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Category Archives: CTS – 2010
Value added services with CTS
Value added services with CTS
- Integrating the image archive to interface with the Internet banking application can allow the retail customers of the Bank to view their paid cheques over the Web and print the same for their records. This provides the bank with an opportunity to generate additional revenue by charging a fee to the customers availing this service.
- The Banks’ can install a cheque deposit kiosk which can provide the customer with a receipt containing both the image of the cheque deposited as well as the details entered by the customer on the cheque.
- The above value added service can also be thought of being provided through the ATM.
- The Bank can also have an interface with the SMS service of the cellular phone providers. Using this service the bank can automatically send SMS messages to their customers advising them of cheques being identified for return in the day’s clearing. This service can be provided in a real-time scenario and would ensure that lesser cheques are returned via clearing.
- The other benefit can be that the Bank can increase the time for the cheque collection process as the activities of cheque truncation and imaging will take much lesser time than manual process. This would facilitate sending the cheques deposited for clearing even after the stipulated time.
Cheque Bounce may no longer put you in Jail
The government will soon make an amendment in the Negotiable Instruments (NI) Act for cheque bounce that will restrict banks from dragging a person to court. All such cases, after the changes come into effect, will have to be decided only through arbitration, conciliation or settlement by Lok Adalats.
It is estimated that more than 30% of all the pending cases in courts across the country are either related to cheque bounce or traffic challans. The proposed amendment in the NI Act has been recently suggested by an inter-ministerial group (IMG), which was set up last year to make suggestions for necessary policy and legislative changes to deal with a large number of cases pending in various courts.
The law ministry is working closely with the finance ministry and the surface transport ministry to make suitable changes in the law and cases falling under both categories (cheque bounce and traffic challans) will be ineligible to be taken to courts unless some other criminal intent is alleged.
The changes in the NI Act will make it compulsory for the disputing parties to resolve the matter through alternate dispute resolution mechanism.
“The use of alternate dispute resolution mechanism on the lines of Section 89 of the Code of Civil Procedure, through arbitration; conciliation; judicial settlement including settlement through Lok Adalat of mediation may be made compulsory in cheque bounce cases by making suitable amendments in the negotiable instruments act,” the IMG recommendation said.
The IMG report, being implemented by the finance ministry, said a summary procedure for dealing with cheque bounce cases as a schedule of procedure may be codified, and developed by the department of financial services. The same may suitably be incorporated in the Negotiable Instruments Act, it added.