Truncated Cheque Clearance Procedures - A Case Study (MBA Finance)

MBA Project Type: Finance

Project ID: 1439

Description: Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. Implementation of Cheque Truncation System (CTS) in India by the Reserve Bank of India (RBI), the banking regulator of the country, has proven to be a revolutionary step in the history of digital transformation in Indian banking. CTS replaces the traditional paper-based cheque clearing with the most modern digital mode clearing. CTS is faster, efficient and more transparent. In the context of the ongoing measures of demonetisation (DeMo) and digital transformation in India by the RBI, the scope of study to closer look into the process of CTS in India and suggests steps for more refinements in the system.
Project Report Pages: 64

Can be used in: Finance

Project Cost: Rs 2500 / $ 50

Synopsis Cost: Rs 350 / $ 7

Delivery Time: Within 12 hours.

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