Explain the entire process in Cheque Truncation System (CTS).

Cheque Truncation System (CTS): In Cheque Truncation System (CTS), the presenting bank (or its branch) captures the data (on the MICR band) and the images of a cheque using their Capture System (comprising of a scanner, core banking or other application) which is internal to their and meeting the specifications and standards prescribed for data and images under CTS. To ensure security, safety and non-repudiation of data/images, end-to-end Public Key Infrastructure (PKI) has been implemented in CTS. As part of the requirement, the collecting bank (presenting bank) sends the data and captured images duly signed digitally and encrypted to the central processing location (Clearing House) for onward transmission to the paying bank (destination or drawee bank). For participating in the clearing process under CTS, the presenting and paying banks use either the Clearing House Interface (CHI) or Data Exchange Module (DEM) that enables them to connect and transmit data and images in a secure and safe manner to the Centralised Clearing House (CCH). The Clearing House processes the data, arrives at the settlement, and routes the images and requisite data to the paying banks. This is called presentation clearing. The paying banks through their CHI/DEM receive the images and data from the CCH for further processing. The paying bank's CHI/DEM also generates the return file for unpaid instruments, if any. The return file/data sent by the paying banks are processed by the Clearing House in the return clearing session in the same way as presentation clearing and return data is provided to the presenting banks for processing. The clearing cycle is treated as complete once the presentation clearing and the associated return-clearing sessions are successfully processed. The entire essence of CTS technology lies in the use of images of cheques (instead of physical cheques) for payment processing.