Cheque Truncation System (CTS)

Process Checks Faster, Reconcile Payments Better

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  • Enhance Customer Experience

    Faster transaction cycles and seamless communication ensure best in class customer services and a strong brand identity.

  • Reduce

    Industry accepted security standards with system guided, accurate reconciliations reduces the chances of fraud significantly.

  • Ensure Resource Optimization

    Automation of clearing process with all subsequent approval and rejection cycles leads to a highly productive staff.

Brochure: Cheque Truncation System

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Newgen Check Truncation System (CTS)

Insurance New Business Acquisition Process

There is a sweeping change in the way paper checks are being processed, cleared, and settled today. The most critical of these changes is the point-of-entry capture of check images, as far upstream in the process as possible. This is largely driven by the need for faster transactions fueled by a demanding customer base.

Newgen Check Image Clearing System (CICS) or Check Truncation System (CTS) reduces the time taken to clear checks by converting physical checks into high quality images very early on in the process. CTS is a web-based solution, enabling bank’s personnel to access the solution from any machine in the bank’s network. The check image is truncated at the presenting bank and seamlessly moves through various steps in the check-clearing cycle. Leveraging Newgen’s advanced imaging capabilities and internationally acclaimed BPM platform, the solution enables better customer services and enhanced operational efficiency for banks by cutting down on the overheads involved in physical clearing. It also leads to better reconciliation and prevention of fraud.

Extensions of Newgen CTS

  • Corporate Cheque Clearing System

    Corporate Cheque Clearing System

    Corporates in sectors such as insurance, telecom, media, retail and utilities face the prospect of delayed collections and realization of their receivables, especially as they expand operations to the remote locations. Newgen’s image based Corporate Cheque Clearing System allows your corporate clients to scan and upload large volumes of cheques from multimple locations including their branch offices.
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  • Mobile Cheque Capture Solution

    Mobile Cheque Capture Solution

    Modern-day banks have digitalized the cheque clearing process at the back end, while dealing with the central bank or other banks. However, the last mile connectivity remains an issue. Newgen Mobile Cheque Capture application, iChequeBox, allows the bank’s customers (retail and corporate) to submit high quality cheque images using their camera-equipped smartphones and initiate real-time processing.
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Newgen Check Truncation System (CTS) automates the following key processes:

  • Outward Clearing: Enables presenting banks to scan physical checks through available check scanner and presenting it to the clearing house after a series of worksteps
  • Inward Clearing: Replaces physical instruments coming from the clearing house with scanned images for further processing. Integrated solution for relationship managers to work on-the-move via web referral processing
  • Outward Return: Handles images for returned/bounced checks at the drawee branch
  • Inward Return: Handles images for returned/bounced checks at the presenting branch

Feature Highlights:

Industry Accepted Security Standards

  • World-class encryption and cryptographic standards ensuring secure and reliable storage and transmission
  • Four eye transaction model to ensure optimal security across all decision making processes
  • Support for smart cards, HSM cards
  • Support for digital signatures for non-repudiation and legal validity

Straight Through Processing

  • Enhanced automation and standardization
  • Automated handoffs between multiple systems with minimal manual intervention
  • Leverages third party tools for critical actions such as account verification, signature verification, financial posting and reverse posting among others

Integration Capability

  • Tightly integrated solution enabling several application to work simultaneously on same environment
  • Seamless integration through APIs and/or hand-off file generation with existing systems such as:
    • Clearing systems of banks
    • Core banking systems
    • Check Scanners
    • Check Deposit Kiosk
    • Signature Management System
    • Automatic Signature Verification System

Monitoring and Tracking

  • Comprehensive audit trail maintenance
  • Real-time monitoring facility to ensure smooth operations
  • Dashboard and effective tracking models

Other Value-Adds

  • Web-based referral system to ensure customer centric responses
  • Integrated Image Quality Analysis
  • Ability to route to different applications from a single application
  • Extendable to Newgen’s indigenous ICR/OCR engine for auto-extraction and matching of amount in figures and in words
  • Automatic Signature Verification
  • Positive pay
  • Corporate Check Scanning

Open Standard Technology

  • J2EE-based open and platform-independent architecture
  • DOD & MoReq standards for records management
  • ANSI standards, X9.37 and X9.90, for exchange of images and data and creation of image-replacement documents

Check Deposit Kiosk

  • Seamless integration with check deposit kiosks to ensure real-time transfer of check images along with corresponding data such as presentment date, MICR read by the built-in MICR Reader
  • Delivers customer convenience by eliminating the need to visit a bank’s branch for depositing checks
  • Delivers convenience to bank by deploying automated scanning procedure

Positive Pay

  • CTS with a Positive Pay process is a fraud prevention mechanism that reconciles checks against details issued by the account holder to identify potentially fraudulent activities
  • In case of mismatch, an exception will be generated and the checks will not be honored or will be returned
  • Used by corporate houses that handle a huge volume of checks as part of their daily business activities

OmniDocs & Records Management System (RMS)

  • Check archival and retrieval system for storage of images and data at a central location, with ability to deploy remote image servers at multiple locations for faster access
  • Available as an add-on component for managing complete lifecycle of physical and electronic documents as per the bank’s policies

Benefits of Newgen Cheque Truncation Solution

  • Parametric and feature rich application
  • Usage of international formats and standards
  • Online dispute resolution and management
  • Supports financial inclusion by providing support for Aadhaar Based transactions
  • Flexible MIS and Analytics capabilities
  • Scalable product architecture
  • Complete Process Control
    • Online enterprise wide clearing dashboards and real-time execution status
    • Audit Trails
    • Identification of bottlenecks
  • Extendable to Payments Hub to include other payments like CTS, SWIFT, PDC, etc.

Request A Demo of CTS Automation Software

Payments and settlement process is critical in ensuring the efficiency of the financial infrastructure. This helps in promoting financial sector development, improving the effectiveness of the monetary policy, and reducing the country’s risk profile.

Paper checks are undergoing a sweeping change in the way they are processed, cleared, and settled. Image-based Check Clearing System or Check Truncation System (CTS) is a project for faster clearing of checks undertaken by Central banks of many countries such as India’s Reserve Bank of India (RBI), UAE’s Central bank, Saudi Arabia’s Saudi Arabia Monitoring Agency (SAMA), etc.

CTS promises to bring multiple benefits to customers such as:

  • Substantially reducing the time taken to clear the checks.
  • For banks, CTS enables better customer services and increase in operational efficiency by cutting down on overheads in physical clearing.
  • Better reconciliation and fraud prevention.