Module: General Practice
Q68: [Updated Feb 2026] Consider the following statements regarding the "Continuous Clearing" of cheques under CTS:
As of January 2026 (Phase 2), the clearing cycle has shifted from batch processing to "Real-Time" or "Continuous" clearing with settlement occurring within hours.
Under the new regime, cheques presented up to 4:00 PM are cleared and credited on the same day.
The "Paper to Follow" (P2F) physical movement of cheques is now mandatory for all values above ₹1 Lakh.
Which of the statements given above is/are correct?
Under the new regime, cheques presented up to 4:00 PM are cleared and credited on the same day.
The "Paper to Follow" (P2F) physical movement of cheques is now mandatory for all values above ₹1 Lakh.
Which of the statements given above is/are correct?
✅ Correct Answer: B
Concept: CTS Reforms 2025-2026 (Speed of Clearing). Statement Analysis: Statement 1 is Correct: Phase 2 of the CTS reform (effective Jan 2026) introduced Continuous Clearing.
Cheques are processed as they are presented (scanned) rather than waiting for an end-of-day batch.
Statement 2 is Correct: This enables Same-Day Settlement (T+0) for cheques deposited within banking hours (e.g., by 4 PM), drastically reducing the float time.
Statement 3 is Incorrect: The entire logic of Cheque Truncation System (CTS) is stopping the physical movement of cheques. "Paper to Follow" (P2F) is generally abolished/minimized, not made mandatory for ₹1 Lakh.
The digital image is the legal tender.
Cheques are processed as they are presented (scanned) rather than waiting for an end-of-day batch.
Statement 2 is Correct: This enables Same-Day Settlement (T+0) for cheques deposited within banking hours (e.g., by 4 PM), drastically reducing the float time.
Statement 3 is Incorrect: The entire logic of Cheque Truncation System (CTS) is stopping the physical movement of cheques. "Paper to Follow" (P2F) is generally abolished/minimized, not made mandatory for ₹1 Lakh.
The digital image is the legal tender.