Lawyersclubindia Article: Check truncation inside the Indian Scenario
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Cheque truncation in the Indian Circumstance
During the last 20 years or so the attitude and lifestyle of the consumers of banking services have been inspired by the improvement in technology. In tune with technological changes the banksГўв‚¬в„ў delivery system has to go through tremendous change. The economic reforms process has allowed many opponents to enter the financial services industry with a larger degree of efficiency and buyer friendly conduct. The public sector banks although reacted immediately to the new challenges, have never kept tempo with the fresh entrants in the arena for their inherent limits. Under the influence of technology, the banking companies have been planning to innovate new products and services to get more competitive in the ever before demanding customer driven market. The technology has made it possible for the banks to visit terms with all the demands of shoppers. The system of cheque truncation is frequent in several international countries. Denmark and Belgium are the leaders in the truncation system. They adopted complete cheque truncation system more than two decades ago. Sweden is definitely the typical case in point for having achieved complete truncation where all the cheques could be presented and encashed any kind of time branch; regardless of the bank which they are attracted. The process of cheque truncation is not only quick but also meets the requirements of future electric transactions. In India the gathering and repayment of cheques is governed by the conditions of the Flexible Instruments Action, 1881 which in turn requires that the instruments should be in writing and still have to be actually presented for payment sooner or later (before the amendment in the Negotiable Devices Act). Taking into consideration this requirement the time taken for the processing of cheques, etc . was long particularly for the outstation cheques. In a country like India, the time taken for variety of outstation...