Question

In payment system what CTS stands for?

A Central Transaction System Correct Answer Incorrect Answer
B Clearing Transaction System Correct Answer Incorrect Answer
C Cheque Truncation System Correct Answer Incorrect Answer
D Core Truncation System Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Cheque Truncation System (CTS) stops the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.

Practice Next

Relevant for Exams:

×
×