CHEQUE TRUNCATION SYSTEM: CTS 2010 - (Bank Of Baroda)
MCQ on Indian Contract Act 1872
MCQ on CHEQUE TRUNCATION SYSTEM: CTS 2010
1. What is Cheque Truncation in the context of CTS 2010?
A. Stopping the physical movement of the cheque and sending an electronic image instead
B. Physically transporting the cheque from drawer to drawee
C. Destroying the physical cheque after payment
D. Sending only the MICR fields electronically
Cheque Truncation in the context of CTS 2010 refers to stopping the physical movement of the cheque and instead sending an electronic image of the cheque along with relevant information to the drawee branch.
2. What key information is sent along with the electronic image of the cheque in CTS 2010?
A. MICR fields, date of presentation, and presenting bank details
B. Only the MICR fields
C. Only the cheque number
D. Account balance details
Along with the electronic image of the cheque, CTS 2010 sends key information such as the MICR fields, date of presentation, and presenting bank details to the drawee branch.
3. Where does truncation of the physical cheque take place in the CTS process?
A. At the presenting bank's head office
B. At the drawer's bank branch
C. At the Reserve Bank of India
D. At some point en-route to the drawee branch
In the CTS process, truncation of the physical cheque takes place at some point en-route to the drawee branch, where it is replaced with an electronic image for further processing.
4. What is the purpose of truncating the physical cheque in CTS 2010?
A. To speed up the cheque clearing process
B. To ensure the physical cheque reaches the drawee branch
C. To allow multiple banks to access the cheque
D. To increase the validity period of the cheque
The purpose of truncating the physical cheque in CTS 2010 is to speed up the cheque clearing process by sending an electronic image and relevant information to the drawee branch instead of the physical cheque.
5. In the CTS 2010 process, which entity is primarily responsible for truncating the physical cheque?
A. The presenting bank
B. The drawee bank
C. The Reserve Bank of India
D. The payee
In the CTS 2010 process, the presenting bank is primarily responsible for truncating the physical cheque and sending the electronic image to the drawee bank.
6. What advantage does Cheque Truncation offer over the traditional cheque clearing process?
A. Slower communication between banks
B. Increased manual verification
C. Higher risk of fraud
D. Faster clearing times
Cheque Truncation offers the advantage of faster clearing times by eliminating the need to physically transfer cheques between banks, thus speeding up the overall process.
7. How does the drawee branch verify the cheque in the CTS 2010 system?
A. By examining the electronic image and associated data
B. By receiving the physical cheque from the presenting bank
C. By contacting the drawer directly
D. By matching the cheque number with the bank's records
In the CTS 2010 system, the drawee branch verifies the cheque by examining the electronic image and associated data, including MICR fields, date of presentation, and presenting bank details.
8. What is the primary purpose of including MICR fields in the electronic image sent during the CTS 2010 process?
A. To manually verify the cheque details
B. To facilitate the automated processing of the cheque
C. To store the cheque image in the bank's archives
D. To send the cheque back to the drawer for approval
The primary purpose of including MICR fields in the electronic image is to facilitate the automated processing of the cheque, ensuring that it can be efficiently cleared and settled.
9. What does CTS stand for in the context of the cheque clearing system in India?
A. Cheque Truncation System
B. Centralized Truncation Service
C. Cheque Transfer Service
D. Centralized Transaction System
CTS stands for Cheque Truncation System, a system introduced to improve the efficiency and speed of the cheque clearing process by replacing physical movement with electronic processing.
10. Which of the following is NOT an advantage of the Cheque Truncation System (CTS 2010)?
A. Faster settlement of cheques
B. Reduced risk of loss or damage to cheques
C. Slower cheque clearing process
D. Cost savings on physical transportation
The Cheque Truncation System (CTS 2010) does not result in a slower cheque clearing process; in fact, it significantly speeds up the process by eliminating the need for physical transportation of cheques.
11. What is the primary method for verifying the watermark of the bank's logo and name on a cheque?
A. Against light or through UVR machine
B. By rubbing the cheque surface
C. By using a magnifying glass
D. By scanning the cheque
The watermark of the bank's logo and name on a cheque can be verified against light or through a UVR machine, ensuring authenticity.
12. What is the standard background color of cheques issued for Savings Bank (SB) Accounts?
A. Light green
B. Light orange
C. Light blue
D. Light gray
The standard background color of cheques issued for Savings Bank (SB) Accounts is Light gray.
13. Which of the following account types uses cheques with a Light orange background color?
A. Current Account (CA)/Overdraft Account (OD)
B. Cash Credit Account (CC)
C. Savings Bank (SB) Account
D. Term Deposit Account
Cheques with a Light orange background color are used for Current Account (CA) and Overdraft Account (OD).
14. What special feature is present on cheques to help identify the Rupee amount?
A. New Rupee Symbol in a separate box preceding the amount in figures
B. MICR code at the bottom
C. Barcode on the top-right corner
D. Hologram sticker next to the signature line
The New Rupee Symbol is placed in a separate box preceding the amount in figures on cheques to help identify the Rupee amount.
15. Where is the printer's name and the CTS 2010 identification usually located on a cheque?
A. At the bottom of the cheque
B. On the right side of the cheque
C. At the top center of the cheque
D. On the left side of the cheque
The printer's name and CTS 2010 identification are usually located on the left side of the cheque.
16. What does the IFSC Code on a cheque signify, and how many characters does it contain?
A. It signifies the cheque number and contains 6 characters
B. It signifies the bank's branch code and contains 11 characters
C. It signifies the account number and contains 12 characters
D. It signifies the drawer's identity and contains 9 characters
The IFSC Code on a cheque signifies the bank's branch code and contains 11 characters.
17. What is the purpose of the UV logo on a cheque?
A. It is printed with special ink visible only through a UVR machine.
B. It is visible to the naked eye in daylight.
C. It is used for scanning the cheque in bank systems.
D. It contains the bank's branch code.
The UV logo on a cheque is printed with special ink that is visible only through a UVR machine, providing an additional security feature.
18. What does the 'VOID' pantograph feature on a cheque indicate?
A. The word 'VOID' is printed in the account number field of the cheque.
B. The word 'VOID' is visible only on expired cheques.
C. The word 'VOID' is hidden in all original cheques and becomes visible in photocopies.
D. The word 'VOID' is visible under normal lighting conditions.
The 'VOID' pantograph feature on a cheque means that the word 'VOID' is hidden in all original cheques and becomes visible in photocopies, helping to prevent fraud.
19. What is micro lettering, and how can it be detected on a cheque?
A. Micro lettering refers to the small print of 'BANK OF BARODA' on the cheque, visible only through a magnifying glass.
B. Micro lettering is a type of barcode printed at the bottom of the cheque.
C. Micro lettering refers to the account number written in microscopic text on the cheque.
D. Micro lettering is a decorative element visible under UV light.
Micro lettering on a cheque refers to the small print of 'BANK OF BARODA' that can be detected only through a magnifying glass, adding another layer of security.
20. What happens when a drop of water is applied to the background of an original cheque?
A. The ink will wash off, indicating it is an original cheque.
B. The ink will remain intact, indicating it is an original cheque.
C. The ink will turn invisible under UV light.
D. The ink will reveal hidden security features.
When a drop of water is applied to the background of an original cheque, the ink will wash off, which does not happen with scanned or photocopied cheques, ensuring the genuineness of the cheque.
21. Which feature on a cheque helps in verifying the bank's logo and name under UV light?
A. Watermark
B. Void Pantograph
C. Micro Lettering
D. Rupee Symbol
The watermark on a cheque helps in verifying the bank's logo and name under UV light, ensuring the authenticity of the cheque.
22. What does the 'VOID' pantograph feature prevent?
A. Loss of cheque
B. Forgery of signatures
C. Unauthorized alterations
D. Photocopying of the cheque
The 'VOID' pantograph feature prevents unauthorized photocopying of the cheque by displaying the word 'VOID' on copies, thereby safeguarding against fraudulent duplication.
23. How can micro lettering on a cheque be identified?
A. By looking under UV light
B. By using a magnifying glass
C. By scratching the surface
D. By applying water on the cheque
Micro lettering on a cheque can be identified using a magnifying glass, which reveals the small text 'BANK OF BARODA' printed on the lines for the payee name and amount.
24. What happens to the background ink of an original cheque when exposed to water?
A. The ink washes off.
B. The ink changes color.
C. The ink becomes more vibrant.
D. The ink remains unchanged.
When exposed to water, the background ink of an original cheque washes off, indicating its genuineness and differentiating it from copies.
25. What is the significance of the rupee symbol on cheques?
A. It precedes the amount in figures to ensure clarity.
B. It represents the bank's branch code.
C. It is a decorative element.
D. It is only used for international cheques.
The rupee symbol on cheques precedes the amount in figures to ensure clarity and prevent any tampering with the figures.
