Considered to be a major milestone in the history of Indian banking, Cheque Truncation System aims to make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby trimming down the floating time considerably.
India processes as many as 1.2 billion cheques annually and, therefore, the implementation of this system would drastically cut down the waiting period involved.
HOW DOES IT WORK
This is an online image-based cheque clearing system wherein the collecting bank branch would deploy scanned images along with the magnetic ink character of the cheque which will be sent out electronically using their Capture System.
The captured images and the data are then signed and encrypted and sent to the clearing house or the central processing location and, thereafter, forwarded to the drawee or paying bank.This helps speed up the cheque collection process.
Benefits of CTS for customers
There are many benefits of the cheque truncation system from the perspective of a customer.
Quadquickis a product devised to help small and medium sized as well as Co-operative Banks for participation in CTS clearing. Our USP is that QuadQuick CTS is being provided on SAAS platform and we do not charge anything for the s/w application but provide the application on usage based charges basis to member banks. Our solution works off-line and the files can be transferred using ordinary or regular internet connectivity to respective CHI gateways.
Quadpro is in the process of setting up CTS Facilitation Centers in every taluka and district of South India and these Image Service Bureau - ISB's will be instrumental in connecting all our consortium member banks to NPCI Southern Grid at Chennai.