basis. It was averred that the cheque being
a non-CTS cheque was returned due to system failure of the Bank.
The matter of returning ... Bank informed that the cheque in question being a non-CTS
cheque was returned on 18.01.2014 due to technical snag in
computer. It was averred
detailing the procedure for
processing CTS 2010 and Non-CTS 2010 instruments in the three CTS
grid locations (Chennai, Mumbai and New Delhi ... that the
cheque was rejected on account of alterations under the CTS cheque
rules effective from April 2014, and being so, it was the duty
CTS guidelines, it
is the responsibility of the presenting bank (CTS representative) not to
present stale cheques in clearance unless the cheque passes the date ... would like to give a small explanation of CTS clearance
adopted by the bank. CTS means Cheque Truncation System. In
order to avoid physical movement
Complainant deposited on 07-02-2017 a Non CTS cheque bearing
No. 240759 for Rs. 65,000/- dt 07-01-2017 drawn on Indian Bank
cheque related fraud cases, relevant part of which is reproduced hereunder:-
"......Cheque related fraud cases - preventive measures
The rise in the number of cheque ... forgery. The cheques in question were ordinary and not issued under CTS (Cheque Truncation System). It is significant to mention here that
System(CTS) for clearing the
cheque, there is no need to send the physical cheque to drawee
bank under CTS system and cheque return reasons ... presented to it in CTS by OP
No.2, CTS at Chandigarh and on receiving the image of the cheque
in Inward Clearing System
Cheque Truncation System,
no physical cheque is being required to be sent to different branches.
As per this system, the photocopy of the cheque ... Cheque Truncation System and they would require submission of
data and images of the cheque to be sent for grid clearing. As per
CTS
guidelines for undertaking
and implementing a clearing system known as Cheque Truncation
System (CTS clearing) wherein data on the cheque is captured at the
collecting ... Reserve Bank of India had started
clearing system, namely Cheque Truncation System (CTS clearing)
for effective reduction in time required for payment of cheque
date with
Mr.Kishor attaching image of subject cheque which was presented as Non-
CTS Session was sent with remark that the cheque ... having left side
portion where CTS-2010 is usually printed on a CTS compliant cheque
and resultantly, in erroneously, treating it as Non-CTS instrument
Instruments Act 1881 for
negligently dealing payment of cheque.
20. Cheque clearing process i.e. CTS 2010 was in
operation when cheque in question ... issued by
complainant to Insurance company. In Cheque clearing
process (CTS) physical movement of cheque is eliminated and
electronic image of cheque is sent
