Cheque Truncation

Cheque Truncation – QuadQuick CTS

Considered to be a major milestone in the history of Indian banking, Cheque Truncation System aims to make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby trimming down the floating time considerably.

India processes as many as 1.2 billion cheques annually and, therefore, the implementation of this system would drastically cut down the waiting period involved.

How does it work?

This is an online image-based cheque clearing system wherein the collecting bank branch would deploy scanned images along with the magnetic ink character of the cheque which will be sent out electronically using their Capture System.

The captured images and the data are then signed and encrypted and sent to the clearing house or the central processing location and, thereafter, forwarded to the drawee or paying bank.This helps speed up the cheque collection process.

Key Features of Cheque Truncation System

  • User friendly graphic user interface
  • Automated coding and endorsing of cheques
  • Encryption of data file before transmission to the clearing house or the service branch
  • Employs a unique transaction follower process to confirm the status of cheque
  • Improved and efficient settlement and prevention of fraud
  • Equipped with enhanced archival procedure that stores images and data facilitating report generation along with future enquiry
  • Alerts RMs in case of return of cheque due to insufficient funds

Benefits of CTS for customers

There are many benefits of the cheque truncation system from the perspective of a customer.

  • Clearance cycle gets shortened -- As this system is being implemented, the physical or manual movement of cheques for clearance is being ceased.
  • With cheques being transmitted electronically, the settlement process becomes quicker, facilitating reduction in the clearance cycle.
  • The fear of loss of cheques during transfer from the collecting bank to the drawee or payee bank is eliminated.
  • Limitations of the current clearance system with respect to jurisdiction and geography are eradicated.
  • This enables integration and consolidation of several clearing locations across various banks offering different service levels into one standard clearance system applicable throughout the country.
  • CTS helps reduce the scope of fraud significantly.
  • Moreover, the electronic transmission is quick and allows early detection of fraud or any alteration with respect to the payee, amount or the issuer of the cheque.
  • CTS prescribe minimum security features under 'CTS-2010 standards' along with superior verification process that further facilitates in the reduction of frauds.
  • The operational efficiency of both the bank as well as the customer is enhanced with the introduction of this system.

QuadQuick CTS is a product devised to help small and medium sized as well as Co-operative Banks for participation in CTS clearing. Our USP is that QuadQuick CTS is being provided on SAAS platform and we do not charge anything for the s/w application but provide the application on usage based charges basis to member banks. Our solution works off-line and the files can be transferred using ordinary or regular internet connectivity to respective CHI gateways.

Quadpro is in the process of setting up CTS Facilitation Centers in every taluka and district of South India and these Image Service Bureau - ISB's will be instrumental in connecting all our consortium member banks to NPCI Southern Grid at Chennai.

  • Quadpro ventures into eCommerce, web applications and dynamic website development and maintenance services.
  • Quadpro opened offices in Mumbai to provide CTS and DMS services to banks.
  • Quadpro supported National Co-op Bank Ltd. to become FIRST co-op bank in Bangalore to have participated in CTS clearing on 11/01/2013
  • National Co-op Bank Ltd. forms a consortium of co-op Banks in Bangalore as a Lead Bank for participation in CTS clearing and Quadpro provide support for operational functioning of the consortium.
  • Quadpro will be shortly starting CTS Facilitation Centers/Image Service Bereaus across South India to facilitate Cheque Truncation Services of Small and Medium Banks