A recent press report said that Oriental Bank of Commerce has opened a cheque truncation centre in Chennai which is the first ever bank to open up cheque truncation in Chennai.
Cheque truncation is a system where the cheque that has to be encashed is scanned and the scanned image of the cheque is sent to the respective branch where the payer has the account. At present the cheque leaf is physically transmitted to the respective branch and it will take at least a day’s time to be encashed.
This cheque truncation system was installed in Delhi for a pilot study under the order of the Reserve Bank of India a few years ago. Next to Delhi the cheque truncation system is now launched in Chennai according to the regulator’s instructions.
There are many cities with cheque truncation facilities and it is planned to establish this system across the whole countries in near future. This system if established throughout the country would promote effective payment and settlement system.
Oriental Bank of Commerce will have three nodal branches, including the one in Kanchipuram which will have the facilities for scanning. The cheques brought for encashment to other branches will be taken to these nodal branches by the employees of the bank and scanned and then send for further processing into cash.
Oriental Bank of Commerce as a festival offer has introduced special loan schemes to its customers.