NCR Corporation and National Payments Corporation of India (NPCI) have completed the Cheque Truncation System (CTS) project in India.
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Started by the Reserve Bank of India in December 2007 to ease the process of cheque clearing in the country, the project will replace the traditional process of physically moving the cheques with electronic clearing using NCR’s image-based software that is secure, fast and cost efficient.
The CTS project is categorized into three grids: North Grid based in Delhi, South Grid in Chennai and the West Grid in Mumbai.
The grids are powered by image-based cheque scanning technology of NCR APTRA Clear and ImageMark Archive software, which will allow banks to capture the images of the cheque and transfer it to the drawee bank electronically through the clearing house based in NPCI.
The new technology, that has been implemented in the North Grid in the first phase followed by the South and the West, aims to reduce the cheque processing settlement time allowing an average volume of four million cheques to be processed and cleared per day.
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By GlobalDataNavroze Dastur, managing director for NCR India, said: "Cash availability schedules, transfer delays, fraud potential and the inherent manual process in banks increase the risk and cost associated with existing cheque clearing environments. The electronification of paper processing improves the potential for increased efficiencies, enables significant risk reduction and lower transaction costs."
