Cheque Truncation System in India – Unique Return Reasons


The NI Act defines a truncated cheque to mean “a cheque which is truncated during the course of a clearing cycle, either by the Clearing House or by the bank, whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing” (cf. Section 6 of the NI Act, 1881).

New Delhi Bankers’ Clearing House has published detailed Procedural Guidelines for Cheque Truncation System (CTS) (Version 2.0)


The following Cheque return reasons are exclusive for CTS Clearings:

Bank customers need to understand them, so that they can take adequate steps to enable them to receive money from the Drawer of the Cheque.

  • Image not clear, present again with paper: The scan image of the cheque received by the Paying Bank is not clear. Hence, the request to represent again with the Paper Cheque.
  • Present with document: Same as above


  • Item listed twice: The respective cheque has already been received by the Paying Bank and paid. This mistake happens when the same cheque is presented once in CTS and the 2nd time in MICR Clearing. Or, the same cheque is presented twice in CTS.


  • Paper not received: The paying banker is supposed to receive the Paper cheque, but it has not been received.

In all the above cases, it is the responsibility of the Presenting banker to take action. Ideally, the customers should not get ‘return cheques’, with the above reasons.


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