What changed
RBI extended CTS to all bank branches nationwide, requiring every branch to participate in image-based clearing under respective grids by September 30, 2021. Previously, CTS covered about 1,50,000 branches, but some branches remained outside formal clearing, causing delays and higher costs for customers.
What it means for you
Banks must now ensure all branches, including those in remote areas, are CTS-enabled, eliminating the need for physical cheque movement. This will speed up cheque clearing, reduce costs for customers, and standardize the experience across India. Banks can choose their deployment model, such as hub-and-spoke, but must coordinate with RBI regional offices.
What you must do
- Ensure all your bank branches are CTS-enabled under respective grids by September 30, 2021.
- Submit a roadmap for pan-India CTS coverage and a status report to RBI at [email protected] by April 30, 2021.
- Choose and implement a suitable model (e.g., hub-and-spoke or branch-level infrastructure) and coordinate with RBI regional offices.
- Inform RBI of any challenges or delays in achieving full CTS coverage.
Who it affects
All Scheduled Commercial Banks including Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Local Area Banks, Payment Banks, Small Finance Banks, National Payments Corporation of India
What is the deadline for all branches to be under CTS?
All bank branches must participate in image-based CTS under respective grids by September 30, 2021.
What should banks submit to RBI by April 30, 2021?
Banks must submit a roadmap to achieve pan-India CTS coverage and a status report to [email protected].
Can banks choose their own model for CTS implementation?
Yes, banks are free to adopt a model of their choice, such as deploying infrastructure in every branch or using a hub-and-spoke model, and must coordinate with RBI regional offices.