The Hindu Business Line : PNB ties up with NCR for faster cheque clearance

The process of cheque truncation reduces the clearing time window in all the clearings, offering significant time benefits to the customers and cost savings to the banks.

New Delhi , March 29

PUNJAB National Bank (PNB) has signed an agreement with NCR Corporation India to enable clearance of inter-city cheques within 48 hours after the cheque is presented at select centres using cheque truncation with image-based cheque clearing system.

The agreement was signed between the Chairman and Managing Director, PNB, Mr S.S. Kohli and the Vice-President and General Manager, Payment Solutions, NCR Corporation, Ms Ruth Fornell.

The facility of intra-bank inter-city cheque truncation project uses ECPIX (Electronic Cheque Presentment with Image Exchange) Technology.

Cheque truncation is a process in which instead of the cheque travelling physically within a bank or between different branches or between the banks and the clearing-house, the electronic record (image) of the cheque is used for further processing and transmission. It will eliminate delays arising out of paper-based processing and transportation of physical cheques. The process of cheque truncation reduces the clearing time window in all the clearings, thereby offering significant time benefits to the bank customers and cost savings to the banks.

After successful pilot run, the system will be introduced by connecting MICR centres located at Lucknow, Nagpur, Jaipur, Kanpur, Ludhiana, Chandigarh, Jalandhar, Agra, Allahabad and Varanasi.

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