Cheques put on fast track
Oct. 7: No more waiting for for encashment of cheques. With the introduction of a new Cheque Truncation System (CTS) in place, you can get the money on hand on the same day doing away with the current 2-3 day time lag.
For this, the RBI has appointed the US technology firm, NCR Corporation, as the preferred partner to unveil the system in Chennai. “Satisfied with the execution of our pilot project was in New Delhi which had a daily cheque volume of 5.5-6 lakh instruments a day, RBI has asked us to replicate the same in Chennai,” said Navroze Dastur, general manager, channel partners and strategic alliances, NCR South Asia. The project, if successful, could be scaled up for the entire country.
What is CTS? Cheques are processed either at individual branches or at service level branches which collect these instruments at the end of the day. Instead of passing around the paper cheque leaves, its image is captured which is then processed digitally. “This solution eliminates the phy-sical movement of cheques bringing in more efficiency and speedy clearance into the system,” he said.
CTS will be in place in Chennai by March 2011. After this, it will be extended as a southern grid, which includes Andhra Pradesh, Karnataka and Puducherry. “If the original plan of southern grid (interlinking of banks across states) is achieved, it would even bring down the current 10-15 day processing time of inter-city cheques to just a day or two,” he said.
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