Cheque Truncation System (CTS) is an image-based cheque clearing system. With CTS, the cheque will be scanned upon deposit and its electronic image (instead of the physical cheque itself) will be transmitted throughout the entire clearing cycle.

With CTS implementation, whenever a cheque is dishonored, an image return document (IRD) will be generated and sent to the payee. This IRD is a legal substitute for the dishonored cheque.