How cheque works

A cheque is a written order directing a bank to pay a specific amount from the drawer's account to a payee. In India, the process works through the Cheque Truncation System (CTS), where electronic images and MICR data are transmitted for faster clearing. Key steps include:

• The drawer writes the payee's name, date, amount in words/figures, and signs the cheque.
• The payee deposits it at their bank.
• The bank scans and electronically sends the details to the clearing house.
• Funds are verified and debited from the drawer's account and credited to the payee, often within the same day.