Syndicate Bank : Cheque Truncation System

Earlier cheques used to physically move to branches, regional offices,
central accounts offices and finally at RBI clearing house for settlement. It
was a time consuming process and also led to delays in clearing operations. Now
instead of physical cheques, images travel from branches to nodal centers and
finally to a central server at the Central Accounts Office which is having
direct connectivity with the RBI system to facilitate immediate clearing. Though
all this sounds easy, it requires a lot of security infrastructure at branch,
communications and finally at the server level. An information security
framework has been designed around this system, consisting of three-tier
security. The first-tier uses digital signatures at branches, second-tier
comprising communications doing encryption and finally the third-tier at the
server for matching check sum. It has benefited the public immensely and now
clearing is faster, secure and occurs within T +1 day. A proper BCP and a DR
site is in place to take care of any eventuality for uninterrupted operations.
For banks it has helped in effective funds management and better customer
service. This ensures faster clearing and immediate credit to customers'
accounts. The CTS Project was implemented with 35 nodal branches in NCR Delhi
catering to a total of 215 branches. At present around 40,000 cheques are
processed using this system.