Dispensation of Physical Forwarding of Government Cheques
The Reserve Bank of India (RBI) has decided to dispense with the requirement of forwarding government cheques in physical form to government departments and agencies.
This decision is in line with the implementation of the Cheque Truncation System (CTS), which aims to reduce the physical movement of cheques and increase the efficiency of the cheque clearing process.
Under CTS, cheques will be scanned and transmitted electronically, eliminating the need for physical transportation of cheques.
This dispensation will apply to all government departments and agencies, including Central and State Governments, Public Sector Undertakings, and Autonomous Bodies.
The RBI has advised banks to ensure that their systems are capable of handling electronic images of cheques and to make necessary arrangements for the smooth implementation of CTS.
Banks have also been instructed to educate their customers, including government departments and agencies, about the benefits and procedures of CTS.
The implementation of CTS is expected to reduce the time taken for cheque clearing, minimize the risk of loss or theft of cheques, and increase the efficiency of the payment system.
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