The Star Wednesday April 9, 2008
Fast cheque transaction
KUALA LUMPUR: Malaysians can expect faster cheque clearance when banks implement a new system next year.
Called the Cheque Truncation and Conversion System (CTCS), the system will allow all cheques, local and outstation, to be cleared within the same day.
Currently, outstation cheques need five to eight business days to clear.
Bank Negara Malaysia deputy governor Datuk Zamani Abdul Ghani said all cheques would be considered local cheques and the funds would be received the next business day.
“At the latest, funds for outstation cheques will be available by the third business day,” he told a press conference here yesterday.
As such, the inland exchange commission will no longer be applicable.
Zamani said that for cheque truncation exercise, the system would allow for the electronic capture and transmission of cheque images and data between banks and clearing house, instead of having the cheques physically moved around.
Cheque conversion allows data in the magnetic ink character recognition (MICR) code in the cheques to be converted into payment instructions to effect the transfer of funds.
Cheque truncation is scheduled to go live on May 23 and cheque conversion in August. It will first be implemented in the Klang Valley.
The system will then be extended to Penang and Johor Baru by October and the East Coast states and East Malaysia by January next year.
While banks have been issuing only CTCS designed cheques to account holders since July 1, last year, non-CTCS designed cheques will still be accepted until they are phased out.
Zamani said cheque size had been standardised to 8.9cm by 17.7cm to facilitate cheque truncation.
“Customers also need not complete pay-in slips when depositing cheques, as they will have to complete the pay-in details on the reverse of the cheque,” he said, adding they should write their cheques with a blue or black ink to enhance the quality of the image captured.
As for unpaid or returned cheques, an Image Return Document (IRD) will be used in place of the original cheques.
“This system helps reduce the risk of fraud or thefts as cheques are most vulnerable when they are moved around,” he said, adding that there were 447 cases of cheque frauds last year, mostly involving forged or stolen cheques.
He also said that no alterations should be made on the cheques or the IRD.
“Rubber stamps, chops, seals or staples should not be used on the cheques, as company name and registration number would be printed on the cheque itself,” he said.
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