Cheque Truncation System

Cheque Truncation System (CTS) is pioneered by the Reserve Bank of India – RBI, for faster clearing of cheques. It is an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MCR) data is captured at the collecting bank branch and transmitted electronically. This procedure eliminates the need for physical transfer of cheques across branches, except in certain cases.

NPST offers a complete end to end solution, for a single as well as multi branch environment. Our Solution is approved by National Payment Corporation of India (NPCI) and has been created for delivering robust platform which can be integrated with any CBS. Our solution has the capacity to scan 100 cheques per minute and can process the same with multiple users on a single point of time.

NPST’s Cheque Truncation System (CTS) automates the following key processes.

  • Outward Clearing: Enables presenting banks to scan physical checks through available check scanner and presenting it to the clearing house after a series of work steps.
  • Inward Clearing: Replaces physical instruments coming from the clearing house with scanned images for further processing.
  • Outward Return: Handles images for returned/bounced checks, a report is prepared and sent to the drawee branch
  • Inward Return: Handles images for returned/bounced checks, a report is prepared and sent to the presenting branch

Benefits of CTS to both customers and Banks

  • Shorter clearing cycle due to which a customer’s account is credited faster
  • Superior verification and reconciliation process
  • No geographical restrictions
  • Operational efficiency for banks and customers
  • Reduction in operational risk and risks associated with paper clearing.
  • The scope for committing frauds is generally reduced