45. Which among the following is the objective of the Cheque Truncation System (CTS) introduced by the RBI ?

1. To reduce the flow of cheques in circulation by replacing cheques with digital financial transactions.

2. To discontinue the flow of physical cheques in the clearing process by transferring an electronic image of the cheque with essential MICR data.

3. To establish an electronic database that helps in the suspension of the circulation of those cheques that do not have the correct vital details.

4. To build capacity to enable interbank payments online and facilitate Corporate customer payments.

Correct Answer :

To discontinue the flow of physical cheques in the clearing process by transferring an electronic image of the cheque with essential MICR data.