The above graph represents the total number of cheque transactions through CTS in India by month. India recorded about 89.67 million cheque-based transactions that cleared through CTS (Cheque Truncation System) in October 2019, as compared to 82.65 million transactions recorded in the previous month. That showed a considerable 8.49% month-over-month growth in CTS transaction volume. On a yearly basis, it was a notable 8.3% YoY decline in the number of CTS transactions.
|Source||Reserve Bank of India (RBI)|
|Note||India fiscal year starts from April 01|
In December 2016, the Cheque Truncation System (CTS) processed over 100 million cheques in volume for the first time, with an increase of 49.3% month-over-month. The growth in cheque volume was mainly due to the announcement of demonetization of Rs 500 and Rs 1000 notes. The total transactions stood at 130.01 million in December 2016, as against 87.08 million in the previous month.
However, it couldn’t last longer than 4 months as in April 2017, India witnessed a notable decline of 20% M-o-M in the number of cheques cleared through CTS. Only 95.26 million cheques were cleared via Cheque Truncation System in April, which declined from 119.21 million in March 2017.
What Is the Cheque Truncation System (CTS)?
Cheque Truncation System (also known as Image-based Clearing System (ICS)) is the process of stopping the physical movement of cheques, issued by a drawer to the drawee branch. Instead, an electronic image of the cheque is being sent to the drawee branch, along with some relevant information such as the MICR fields, date of presentation, etc.
Digital Transactions In India: Additional Information
The internet revolution has resulted in exploded adoption of digital methods of transactions worldwide. The users of Credit & Debit cards, mobile and internet nowadays are far more aware and digitally empowered with making financial transactions. In the last few years, however, digital transactions have branched out into multiple types of financial transactions.
Started with the use of Credit and Debit cards at POS in large retail stores, digital transactions industry has come a long way. The introduction of mobile wallets and UPI have transformed the whole digital transaction industry in India. RTGS (Real Time Gross Settlement), NEFT (National Electronic Fund Transfer), CTS (Cheque Truncation System), IMPS (Immediate Payment Service), NACH (National Automated Clearing House), UPI (Unified Payments Interface) and PPI (Prepaid Payment Instruments) are the main type of financial transactions that fall under the Digital transaction category.
Digital transactions save time and money, resulting in a better bottom line. Customer experiences are also enhanced (think of the convenience of eSigning versus having to print a contract, sign it, and then return it by mail or fax). And digital transactions improve tracking capabilities, which helps reduce errors.
The exploded adoption of smartphones, mobile apps and mobile internet has helped Digital transaction industry to grow at an unprecedented rate. With more than 500 million smartphone users, India is one of the largest countries by the number of digital transactions that are recorded every month.
The above graph is a part of Dazeinfo GraphFarm – the most trusted source of hundreds of thousands of market graphs. Our team of researchers mines millions of data points every month to bring the most updated and validated set of data points representing the comprehensive view in a graphical format. From mobile to e-commerce, from Retail to healthcare, from startups to SMEs we have carefully designed thousands of graphs for those who value and understand the importance of data visualisation.