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RBI says all 18,000 banks to have Cheque Truncation System by September

RBI says all 18,000 banks to have Cheque Truncation System by September
Image Source : ANI

RBI says All 18,000 banks to have Cheque Truncation System by September

As a part of additional enhancing, rushing up and fool-proofing the funds and settlement techniques, the Reserve Bank on Friday stated all the 18,000-odd branches that are exterior the centralised clearing system referred to as cheque truncation system will come underneath it by September.

The cheque truncation system (CTS) is in use since 2010 and covers round 1,50,000 financial institution branches throughout three cheque processing grids. All the erstwhile 1,219 non-CTS clearing homes have since been migrated to the CTS now.

Since round 18,000 extra branches are nonetheless exterior any formal clearing association, to usher in operational effectivity in paper-based clearing and make the method of assortment and settlement of cheques sooner leading to higher customer support, it’s proposed to deliver all such branches underneath CTS by September, RBI stated in an announcement.

Separate operational tips might be issued inside a month, it added.

The central financial institution additionally stated it’ll arrange a 24×7 helpline for digital funds providers to safe them extra towards fraud and phishing.

The RBI’s cost techniques imaginative and prescient doc envisages organising a 24×7 helpline for addressing buyer queries in respect of assorted digital funds, which, other than constructing belief and confidence, can even scale back expenditure on each monetary and human sources.

Under this scheme, main funds system operators might be required to have in place a centralised industry-wide 24×7 helpline to tackle buyer queries in respect of assorted digital funds and provides data on out there grievance redressal mechanisms by September.

That aside, the RBI stated, it’ll quickly concern outsourcing tips for operators and individuals of authorised cost techniques.

Various authorised cost techniques actions are outsourced to optimise effectivity and decrease prices. But this additionally will increase system vulnerabilities posing cyber safety dangers.

To handle the attendant dangers in outsourcing and be sure that a code of conduct is adhered to whereas outsourcing funds and settlement associated providers, the Reserve Bank will concern tips to the operators and individuals of authorised cost techniques shortly.

Towards higher shopper safety measures, the RBI stated it’ll combine the three ombudsman scheme– the banking ombudsman scheme; the ombudsman scheme for NBFCs; and the ombudsman scheme for digital transactions in operation from 22 ombudsman places of work of the RBI.

Accordingly, it has already operationalised grievance administration system portal as one cease answer for alternate dispute decision of buyer complaints.

To make the alternate dispute redress mechanism less complicated and extra responsive to clients, it has been determined to combine the three ombudsman schemes and undertake a ‘one nation one ombudsman’ strategy. The built-in ombudsman scheme might be rolled out in June. 

Also Read: RBI keeps repo rate unchanged at 4%, projects 10.5% GDP growth in FY22

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