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Understand What CTS Is


Cheque Truncation System (CTS) is a method of clearing checks electronically rather than physically processing the cheque as it travels to the paying bank branch. The Reserve Bank of India (RBI) has taken this move to expedite cheque clearing. CTS came to action in New Delhi, Chennai, and Mumbai on February 1, 2008, September 24, 2011, and April 27, 2013, respectively. The old MICR-based check processing has been halted across the country following the transfer of the entire cheque volume from the MICR system to the CTS. 


Cheques collection:

Cheques are collected from customers and delivered to their corresponding service branch at a predetermined time.

Data Collection:

The service branch captures the data (such as MICR code, check number, amount, etc.) and captures pictures of a cheque using their Capture System (which includes a scanner, core banking or CTS application) and fulfills the specifications and standards for data and image. After the required information of the check is safely sent to the Clearing House Interface (CHI), the actual clearing settlement occurs from CHI to CH.

Data Security:

End-to-end Public Key Infrastructure (PKI) has been deployed in CTS to assure data security, safety, and non-repudiation. However, as part of the requirement, the collecting bank (presented bank) delivers the signed and encrypted data and collected pictures to the central processing facility (Clearing House) for transmission to the paying bank (destination or drawee bank).

CHI and Presentation Clearing:

For the purpose of participation, the presenting and drawee banks are given an interface/gateway known as the CHI, which allows them to connect and communicate data and pictures to the Clearing House securely and safely (CH). The Clearing House analyzes the data, calculates the settlement amount and sends the pictures and other data to the drawee banks. This is known as presentation clearing.

The payment process and Completion of the cycle:

The drawee banks receive the pictures and data through their CHIs from the Clearing House for payment processing. The drawee Cheque Truncation System also creates the return file for any unpaid instruments. The return file/data submitted by the drawee banks are processed by the Clearing House in the return clearing session in the same way as presentation clearing, and return data is delivered to the presenting banks for processing. Once the presentation clearing and associated return clearing sessions are properly handled, the clearing cycle is considered complete.


The benefits to the customers of the bank can be summarized as follows:

  1. The clearing cycle is now shorter.
  2. Process of verification and reconciliation that is superior
  3. There are no geographical limitations to jurisdiction.
  4. Banks and consumers both benefit from operational efficiency.
  5. Reduced operational risk, as well as the hazards associated with paper clearance
  6. There are no collection fees for cheques drawn on a bank within the grid.

Banks and customers should utilize “CTS 2010” cheques, which are more image-friendly and enhanced security measures. Customers can ask/demand that their banks provide them with “CTS 2010” compliant cheque formats. They should select image-friendly coloured inks when writing cheques and prevent revisions or edits. In the case of any changes or corrections, a new cheque leaf should be used because the check will be cleared using an image-based clearing method.

Banks should use caution when affixing stamps to cheque forms so they do not interfere with important information such as the date, payee’s name, amount, and signature. The usage of rubber stamps, for example, should not overpower the clear presentation of these key picture components. All vital characteristics of a cheque must be recorded in an image during the scanning process, and banks and clients must take proper precautions in this respect.


A cheque truncation system encourages the electronic processing of a check using Magnetic Ink Character Reader (MICR) data and a scanned picture. There is no need for a physical check. You can get in-depth information and understanding about CTS in our online banking course. Aspiring Banker’s Postgraduate Certificate in Retail Banking course is all you need to get ready for banking sector.


Upcoming Trends in Banking Sector You Must Know

The banking and financial services sector is focusing on innovation to prepare for a future where technology will be increasingly important. As many financial institutions deal with economic uncertainty, a restrictive regulatory environment, fierce competition, technology-driven disruptions, and updating legacy processes to meet changing customer requirements, improving Return on Equity (RoE) has received a lot of industry. However, as more and more financial institutions reinvest savings from efficiency measures and strategic cost programs into investments, notably in technology, banks are placing a new emphasis on innovation.

The upcoming trends can be discussed in brief as follows:

Digital Transformation:

To improve operational efficiencies and provide improved client experiences, the sector focuses persistently and aggressively on digitalization and using new and emerging technologies. Banks invest in self-service digital channels as clients increasingly choose mobile and online banking. With the computing power of smartphones built into wearable technology, banks are increasingly able to provide consumers with customized services.

The emergence of E- Cheques:

This US-developed technology will take the place of traditional paper checks in India. A negotiable instruments act has been added to the amendment to incorporate  E-cheque and make it mandatory.

Development of Cognitive side:

The BFS sector is already experimenting with various applications of AI in their daily work. Banks are seeing the dual benefits of cost optimization and operational improvement, from deploying AI to power chatbots and offering round-the-clock, agile customer support to employing the technology for important tasks like anti-fraud and regulatory compliance.

Electronic Clearance Service ( ECS):

Bulk electronic payments and receipts are generated using a system called ECS. The payments must be repeated and of a comparable kind, even if they are less in quantity. Therefore, this capability is especially useful for government organizations and businesses that send or receive substantial amounts of money in bulk.

FinTech Companies:

Many banks are attempting to take advantage of the possibilities offered by digital, either by utilizing the technology internally or by collaborating with FinTech firms. At first, these businesses were viewed as rivals exploiting the gap left by the BFS sector’s inability to keep up with technology advancements. However, collaborations between banks and fintech companies are becoming more common. The latter offers marketing, management, loan servicing, and other services to enable banks to provide tech-enabled banking products. Other benefits of cooperation between banks and fintech companies are also coming to light for banks, such as access to resources and clients.   As a result, these collaborations are starting to transform the financial services industry.


The idea of Buy Now Pay Later [BNPL] has completely changed the Indian banking industry with the growth of fintech firms. Banks know how crucial it is to use this idea well to enhance client satisfaction and foster a good attitude. The practice of banks providing their customers with the required credit in interest-free or spaced-out interest-bearing payments is currently regarded as the new type of consumer lending.


Why Private Banks are Ideal for your Banking Career?

Introduction to Private Sector Banks:

The banks in the private sector are those whose private shareholders, as opposed to the government, possess a more significant portion of the stock or interest. Private sector banks hold 18.2% of the assets in the Indian banking system. Financial authorities in India divide the private sector banks into two categories, old and new. The free influx of new cutting-edge technology and foreign direct investment (FDI) brought about by India’s economic openness has dramatically expanded the significance of the private sector in the country’s economy. Due to the shift in the economics of the country, the private banking sector is growing astronomically. The opportunities and salaries are at par with the public sector banks. Unlike ruthlessly competitive exams in public sector banks like SBI, PNB, RBI, etc., private banks offer less resistance to employing young talents.

How are private banks ideal for your Banking Career?

1. No Entrance Exam:

Graduates do not need to prepare for a cut-throat competition exam yearly. Private banks are open to all graduates who are teachable. You can start your career with a few months of preparation and clear the basic test and interviews.

2. Fast Career Growth:

The pace of life in private is relatively faster. Every month comes with different opportunities to learn from and helps in growing. New challenges push the employees to level up.

3. Promotion:

The promotion process in private banks is based on merit rather than seniority. The fresher employee can rise levels faster than a senior who has stopped levelling up. It gives employees a sense of purpose and hard work, which pays off.

 4. Salary:

Salaries in Private Banks are now at par with the Public sector banks. Not only that, but the hike in salary is also more. It all depends on the results that you produce.

5. Posting:

The private banks tend to post the employees near their hometowns. It is a subjective advantage, but some prefer to live with their family. It is not sure if your branch office will be near your residence, but it is likely to happen.

6. Foreign Trips:

 If you qualify, the banks send their best employee on foreign trips for international banking needs. The banking sector is expanding globally now.

7. Hi Tech Environment:

The most significant visible difference would be the working environment. One can quickly feel the peaceful environment the moment he sets his foot on the premises of a private bank.

Grab the Opportunity to make a Successful Career:

Aspiring Bankers has designed all its courses to help students and professionals learn in-demand skills. Every section of the banking industry has been deeply analyzed, and important topics have been handpicked to offer the most industry-integrated banking courses. Visit the website to explore all the courses available and start your banking career. Here are the major career options in banking:

Bank Teller – Handles customer cash and deals with routine customer service at a branch (also known as a cashier).

Financial Clerk – Manages accounts payable and receivable regularly and ensures the smooth running of financial operations.

Accountant – Performs account analysis, auditing, or financial statement analysis.

Financial Advisor – Provides expertise for clients’ decisions around money matters, personal finances and investments.

Bank HR Manager – Manages recruitment, selection, and training, evaluates the performance of the staff, maintains the database records of the employees.

 Bank Marketing Manager – Develops various marketing strategies and plans to boost sales and profits.

Financial Manager – Create financial reports, direct investment activities, and develop plans for the long-term   financial goals of their organization.

Loan Officer – Evaluates credit worthiness and assists borrowers in the application process.

Investment Banker – Raises money for expansion and improvement, prepares a bond offering, negotiates a merger.

Financial Risk Manager – Identifies threats to assets, earning capacity, or the success of an organization.

Banking courses that guarantee a bank job:

Numerous online banking courses cover the essential modules that can help you get a bank job. These courses are not too expensive to burn a hole in your pocket and provide valuable content. Here are some of the top trending banking courses:

Aspiring Bankers

The modules are designed after profoundly analyzing the banking trends and in-demand skills. The self-paced course comes with 1 year of accessibility and can be completed in 3 months. Different modules like Banking System in India, Functions of Banks, Banking Sales & Service, Digital Banking, Risk Management and Professional Excellence are covered. Aspiring Bankers is the only platform that provides online banking courses with 100% placement assistance.

 PGDM Banking and Finance (NIBM)

 Established by the Reserve Bank of India and backed by the Government of India, the National Institute of Bank Management (NIBM) offers prestigious courses in Banking, Economics & Finance. Post Graduate Diploma in Management (Banking & Financial Services) is its flagship program to produce quality professionals in the Indian banking sector.

 NSE PGP in Investment Banking and Capital Markets

It is s 10 months full-time/ part-time Post-Graduate Program in Investment Banking and Capital Markets (PGP IB & CM) course by the NSE Academy, designed to sculpt students into hardcore finance professionals armed with expertise in Investment Banking and Capital Markets. 

BSE Banking and Finance

The Post Graduate Program in Banking & Finance (PGPBF) offered by the BSE Institute includes a comprehensive knowledge of banking operations, including FOREX markets, international trade and finance, bank credit, legal environment of banking and IT systems in banking.