The Payment & Settlement System Act No. 28 of 2005 has laid down the procedure for the payment of cheques electronically presented. Cheque Imaging & Truncation System (CITS) is an image-based cheque clearing system, which replaced the physical cheque with electronic information, flowing throughout the clearing cycle. This process eliminated the actual cheque movement in cheque clearing and reduced the delays associated with the physical movement of cheques. CIT system is designed to accept physical cheques or images and MICR data of physical cheques either submitted on CD-ROMs or by direct electronic transfer. Banks generate images of cheques for outward delivery and submit cheque data and images on CD-ROM. As such, the physical movement of cheques is truncated at the point of image capture and hence, the paying Bank will NOT receive a physical cheque during the entire clearing process.