Cheque Truncation System
Request a QuotePayments and settlement process is critical in ensuring the efficiency of the financial infrastructure. This helps in promoting financial sector development, improving the effectiveness of the monetary policy, and reducing the country s risk profile. Paper checks are undergoing a sweeping change in the way they are processed,cleared, and settled. Check Imaging and truncation (the replacement of the paper check by a check image and an electronic data file) is bringing about this change. The most critical of these changes is point-of-entry capture, that is, the capture of the check image as far upstream in the process as possible. Check processing affects all customers of the bank, and is causing a complete revamp of many banking operations. Image-based Check Clearing An Overview Image-based Check Clearing System or Check Truncation System (CTS) is a project for faster clearing of checks undertaken by Central banks of many countries such as India s Reserve Bank of India (RBI), UAE s Central bank, Saudi Arabia s Saudi Arabia Monitoring Agency (SAMA), etc. CTS promises to bring multiple benefits to customers by substantially reducing the time taken to clear the checks. For banks, CTS enables better customer services and increase in operational efficiency by cutting down on overheads in physical clearing. In addition, CTS also offers better reconciliation and fraud prevention. CTS uses check image, instead of the physical check itself, for clearing of the check. The check image is truncated at the presenting bank. Subsequently, the check image moves through various steps in the check-clearing cycle, and transactions are settled on the basis of images and electronic data. Newgen Solution Suite for Image-Based Check ClearingSolution Highlights Manages the processes of check or other instruments clearing cycle by using Imaging and Workflow technologies that includes: Outward Clearing : Scans physical instruments and handles the images of the instruments at the presenting bank s service branch.Inward Clearing : Receives scanned images of the instruments instead of physical instruments from the central bank s system for processing.Outward Return: Handles images for returned/bounced checks at the drawee branch.Inward Return: Handles images for returned/bounced checks at the presenting branch Integration Capability ATMsCheck Deposit kiosks to provide multi-point capture capabilitySeamless integration through APIs and/or hand-off file generation with existingCore Banking System such as FLEXCUBE from i-flex and Finacle from InfosysExisting clearing systems of banksAutomatic signature verification systems Based on Open Standards J2EE-based open and platform-independent architectureDOD & MoReq standards for records managementANSI standards, X9.37 and X9.90, for exchange of images and data and creation of image-replacement documents.