"Cheque Truncation System." It is an initiative by the Reserve Bank of India (RBI) to make cheque clearing more efficient and reduce the time taken in cheque processing.

The main objective of CTS is to eliminate the physical movement of cheques for clearing and streamline the cheque clearing process by using electronic images.

Eliminates the need for physical movement of cheques, thereby reducing the time taken in clearing and settlement from days to hours.

Risks associated with physical handling of cheques, such as loss, theft or fraud, are reduced.

Provides faster credit of funds to customers, as the clearing process is expedited.