to customers as compared to traditional methods that entail physical movement. Under grid-based CTS clearing, all cheques drawn on bank branches falling within the jurisdiction of the grid are treated and cleared as local cheques. No outstation cheque collection charges are to be levied if the collecting bank and the paying bank are located within the jurisdiction of the same CTS grid even though they are located in different cities.

0 comment
previous post
Gujarat’s ‘Har Ghar Tiranga’ Campaign: Ahmedabad set for Tiranga Yatra with 1 lakh+ attendees
next post
Food Court to come up at Vastrapur lake garden in Ahmedabad

You may also like

Gujarat Schools to Set Up ‘Sugar Boards’ Amid...

July 5, 2025

AMC Proposes Hike in Stray Dog Sterilisation Cost...

July 5, 2025

Ahmedabad Weekend Guide: Music, Theatre, Film Screenings, and...

July 5, 2025

CBI Raids PCI President’s House in Ahmedabad Over...

July 5, 2025

Gujarat College Girl Refused Flat for Being Unmarried,...

July 5, 2025

Ahmedabad Has ₹1,000 Crore Road Budget but No...

July 5, 2025

Drugs, Saffron, iPhones Worth ₹7 Crore Seized at...

July 5, 2025

Gujarat to Digitise All 224 APMCs to Boost...

July 5, 2025

Vadodara schools targeted again: Two bomb threats on...

July 5, 2025

AMC Commissioner orders officials to repair 3,000 potholes...

July 3, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Business News

Recent Posts

  • Toll Fee Reduced on NH Flyovers, Tunnels by Up to 50%

    July 5, 2025
  • Gujarat Schools to Set Up ‘Sugar Boards’ Amid Rising Diabetes Cases in Children

    July 5, 2025
  • AMC Proposes Hike in Stray Dog Sterilisation Cost to ₹1,650 per Dog

    July 5, 2025
  • A Salute to Student Leadership: KFS Ghatlodia Investiture Ceremony Shines Bright

    July 5, 2025
  • H&H Aluminium Pvt Ltd inaugurates India’s Largest Solar Panel Frame Plant in Rajkot, Gujarat

    July 5, 2025
August 2024
MTWTFSS
 1234
567891011
12131415161718
19202122232425
262728293031 
« Jul Sep »
The Live Ahmedabad
Footer Logo
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms of use
  • Advertise with Us
  • Work With Us
  • Contact Us

© 2021 - The Live Ahmedabad. All Rights Reserved.