Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | CTS & Positive Pay Framework

Q18: In the context of modern banking, what does the term "Cheque Truncation" strictly refer to?

A
Destroying the cheque after payment
B
Stopping the flow of the physical cheque and replacing it with an electronic image
C
Reducing the size of the physical cheque to fit scanners
D
Cutting off the counterfoil of the cheque
✅ Correct Answer: B
Truncation means the physical cheque does not travel; instead, only the scanned image and MICR data flow through the clearing system.