Banking in Thanjavur is poised to evolve further with the migration from manual clearing of instruments to the CTS 2010 format from Monday. However, the traders are apprehensive of some teething troubles. The new system has come a tad late to Thanjavur.
The ordinary cheques will make way for CTS 2010 formatted cheques. In Thanjavur, the State Bank of India (SBI) Main Branch has been acting as the clearing house thus far. The Reserve Bank of India had directed the migration that involves digital screening of the banking instruments such as cheques and demand drafts to facilitate efficient management of clearing operations, maintaining clearing timings, effective follow up, and most importantly prevention of malpractice, according to SBI Assistant General Manager Arunachalam Ganesan.
For smooth changeover, all banks and account-holders had been given intimation. The greatest advantage of the CTS was that there was no need for physical movement of financial instruments as they would primarily be transmitted in digitalised fashion, Mr. Ganesan told The Hindu . Also banks could accept instruments for the day’s clearing up to 4 p.m.
Welcoming the migration, some customers here fear teething trouble in implementing the programme. Some bank branches were not having the required infrastructure to host the programme and their clients would suffer for the time being. Another issue was that any marginal error such as a longer stroke in a signature while issuing instruments could land people in trouble as they might be rejected, said S. Prakash, an entrepreneur in Thanjavur. However, more inquisitive customers such as the former president of the District Chamber of Commerce and Industry K. Padmanabhan hopes that manual intervention in cases of marginal errors could cushion the problem. Thanjavur region is entering the CTS format rather late as only Gudalur region is said to be among the last centres not to enter the system so far. Many areas had migrated to CTS at least five years ago.
The transaction of financial instruments will be in digital format
Banks will be able to accept cheques and drafts till 4 p.m. for day’s clearing
