NEGOTIABLE INSTRUMENTS E- PURSE TRUNCATION OF CHEQUE The word “ negotiable” means “transferable from one person to another” A negotiable instrument is a signed document that promises a sum of payment to a specified person Negotiable instruments are transferable in nature Sec.13 of the Indian Negotiable Instrument Act, 1881 defines a negotiable instruments as “ a promissory note, bill of exchange or cheque payable either to order or to the bearer.” Commercial banks also deal with these instruments. The bank collects these instruments for the customers to grant loans and advances against these instruments Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques. 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.