New Delhi: Punjab National Bank, one of the 10 pilot banks to join the Reserve Bank of India’s initiative for implementing cheque truncation system, has operationalized the services in the National Capital Region.
The system has gone live in ten branches of PNB and it is likely to be made live in all the branches in NCR by 31 March, the bank said in a release issued on 8 February.
Other banks that have joined RBI’s initiative are: State Bank of India, Bank of India , Syndicate Bank, Dena Bank, ICICI Bank, HDFC Bank, Standard Chartered Bank, Karur Vysya Bank and Bank of America, a PNB official told Livemint.
Under the system, images of the instrument and the data contained in MICR line will be captured and used for payment of cheques and settlement between banks.
At PNB, a customer depositing a cheque for local collection in the late hours — up to 5:00pm — will be able to use its proceeds next day at 2:00pm, once the return session is over.
Later on, with multiple clearing sessions taking place in a day, the funds may be available to customers on the day of deposit .
Under the present MICR-based clearing, while credit gets afforded to the account of the depositing customer on the second working day, proceeds of a cheque payable locally (intra-city) are generally available to him on the third working day.
Other banks shall be joining shortly and the system shall be replicated at other cities also. Inter city collection / clearance of cheques is also expected to be brought under the cheque truncation system, which will enable reduce collection time significantly.
The official did not comment on when this facility for outstation cheques will become operational.