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Benefits of Cheque Truncation System. Time, money and manpower expended on physical transfer of cheques from banks to clearing house are eliminated; Clearing related frauds become less plausible; Probability of cheques misplaced in transit is eliminated; CTS is more advanced and more secure. It provides quicker clearance of cheques
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Mar 8, 2019 · One of the primary benefits of the Cheque Truncation System is its ability to accelerate the cheque clearance process. Instead of taking days, the CTS enables clearance within a few hours, allowing payees and drawers to access funds more quickly.
It offers better reconciliation/ verification, better customer service and enhanced customer window. Operational efficiency provides a direct boost to bottom lines of banks as clearing of local cheques is a high cost low revenue activity. Besides, it reduces operational risk by securing the transmission route.
Oct 22, 2012 · What are the benefits of Cheque Truncation? It Eliminates the time, money and manpower wasted during physical movement of cheques (from banks to clearing house). Thus, Cheque Truncation =faster clearing = better service to customers, Cheque Truncation system reduces the scope for clearing-related frauds; There is no fear of losing cheque in ...
Check Processing. Check Truncation: What Is It and How Does It Work? Date Updated: Jul 13 2022. TABLE OF CONTENTS. What Is Check Truncation? How Does the Process of Check Truncation Work? Purpose of Check Truncation. Check Truncation Benefits. Laws Governing Check Truncation. Final Thoughts on Check Truncation.
Benefits of Check Truncation Faster Clearing Times. One of the most significant benefits of check truncation is the reduction in clearing times for checks, as electronic images or substitute checks can be transmitted between banks more quickly than physical checks, providing businesses and consumers with faster access to their funds.
Cheque truncation reduces or eliminates the physical movement of paper cheques and reduces the time and cost of cheque clearance. Cheque truncation also offers the potential reduction in settlement periods with the electronic processing of the cheque payment system . History [ edit]