RBI Governor Shaktikanta Das proposed transitioning the Cheque Truncation System (CTS) to continuous clearing, aiming for same-day cheque clearance. Currently, cheques are processed in batches, leading to up to two-day settlement cycles. CTS, introduced in 2008, uses electronic images instead of physical cheques, reducing costs and risks. The new proposal would speed up clearance, enhance security, and minimize fraud.
