All Banks to have Cheque Truncation System by September 2021: RBI Governor

The Reserve Bank today said that the Cheque Truncation System (CTS), which is currently operational at the major clearinghouses of the country, will be made operational across all branches of the country by September 2021.

Addressing the first Monetary Policy meeting after the Union Budget 2021, RBI Governor Shaktikanta Das said that around 18,000 banks are still not under the Cheque Truncation System.

The Central Bank decided to implement ‘Positive Pay’ system to enhance the safety of cheque-based transactions. This new rule came into effect from 1 January 2021. Under the 'Positive pay system' for cheque re-confirmation of key details may be needed for payments beyond ₹50,000. The announcement of the same was made by RBI Governor Shaktikanta Das on 6 August 2020.

What is Cheque Truncation System (CTS)?

Under this process, the issuer of the cheque submits electronically details related to the cheque presented for clearings, such as the cheque number, cheque date, payee name, account number, amount, and other details against a list of cheques previously authorized and issued by the issuer.

The Reserve Bank of India's (RBI) Monetary Policy Committee has voted unanimously to keep the policy repo rate unchanged at 4 per cent, said RBI Governor Shaktikanta Das.

"The Monetary Policy Committee met on 3rd, 4th and 5th February and deliberated on current and evolving macroeconomic and financial developments both domestic and global. The MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent," said Das.

"It also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and into the next year to revive growth on a durable basis and mitigate the impact of COVID-19 while ensuring that inflation remains within the target going forward," he added.

Source Link