What is the Difference Between CTS and Non CTS Cheque?

If you're looking for the differences between CTS and non CTS cheques then you should first know what is CTS and Non CTS cheque. Without taking much of your time I will explain to you what these terms mean.

The full form of CTS is Cheque Truncation System. It is the process of electronically clearing cheques instead of physically processing the cheques that are presented in a bank branch. It is a quicker way of clearing cheques.

The full form of non CTS cheques is non-Cheque Truncation System. It is also a quicker way of clearing cheques. However this process is a little more time taken and also reasonably priced.

Now let me tell you the CTS and Non CTS cheque difference.

CTS cheque vs Non CTS cheque

The major differences between CTS and Non-CTS cheques are based on magnetic ink usage.

I hope this helps you understand the difference as well as what is CTS and Non CTS cheque.

It might get exhausting when you physically present a cheque to a bank for processing. That is why financial institutions introduced the Cheque Truncation System (CTS). Cheques are processed electronically through the Cheque Truncation System (CTS), as opposed to physically processing them by having the bank take them to the branch of the paying bank. The Reserve Bank of India (RBI) took this action to speed up the clearance of checks. But there was a time when Non CTS cheques were being used. I will tell you the

difference between CTS and Non CTS cheque here in my answer. But before that let me tell you about both the types of cheques to you.

CTS Cheque: Instead of having the presenting bank process the physical check as it travels to the branch of the paying bank, the Cheque Truncation System (CTS) is a method for clearing checks electronically. 

Non-CTS Cheque: A non-CTS chequebook is one that has non-CTS cheque leaves. There is no watermark, IFSC, or branch name on these kinds of checks. Furthermore, there is no magnetic ink on these checks.

A non-CTS cheque holder will not be permitted to transfer money, per RBI regulations, due to a greater risk of forging. Beginning on January 1, 2019, most banks ceased clearing checks from non-CTs. Therefore, if you still have a non-CTS chequebook, ask your banker to replace it. The transaction is faster and more reliable with CTS 2010 than with previous versions. Additionally, the current CTS system's security and effectiveness have been improved by RBI, which is positive.

Now you know the difference between CTS and Non CTS cheque.