Q. With reference to the cheque truncation in India which of the following statements is/are correct?
Select the correct answer using the code given below:
Q. With reference to the cheque truncation in India which of the following statements is/are correct?
Select the correct answer using the code given below:
The correct option is A 1 only
Explanation:
Statement 1 is correct: Cheque Truncation speeds up the process of collection of cheques resulting in better service to customers, reduces the scope of loss of instruments in transit, lowers the cost of collection of cheques, and removes reconciliation-related and logistics-related problems, thus benefiting the system as a whole.
Statement 2 is incorrect: Cheque truncation obviates the need to move the physical instruments across bank branches.
Statement 3 is incorrect: An electronic image of the cheque is transmitted to the paying branch through the clearinghouse, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.
Explanation:
Statement 1 is correct: Cheque Truncation speeds up the process of collection of cheques resulting in better service to customers, reduces the scope of loss of instruments in transit, lowers the cost of collection of cheques, and removes reconciliation-related and logistics-related problems, thus benefiting the system as a whole.
Statement 2 is incorrect: Cheque truncation obviates the need to move the physical instruments across bank branches.
Statement 3 is incorrect: An electronic image of the cheque is transmitted to the paying branch through the clearinghouse, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.
