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 bettering, dashing up and fool-proofing the funds and settlement techniques, the Reserve Bank on Friday mentioned all of the 18,000-odd branches that are outdoors the centralised clearing system known as cheque truncation system will come beneath 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 outdoors any formal clearing association, to herald 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 carry all such branches beneath CTS by September, RBI mentioned in an announcement.

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

The central financial institution additionally mentioned it can arrange a 24×7 helpline for digital funds companies to safe them extra in opposition to fraud and phishing.

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

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

That aside, the RBI mentioned, it can quickly subject outsourcing tips for operators and members 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 certain that a code of conduct is adhered to whereas outsourcing funds and settlement associated companies, the Reserve Bank will subject tips to the operators and members of authorised cost techniques shortly.

Towards higher shopper safety measures, the RBI mentioned it can 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 workplaces of the RBI.

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

To make the alternate dispute redress mechanism less complicated and extra conscious of prospects, it has been determined to combine the three ombudsman schemes and undertake a ‘one nation one ombudsman’ method. The built-in ombudsman scheme will probably be rolled out in June. 

Also Read: RBI retains repo price unchanged at 4%, initiatives 10.5% GDP progress in FY22
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