Central Banking

RBI to introduce cheque truncation system

The Reserve Bank of India (RBI) is in the process of introducing a national cheque truncation system (NCTS) under a new entity to speed up the retail payment system in the banking sector.

Disclosing this on Thursday, RBI Deputy Governor V. Leeladhar said as a pilot project, the central bank was implementing cheque truncation in the national capital region (NCR) to quicken realisation and reduce the clearing time from two weeks to two hours.

"Cheques continue to be the dominant retail payment in