What is p2f?

Author

Christopher Ramos

Published Mar 11, 2026

What is p2f?

Alankit aids the implementation and management of Paper to Follow (P2F) Process for the Cheque Truncation System through its comprehensive network of offices, which is an initiative of the NPCI to compress the clearing cycle for providing faster clearance of cheques.

Then, what is paper to follow in clearing?

Paper to follow will usually comes while clearing the cheque electronically through CTS (cheque truncation system). It means that though the scanned image has been sent to the respective bank whose cheque it is, they still wants the physical cheque for clearing.

One may also ask, how many CTS grids are there in India? three

Regarding this, what is CTS clearing?

Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing.

What is 42 paper not received?

Illustrative but not exhaustive list of objections where customers are not at fault

Code No.	Reason for Return
42	Paper not received
60	Crossed to two banks
61	Crossing stamp not cancelled
62	Clearing stamp not cancelled

What is the procedure of Cheque clearing?

Cheque clearing (or check clearing in American English) or bank clearance is the process of moving cash (or its equivalent) from the bank on which a cheque is drawn to the bank in which it was deposited, usually accompanied by the movement of the cheque to the paying bank, either in the traditional physical paper form

What is p2f in CTS clearing?

Alankit aids the implementation and management of Paper to Follow (P2F) Process for the Cheque Truncation System through its comprehensive network of offices, which is an initiative of the NPCI to compress the clearing cycle for providing faster clearance of cheques.

What is inward clearing?

Inward clearing means the cheques received by the bank from other banks. These - Inward clearing - cheques are the cheques drawn by the bank/branch customers on their account in favour of other parties.

Who is presenting bank?

The bank requesting payment of a collection bill is a presenting bank. A presenting bank can be a collecting bank, its nominated branch, or local correspondent which is better placed to contact the importer. Pursuant to U.C.C. § 4-105, a presenting bank means a bank presenting an item except a payor bank.

What is CTS full form?

1) CTS: Cheque Truncation System

CTS stands for Cheque Truncation System. It is a project of Reserve Bank of India which was launched for faster clearance of cheques. It does not involve physical transfer of cheques from one bank to another bank.

What is CTS alteration?

The RBI has clarified that its directive on prohibiting alterations/corrections on cheques 'will be applicable only for cheques cleared under the image-based Cheque Truncation System (CTS)'. Here, the cheque is scanned and electronically presented for settlement with the clearing house.

What type of Cheque Cannot be presented in CTS clearing?

This would help banks in identifying and controlling fraudulent alterations. This prohibition is applicable to cheques cleared under the image based Cheque Truncation System (CTS) only. It is not applicable to cheques cleared under physical exchange of instruments.

How long does it take for a local check to clear?

The time-frame for collection of cheques drawn on state capitals and major cities has been capped at seven days and ten days respectively. For all other locations, banks have to clear the cheque within 14 days.

What is Clearing House Interface?

Clearing house interface. Full Definition. A Clearing House is a centralized facility for the exchange of mutual claims by financial institutions with settlement of the net balance. The aim is to provide the branches of a bank with an electronic link to their local clearing house.

Is CTS Cheque compulsory?

From January 1, it will be mandatory to use only new cheque leaves that are compliant with the technology that enables their scanning and transmission online. The process is speeded up by what is called a cheque truncation system (CTS).

What is MICR clearing?

Cheque Truncation System. CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically.

What is speed clearing?

Speed Clearing refers to collection of outstation cheques through the local clearing. It facilitates collection of cheques drawn on outstation core-banking-enabled branches of banks, if they have a net-worked branch locally.

How does the check clearing process work?

Check clearing is the process of moving funds from one account to another. It simply means that the checks, once deposited into the bank, need to be transferred to the clearing system, which then communicates with the other banks that the checks are from.

What is difference between CTS and non CTS Cheques?

Non-CTS compliant cheques shall not be processed for clearing with effect from January 1, 2019, the PNB said in a notification. The Cheque Truncation System (CTS) is a process of stopping flow of physical cheque in which an electronic image of the instrument is presented when it comes for clearing.

How many clearing houses are there in India?

860

How many grids are in a Cheque truncation system?

Under this approach the entire cheque volume in the country which was earlier cleared through 66 MICR Cheque Processing locations is consolidated into the three grids in New Delhi, Chennai and Mumbai. Each grid provides processing and clearing services to all the banks under its respective jurisdiction.

How do I find my CTS Cheque?

The Branch address and IFSC code should be on the top left side of the cheque.
The word “CTS-2010” must be printed on the left hand side of the cheque near perforation.

What is meant by Cheque return?

A returned check is a check the bank does not honor. The check will be returned to the bank that submitted the check for payment. If you are the check writer, it means your bank will not pay the person or business to whom you wrote the check.

What is title of account required?

A V Vishal (Expert) 2010. 10 January 2010 In Banking Parlance Title of account required refers to the company stamp that must accompany the signature of a director/ authorized signatory. Parveen Kr.

What are the reason for Cheque bounce?

Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds.

What is the meaning of image not clear in Cheque?

It means that the image of the cheque that has been received by the cheque issuing bank is not clear. Under the cheque truncation system, cheques are not physically sent to the clearing house. Banks scan the cheques and send the images to the bank that has issued the cheque.

What is listing error in bank?

Your Action

If you received the item in an electronic cash letter and the item amount does not match the X9. 37 file amount, refer to the Encoding Error (ENC) ITYP. If a paper item is listed to you incorrectly, refer to the Information Request (INFO) ITYP for this type of error.

What is exclusive CTS return reason?

40 Present with the document (Exclusive CTS return reason) 41 An item listed twice (presenting bank has presented the same instrument twice, this happens when first the cheque is presented via MICR and the second time via CTS or vice-versa)

Who is drawer?

A drawer is a person who draws a cheque in favour of someone. The bank of the drawer is the drawee and the person in whose favour the cheque is drawn is called a payee.

What is connectivity failure?

After exhausting all avenues if it is necessary to return the cheque due to link failure, it may be returned under Reason Code 84 (Other reasons-Connectivity Failure), with no charges to be debited to the payee's account. No charges shall be recovered from the payee for return of the cheque in such cases.

What do you mean by exceeds arrangement?

The reason "exceeds arrangements" is typically used by bankers to mean insufficient funds in an account, where the account has been given credit facilities (like cash credit/overdraft). You may send notice u/s 138.

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