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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.

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Top 5 Reasons to Choose Investment Banking as a Career!


The investment banking industry is one of the booming industries in the world. Being an investment banker is surely a promising career in the present times. The reason being this profile has a very important role to play in businesses, including but not limited to advising firms on mergers and acquisitions and fundraising activities. 

In other words, an investment banker is a kind of broker who is responsible for facilitating such transactions, along with connecting investors with companies. However, to become one is not an easy path for sure as not only one needs to opt for one of the top investment banking courses but also master the required skills. 

5 Reasons to be an Investment Banker

  1. Financial Modeling & Valuation

With investment banking, you will get an opportunity to gain expertise at building complex, large financial models at your career’s beginning. Since bankers spend a lot of time on the valuation process, they also can be great investors.

  1. Great Pay

Of course, this is something that you will get as a reward after hours of working hard. Undeniably, great pay is something everyone wants but don’t just go with this reason alone as you must have serious interest in this field first. 

  1. Every Day is a Different Day

Most of the time, your present-day will be a lot different than yesterday in terms of work since an investment banker has to take care of a lot of things on his plate. So, if you do not like monotonous tasks, get enrolled in one of the investment banking courses online since this one’s the job for you. 

  1. High Profile Transactions’ Exposure

Until a public announcement is made on the front page of a newspaper, things investment bankers deal with are usually high profile transactions. If you are also interested in the same, it is quite the field for you. 

  1. Surrounded by Talented/Smart Individuals 

You have a lot of opportunities to learn and enhance your skills because you will be in a field where you will be surrounded by a highly talented group of folks. Since you all will be working in a competitive environment, you will often have intelligent conversations to share and learn from. 

Key Skills Required to be an Investment Banker

  • Being Intellectual

This is probably the most essential skill required to be an investment banker, and every of the top investment banking courses in India will lay stress on the same. You need to have a great intellectual mind with a stronghold on analytics, finances, mathematics, and economics. 

  • Being Disciplined

Long hours, hard work, self-discipline, and diligence are some traits one must possess if one wants to reap the benefits of being an investment banker. This holds true for an entry-level analyst to the managing director working at the top level.

  • Being Global 

With the world getting connected more and more, being broad-minded is something which is the need of the hour. It helps understands different businesses, societies, and cultures, and when this knowledge combines with communication, it allows you to express well and lay down your points. 

  • Being Social

If you wish to climb up the success ladder in this field, you must have relationship-building skills, including great interpersonal skills. So, always have a positive attitude and high energy, learn to deal with tough people in difficult situations using your communication and explore every possible opportunity. 

  • Being Innovative

Your investment banking courses with placement might not tell you this, but it is essential to be innovative and creative in this field. In most cases, investment bankers are required to approach situations from a completely different angle and come up with amazingly unique solutions. 

Wrapping Up

To sum up, it is clearly established that a career in investment banking is surely very rewarding. However, one needs to work hard for the same and acquire skills and knowledge that are a must for entering this competitive industry. 

If you are interested in the banking sector and wish to seek quality knowledge and learn essential banking skills, Aspiring Bankers can be an ideal choice for you. Learn more about our different banking courses and certifications by contacting us on +91 7299 0000 62 or through: