What is Cheque Truncation

With the advent of new technology and interent many things have become simple and easy and one is them is cheque truncation, Cheque truncation is the process by which the clearing of cheques speeds up. Under Cheque truncation method the physical instrument that is cheque is not needed, instead of that cheque an electronic image of that cheque is send out to the drawee (person who has to make payment) branch which helps in reducing the time for clearing of cheque.

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