The Cheque Truncation System (CTS) is another innovative solution that has been developed to enhance the efficiency of paper based clearing system. CTS has eliminated the need for physical movements of cheques. Speed clearing has been introduced by the Reserve Bank to reduce the time taken in clearing up-country cheques and take advantage of and leverage the core banking technology adopted by banks. 8.
The advent of electronic payment modes has speeded up transaction processing and settlement. The NECS, with its centralised processing capability coupled with the implementation of Core Banking Solutions (CBS) has brought down the clearing and settlement cycle to its current T+1 basis.