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Adopt uniform holiday calendar for CTS cheque clearing: RBI

The uniform holiday arrangement will enhance the customer service in banks through faster realisation of cheques even on holidays in respective states

August 24, 2013 10:39 IST | India Infoline News Service
The Reserve Bank of India has directed banks to adopt a uniform holidays calender to streamline cheque clearing system for Cheque Truncation System (CTS) centres in New Delhi, Chennai and Mumbai.

“Grid-based Cheque Truncation System (CTS) has been launched in Chennai and Mumbai covering several States/Union territories with the objective of streamlining the procedures in cheque clearing system,” the RBI said in a notification on Friday.

Under grid-based CTS clearing, all cheques drawn on bank branches falling in the grid jurisdiction are treated and cleared as local cheques on T+1 basis. As such, the uniform holiday arrangement will further enhance the customer service in banks through faster realisation of cheques even on holidays in respective states, it added.

The RBI has been decided to put in place the uniform holiday arrangement at the three CTS locations as detailed overleaf with effect from October 7, 2013.

The CTS centers in New Delhi, Chennai and Mumbai will adopt RTGS (real-time gross settlement) holidays as uniform holidays for the respective grid.

Additionally, CTS operations will be closed on such days when all the participating states in the grid are observing holidays, even though RTGS is working on such days.

The President of the respective CTS location will notify the list of such uniform holidays well in advance to enable the participating banks to put in place inward clearing processing infrastructure at the grid location.

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