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  9. Q42

PPSC PCS 2020 · Question 42 of 95

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

Economy

  1. ATo reduce the flow of cheques in circulation by replacing cheques with digital financial transactions.
  2. BTo discontinue the flow of physical cheques in the clearing process by transferring an electronic image of the cheque with essential MICR data.Correct
  3. CTo establish an electronic database that helps in the suspension of the circulation of those cheques that do not have the correct vital details.
  4. DTo build capacity to enable interbank payments online and facilitate Corporate customer payments.

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

Explanation

The Cheque Truncation System stops physical cheque movement by clearing on electronic images with MICR data.

Source: https://cdn.mindspritesolutions.com/examrace/SPSC/Punjab-PSC/Punjab-PSC-Past-Papers/Punjab-Civil-Service-2020-Official-Paper-1-Part-1.pdf

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