The CARB in USA has demanded OBD functions that detect any deterioration of performance of OTS as well as a simple defect of OTS which can affect emission to meet the reinforced emission regulation. In this paper, OTS plausibility monitoring functions to meet the demand from CARB are discussed. The output from OTS is used for the diagnostics of the torque converter clutch stuck and the gear ratio synchronous error. It is possible to diagnose the abnormality of OTS function by considering the oil temperature characteristics which changes according to the driving status of vehicles. In result, the OBD regulations of the CARB can be satisfied obligating car manufacturer to detect any problems in OTS functions which can affect emissions.