Punjab National Bank (PNB) has contracted with NCR for the implementation of the first image-based cheque clearing system in India.
The banks says NCR's ECPIX cheque truncation system will provide clearance of intercity cheques within 48 hours after the cheque is presented.
After a successful pilot run the system is to be extended by connecting selected MICR centres at Lucknow, Nagpur, Jaipur, Kanpur, Ludhiana, Chandigarh, Jalandhar, Agra, Allahabad and Varansi.
PNB chairman and managing director S S Kohli says benefits of ECPIX will be seen in the back-office as well as at the customer interface.
"On the one hand, it will streamline cheque handling and speed up the clearing process to give our customers faster access to their cash," he says. "On the other hand, it will enable critical savings for the bank at a time when they are under pressure to reduce their processing costs."