Cheque Truncation System – Western Grid-Go Live April 13

Mumbaikars, be ready, CTS is on the way. You will experience a new way of Banking.

In the first half of 2013, the kick off for the CTS Western Grid commenced. The first detailed meeting was conducted on 18/01/2013. The detailed road-map was circulated by NPCI.

The Western CTS Grid constitutes 43.59% of the nation’s clearing volumes.

The following is the list of the MICR centres which will be part of the Western CTS Grid: Mumbai, Pune, Nagpur, Nashik, Kolhapur, Aurangabad, Solapur, Indore, Bhopal, Gwalior, Jabalpur, Ahmedabad, Surat, Vadodara, Rajkot, Jamnagar, Bhavnagar, Anand, Goa, Raipur.

NCR is the technology supplier for the Western CTS Grid and NPCI has already released the Purchase Order. Safenet is the preferred partner for HSM (Hardware Security Module)

A major difference in the ‘Paper to Follow’ (P2F) process between Delhi CTS and Mumbai CTS is that in Mumbai, the ‘Exchange Across Table’ method will be rolled-out, rather than  Drop Boxes @ MICR/ Delhi CTS

To smoothen the rollout process, at NPCI is :

  1. Organizing CTS Workshops in each CTS Grid city.
  2. Organizing Focused Session for banks new to CTS in each Grid city.
  3. Organizing Training Programmes on CTS in each Grid city.
  4. Organizing Fraud Awareness Workshops for member banks.

One of the key benefits for the member banks is that there will be no Reconciliation differences (RBNL, LBNR) as MICR data and images travel together.


Currently, the following 4 CTS Participation Models are envisaged:-

Direct: Bank having own Capture, CHI Infra & Settlement account, participates on its own

Indirect: Bank having own Capture, however uses the CHI infra of another bank

Service Bureau: Capture infra is established by the vendor and they will have an arrangement with third party bank for using CHI infra

Sub member: Sub member bank will be treated as extended branch of another bank. They will not have own MICR Code and identity in clearing process. They will route transactions through sponsor bank and settlement will happen in account of sponsor bank.

   In normal MICR clearing, the sub-members are having a separate MICR Code. However, under CTS, there will no separate MICR Codes for the sub-members.


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