What is the full form of CTS

1) CTS: Cheque Truncation System

CTS stands for Cheque Truncation System. It is a project of Reserve Bank of India which was launched for faster clearance of cheques. It does not involve physical transfer of cheques from one bank to another bank. It is basically an online image based cheque clearing system which uses cheque image to clear the cheque. An electronic image of the cheque along with MICR number is sent to the drawee bank from the drawer bank.

Brief History

• The CTS was first launched in National Capital Region, New Delhi by Reserve Bank of India in February 2008.
• In September 2011, it was launched in Chennai.
• In 2013, RBI decided from 1 August 2013 only CTS-2010 cheques would be accepted by the banks for clearance. Later, in July 2013, this deadline was extended to 31 December 2013.

Benefits of CTS

• It saves time, money and efforts involved in the physical movement of cheques.
• The cheques clear faster which results in better customer service.
• It improves the operational efficiency of banking system.
• It reduces the chances of fraud related to clearing of cheques.
• No fear of losing cheques in transit.
• No geographical restrictions.

2) CTS: Clear to Send

CTS stands for Clear to Send. It is a flow control signal or mechanism in RS-232 standard. It indicates that a line or device is ready for data transmission e.g. ready to move. CTS signal is sent in response to RTS (Request of Send) flow control signal. The RTS signal is sent by the sending device to tell the receiving end to get ready to receive or set its CTS line when it is ready. When the receiving end is ready to receive, it sends the CTS signal to tell the other end to send the data. Thus, CTS and RTS allow the receiver and the transmitter to alert each other before initiating the data transmission.