Since then he has been serving and holding different managerial positions in the Company.
In this system, instead of producing the physical cheques to the payee bank, just the electronic image of the cheque along with the MICR code and other cheque credentials are transmitted to the drawee bank for the payment through a clearing house. Benefits of Cheque Truncating System The speed of cheque clearance process has been increased manifold since there is no need for the physical transfer of cheques between the banks.
As there is no physical movement of cheques from one bank to the other, there is no fear of loss of cheque due to mishandling by either bank. The Cheque Truncation system has helped the banks to have a superior verification and an effective reconciliation process. The CTS system has eradicated the geographical restrictions as to the jurisdictions.
Earlier the clearance was restricted to the banks operating within the restricted geographical area, but now with this system, the cheques even drawn on upcountry banks can be cleared electronically with ease. The CTS-compliant cheques are prone to fewer frauds and hence are more secured than the old cheques.
The Cheque Truncation System was evolved to overcome the limitations of the earlier cheque clearing system that required several days of clearance. Thus, in order to overcome this delay, the cheque truncation system came into practice, wherein the electronic image of the cheque is sent to the payee bank, which further sends it to the RBI for the final settlement.
|Cheque Truncation System (CTS) | SOLUTIONS | SOLUTIONS||History[ edit ] For cheque clearance, a cheque has to be presented to the drawee bank for payment. Originally this was done by taking the cheque to the drawee bank, but as cheque usage increased this became cumbersome and banks arranged to meet each day at a central location to exchange cheques and receive payment in money.|
|Cheque truncation - Wikipedia||What is Cheque Truncation or truncation of cheques? Truncation literally means stopping or cutting short.|
Solution that we carry has been used in 90% of Cheque Clearing and Processing in Indonesia. Our Cheque Truncation System is a web-based solution, which can be accessed by banks’ personnel from any machine in the bank’s network.
The cheque image is truncated at the presenting bank and seamlessly moves . Cheque Truncation is an important efficiency enhancement initiative in the payment system area, undertaken by RBI. SBI has taken the first step and you will soon find this new system gets implemented across all the banks.
Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commencing in , for faster clearing of cheques.
CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted.
Definition: The Cheque Truncation System or CTS is the cheque clearance system introduced by RBI to fasten up the clearing of cheques. In this system, instead of producing the physical cheques to the payee bank, just the electronic image of the cheque along with the MICR code and other cheque credentials are transmitted to the drawee bank for the payment through a clearing house.