Implementation of Cheque Truncation System (CTS)
The Reserve Bank of India (RBI) has decided to dispense with the requirement of forwarding government cheques in physical form to the Government.
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 payment system.
As a result, banks will no longer be required to forward government cheques in physical form to the Government. Instead, they will be required to upload the cheque details and images on the CTS platform.
Changes to the Memorandum of Instructions:
The RBI has also made changes to the Memorandum of Instructions for reporting of government transactions. Banks will now be required to report government transactions on a daily basis, instead of the current practice of reporting on a weekly basis.
The changes are aimed at improving the efficiency and transparency of government transactions, and to reduce the time taken for clearance of government cheques.
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