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Cheque Truncation

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point en-route to the drawee branch. In its place an electronic image of the cheque is transmitted to the drawee branch along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.


Process flow in CTS

In CTS, the presenting bank captures the data (on the MICR band) and the images of a cheque using their Capture System which is internal to them. These have to meet the specifications and standards prescribed for data and images.

To ensure security, safety and non-repudiation of data / images, end-to-end Public Key Infrastructure (PKI) has been implemented in CTS. As part of the requirement, the collecting bank sends the data and captured images duly signed and encrypted to the central processing location (Clearing House) for onward transmission to the paying bank. For the purpose of participation the presenting and drawee banks are provided with an interface / gateway called the Clearing House Interface (CHI) that enables them to connect and transmit data and images in a secure and safe manner to the Clearing House.

The entire essence of CTS technology lies in the use of images of cheques (instead of the physical cheques) for payment processing.


Modules supported by CBS-Banc724 Interface layer for CTS

» Outward Cheque Clearing
» Inward Cheque Clearing
» Inward Returns
» Outward Electronic Funds Transfer
» Inward Electronic Funds Transfer
» In-house cheques
» Outward returns


Banc724- CTS Outward Clearing Features

» System is capable of defining clearing lots each branch
» System is capable of scanning the instrument (MICR) and scanning is integrated with the Banc724 core banking application. The images are scanned as per the NPCI standards
» System is capable of reading the scanned image and extract data required from the images for outward clearing.
» System is capable of providing upload file in the required format to transaction database.
» System is capable of providing Image file and data file (.xml, CSV) to interface with CHI.
» System is capable of centralized scanning and remote scanning also.
» System is capable of providing access privileges and controls.
» System is capable of providing maker and checker features
» System is capable of retrieving the data & image for future references.


Banc724- CTS Inward Clearing Features

» Inward CTS module is capable of importing the data and image file received from CHI
» Inward CTS Module is capable of providing maker and checker features
» Inward CTS Module is capable of providing backup and restoration features.
» Inward CTS Module is capable of retrieving the data & image for future references.
» Thru the Inward CTS module user can mark a cheque for return. Cheque return charges will be debited automatically and return instruments automatically moved to a outward clearing lot for further processing.
» Inward CTS module supports STP to avoid manual intervention. Only cheques with deficiencies reported for action.