Abstract
In the five decades since independence, banking in India has evolved through four different phases. The Indian banking industry is in the midst of an IT revolution. Combinations of regulatory and competitive reasons have led to the automation of the Banking Industry. The Reserve Bank of India has made numerous reforms for a safe and efficient electronic mode of payment, along with improved efficiency in the paper based mode of payments. In order to foster faster cheque processing the Central bank has implemented Cheque Truncation system in India on a test basis in the National Capital Region, in February 2008. Amendments to the Negotiable Instruments Act and the Informational Technology Act have been made to facilitate the smooth functioning of the new technology. The introduction of the new technology does not change the method of writing the cheques. Government Departments may have to re-engineer their Codes and Manuals governing settlement of their cheques through legally valid electronic images instead of physical cheques. India Countries such as Singapore have 4,000,000 instruments daily. Our country is performing very unique because it has a very large cheque volume. In India processes about 1.2 billion instruments annually. The National Capital Region alone processes 6,000,000 cheques in a day.
Published Version
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