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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

NPCI - FAQ Note for CTS (Cheque Truncation System) Banks Onboarding Process

13-Aug-2025 | NA

National Payments Corporation of India (NPCI) has issued FAQ Note for CTS (Cheque Truncation System) Banks Onboarding Process.

Key Highlists:
1. Raising Requests in NPCI: Banks must submit all CTS onboarding, membership upgrades, or sponsor/DEM (Data Exchange Module) bank change requests through the Cflow portal with the required documents.

2. CTS 2010 Testing & Certification: Banks need to request testing via Cflow and send 500 sample cheques to NPCI?s Chennai or Mumbai office for certification.

3. User Access Creation: Cflow and CRM user IDs are obtained by raising requests in the NPCI CRM portal, with an ERP ID and specific documents (e.g., RBI license, GST certificate, PAN) required for new users.

4. Membership Types:
a. Direct Member Banks: Have their own DEM, settlement, and MICR codes.
b. Indirect Member Banks: Use another bank?s DEM but have their own settlement and MICR codes.
c. Sub Member Type-2 Banks: Have MICR codes but no DEM or RBI settlement account.

5. Onboarding Documentation: Each membership type requires specific documents such as RBI clearing arrangement letter, MICR allotment letter, GST certificate, NPCI 2010 certification, and relevant sponsor/indirect bank letters.

6. Shifting Arrangements: For changing a sponsor or DEM bank, banks must obtain necessary NOCs and updated arrangement letters from RBI and the concerned banks, then apply through Cflow.

7. Key Supporting Documents:
a. Clearing Arrangement Letter from RBI-DPSS Chennai.
b. RBI account confirmation for settlement and billing.
c. MICR (Magnetic Ink Character Recognition) allotment letter (9-digit code identifying city, bank, and branch).
d. Sponsor Bank and Indirect Bank letters confirming legal agreements.

8. NOC Requirement: A No Objection Certificate (NOC) from the current sponsor or DEM bank is mandatory before shifting to a new one.


For more information, please refer to the official document.

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