NCR on Tuesday announced the completion of the Cheque Truncation System (CTS) project in India.
The CTS project, started by the Reserve Bank of India in December 2007, simplifies the process of cheque clearing in India. The government project uses NCR India’s image-based software for moving cheques to electronic clearing from the traditional physical movement.
The first phase implementation started in the Delhi NCR region followed by the South and West grids. The grids are powered by NCR APTRA Clear and ImageMark Archive software, using image-based cheque scanning technology that allows banks to capture the images of the cheque and transfer it to the drawee bank electronically through the clearing house based in National Payments Corporation of India (NPCI).
NCR’s cheque imaging technology and software applications have reduced the cheque processing settlement time from three days to two for intercity cheques and one day for intracity cheques.
In addition, the system processed an average volume of 40 lakh cheques in a day with a record peak of over 55 lakh cheques in a single day last month.
Navroze Dastur, managing director for NCR India, said: “The electronification of paper processing improves the potential for increased efficiencies, enables significant risk reduction and lower transaction costs.”