ayment and Settlement Systems - Vision 2009-12 Part 2

Payment and Settlement Systems - Vision 2009-12

Annual Policy Statement for the Year 2010-11

Part 2

I wish I had the time, to analyze the Annual Policy Statement for the Year 2010-11 in detail. But time and the vast subject the Statement encompasses does not permit me to do so.

So, I will try to highlights those points, which touch my heart.

In this Blog I will be concentrating on the Payments and Settlements part of the Reserve Bank of India’s Annual Policy Statement for the Year 2010-11

The policy statement relies on the Reserve Bank’s of India’s Payment and Settlement Systems  - Vision 2009-12

Policy Stance

Standardization of Security Features on Cheque Forms

What is there in it?

Cheque Truncation System (CTS)–2010 Standard with benchmark specifications for security features on cheque and field placements on cheque forms have been prescribed.

Why is this required?

Like it or do not like it, Cheques in India still play a dominant role in the funds movement. This phenomenon will last for another half-a-century. Therefore Reserve Bank of India, decided to Standardize the  Security features on cheque forms to aid n          faster processing of the cheques n          minimize fraudulent activities

How it will impact?

n          Please visit my earlier post on the Standardization of security features on cheque forms n          http://prashantnepayments.blogspot.com/search/label/Void%20%20Pantograph n          Increase automated processing thereby reducing the dependency on human. n          Increase automated processing means less turnover time for the ultimate credit to be effected to the customer. n          In the next couple of years, the reach of  CTS will be widened. To me the best benefit of CTS is its ability to transform the Post-Dated Cheques (PDC’s) process. PDC’s can be debit to the customers account i.e Loans or credit to the customer’s account i.e Dividend Payouts, Insurance Policy maturity amounts. The Truncated cheque images for future date can be stored for automatic processing on the due dates.