| CHEQUE IMAGING & TRUNCATION (CIT) |
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| Why is there a single size for personal and corporate cheques within CIT? |
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| With the implementation of the Cheque Truncation System, all cheques will be transmitted by image, hence rendering the need to have different sizes for personnel and corporate cheques irrelevant. Without the imaging technology, the difference in sizes was critical in the cheque verification process. |
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| Why do you then call it “truncated”? |
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| Going forward, collecting banks will not be required to physically send cheques to the National Cheque Clearing House (LankaClear), cheques could be retained by the presenting bank and data and images transmitted electronically to the paying bank via LankaClear |
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| What are the main changes in the CIT cheque? |
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| Changes are new/revised payment instruments: |
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New standard sizes for both personal and corporate cheque accounts
(Refer to Image Friendly Cheque specification) |
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Cheque Return Notification(CRN) |
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| How do I tell the difference between an old cheque and a new CIT cheque as I don’t even have a checking account? |
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| You can identify the new cheque by its size and date box. |
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How does CIT affect me? What changes do I need to take note of with
regard? to cheque writing, deposits? |
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You will be required to use an Image Friendly Cheque and to write with a dark colored ink (blue or black ink is recommended) to ensure that the image of the cheques can be captured.
There will be no change to the process with regards to availability of funds and the way customers conduct cheque deposits as the traditional form of cheque clearing will not be replaced. But to minimize risks associated with retail payments and strengthen processing efficiency, the process in handling cheque returns with CRN and if representable, it can only be done once to the original Bank. |
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| Can the new cheques be written in Sinhala characters? |
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| Yes |
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| Can I use rubber stamps for “account payee”? |
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| No. To ensure that all elements of the cheque are captured during the scanning process do not place stamps across the face of the cheque as the payee, cheque amount and signature must be fully legible on the image as well. |
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| Can I use rubber stamps for the “date” columns? |
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| Yes, as long as it does not interfere with the lines in the box. |
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| But what’s in it for me? What are the benefits to me as a customer? |
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The CIT provides seamless integration to existing Banking technology to enable instant retrieval of clearing information and the seamlessness provides a more secure and efficient way to process cheques.
The greatest benefit to the customer is that you realize the funds the following day, independent of the location or a Bank branch the cheque was deposited. |
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| CUT – OFF DATE |
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Why must I stop issuing cheques from 1 January 2006 when the system is only implemented in April 2006? |
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The CIT process is phased to ensure that customers familiarize
themselves with the new cheques and procedures and to reduce the possibility of valid cheques being rejected once the CITS is implemented, bearing in mind that cheques have a validity of six months. |
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| When is the cut-off date? |
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| 1st April 2005 |
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| Is there a grace period for me to use up my old cheques? |
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| No, the grace period expired on 1st April 2005 |
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| What happens if I receive an old cheque after the cut-off date? |
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| You are advised to ask the issuer to replace the old cheque with a new Image Friendly cheque. |
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| What happens if I bank/deposit an old cheque after the cut–off date? |
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| LankaClear may not accept the cheque or paying bank could advise their customer to ask the issuer to replace the old cheque. |
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| SECURITY |
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| How can customers be assured of security, now that an optical image is used in the clearing process? |
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Security is of paramount importance to CIT system and the banking industry. The captured cheque image is electronically transmitted for cheque clearing.
Furthermore, the new cheques and the CRN is controlled with security paper |
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| OVERSEAS/FOREIGN CHEQUES |
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| How will overseas / foreign cheques be treated? |
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| There will be no changes to the clearing process if the cheques are issued in US Dollars as they will be cleared on manual clearing basis (same as current practice). |
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