RBI pushes cheque truncation

Financial Express
Banking Bureau , May 11, 2006

The Reserve Bank of India (RBI) has expressed its concern on low level of preparedness of the banking community for the cheque truncation project. Few major banks have still not finalised the vendors for the cheque truncation project. It is also expected that the apex bank may commence the phased implementation of the cheque truncation project before the stipulated deadline of December 31, 2006, with the banks who are ready for it.

RBI is also working on an arrangement for three concurrent sessions of the cheque truncation project for clearing of high value cheques, local clearing of cheques and inter-city clearing of cheques, with an ability to close these sessions at any point of time. The cheque truncation project is a national clearing module which is expected to expedite the process of inter-city cheque transfers for the banking sector.

Speaking at Banknet India's CTO summit, V Babu, deputy general manager - information technology, Bank of India said, "We are planning to put in place a cost effective alternative to the core banking solution (CBS) for the remaining 1,700 branches of our bank, which are not covered by the CBS platform. The new solution would encompass total branch automation, covering risk management, too.

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