Truncated cheques
This query is : Resolved
02 November 2011
what is the meaning of truncated cheques and cheques in electonic form???
...
and also explain the sentence-
"a cheque is a bil of exchange drawnon a specified banker and payable on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.....
...
and also explain the sentence-
"a cheque is a bil of exchange drawnon a specified banker and payable on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.....
03 November 2011
Truncated Cheque:
To process payments faster and more efficiently, many banks no longer transport paper checks, but replace them with digital images -- called substitute checks -- that can be transferred electronically, in a system called check truncation.
Suppose you are having a bank account with SBI, Jaipur Branch.
You issue me a cheque for Rs 50000/-
Means you have drawn the cheque on SBI, Jaipur Branch which will pay me on demand, means amount will be paid to me if I present the cheque to the Bank through my banker. If I keep it with me , I will not receive the amount.
Now , when I shall deposit the cheque to my Bank , It will make its electronic image and send this truncated form to the clearing house. Original cheque will not be sent.
To process payments faster and more efficiently, many banks no longer transport paper checks, but replace them with digital images -- called substitute checks -- that can be transferred electronically, in a system called check truncation.
Suppose you are having a bank account with SBI, Jaipur Branch.
You issue me a cheque for Rs 50000/-
Means you have drawn the cheque on SBI, Jaipur Branch which will pay me on demand, means amount will be paid to me if I present the cheque to the Bank through my banker. If I keep it with me , I will not receive the amount.
Now , when I shall deposit the cheque to my Bank , It will make its electronic image and send this truncated form to the clearing house. Original cheque will not be sent.
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