Notwithstanding to the CCP of concerned collecting bank, ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customers’ accounts immediately after closure of the relative return clearing on the next working day or maximum within an hour of commencement of business on the third working day from the day of presentation in clearing, subject to usual safeguards.Credit arising out of local cheques shall be given to the customer’s account as indicated in the Cheque Collection Policy (CCP) of the concerned collecting bank. Local cheques are payable within the jurisdiction of the clearing house and will be presented through the clearing system prevailing at the centre.♦RBI Guidelines on collection of Cheques Local Cheques The benchmark prescriptions are collectively known as “CTS-2010 standard”. Accordingly, certain benchmarks towards achieving standardisation of cheques issued by banks across the country have been prescribed like – quality of paper, watermark, bank’s logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques.Under this approach the entire cheque volume in the country which was earlier cleared through 66 MICR Cheque Processing locations is consolidated into the three grids in New Delhi, Chennai and Mumbai. The new approach envisioned as part of the national roll-out is the grid-based approach.What is the new approach to CTS implementation in the country? After migration of the entire cheque volume from MICR system to CTS, the traditional MICR-based cheque processing has been discontinued across the country. CTS has been implemented in New Delhi, Chennai and Mumbai with effect from February 1, 2008, Septemand Aprespectively.What is the status of CTS implementation in the country? This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes.In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch.♦Implementation of Cheque Truncation system (CTS) What is Cheque Truncation? Attempt Jaiib/DBF Quiz test (Unit- Wise).Read More Jaiib/DBF Study Material (Unit wise).JAIIB/DBF Paper-3 (Legal and Regulatory Aspects of Banking) Online Mock Tests.JAIIB/DBF Paper-II (Accounting & Financial for Bankers) Online Mock Tests.JAIIB/DBF Paper-I (Principle and Practices of Banking) Online Mock Tests.What happens if cheques / instruments are lost in transit / in clearing process?.♦RBI Guidelines on collection of Cheques.What is the new approach to CTS implementation in the country?.What is the status of CTS implementation in the country?.♦Implementation of Cheque Truncation system (CTS).