RBI's cheque truncation system by April 2006

The cheque truncation process, which involves online transmission of credit instantaneously, would be introduced by April 2006, announced V Leeladhar, deputy governor of Reserve Bank of India (RBI) here on Saturday.

He was speaking at the founder's day celebrations of the centenary year of Canara Bank. This facility would solve the problem of undue delay in the encashment of cheques as there would be no physical movement of cheques and usher in a revolution in banking transactions in the country, he said.

Regretting that the number of accounts in banks were a small fraction of the entire population, he stressed the need for banks to reach out to the common man.

He also wanted awareness to be created among customers of the facilities provided by banks like Real Time Gross Settlement (RTGS) to avoid conventional procedures.

D Veerendra Heggade, dharmadhikari, Shri Kshetra Dharmasthala, who was the guest of honour, underlined the need to do business with service where service is not a favour but one's duty.

Canara Bank chairman M B N Rao, in his introductory address disclosed that the Bank has set a target of netting a profit of Rs 1,300 crore during the present fiscal year and already its deposits had crossed Rs one lakh crore.