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.
| CTS Cheque | Non-CTS Cheque |
You can see a watermark of the bank on the CTS cheque which is scanned. |
This isn’t a watermark non-CTS cheques. |
There is a white pantograph on CTS cheque. |
There is no pantograph present on a Non-CTS cheque |
Micro-electric lines are used on the CTS cheques. |
In non-CTS cheques, just a simple line is used without any micro-electric. |
The symbol of the rupee is the new and updated one on the CTS cheque. |
While the old symbol of the rupee is used in the non-CTS cheque. |
There is a separate place for signature in the CTS cheque stating “please sign here’ on the CTS cheque. |
No such thing is written on the non-CTS cheque. |
CTS-2010 is printed on the left corner of the cheque on the CTS cheque. |
No such thing is printed on the non-CTS cheque. |
I hope this helps you understand the difference as well as what is CTS and Non CTS cheque.
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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.
Check out home loans on NoBroker at minimal interest rates, here.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.
Read More: What is CTS Cheque: CTS Clearing Meaning? What is Non CTS Cheque Meaning? How to Identify CTS Cheque?Your Feedback Matters! How was this Answer?
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Authors Of The Question
What is the Difference Between CTS and Non CTS Cheque?
Niharika
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2 Answers
2 Year
2022-11-21T10:46:59+00:00 2023-08-31T19:28:36+00:00Comment
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