CIT system ensures 50 per cent cheque clearance

Hiran H. Senewiratne

CHEQUE CLEARANCE: The Sri Lanka's cheque transactions have increased by 50 per cent in volumes with the installation of the latest clearing system. The new system is known as Cheque Imaginary and Transaction System (CIT).

Sri Lanka is the first country to adopt this new system nationwide after Singapore, Lanka Clear (Pvt) Ltd, Chief Executive Officer Anura de Silva told the Daily News.

Under this CIT system a person can deposit any cheque from any bank branch in the country and could encash on the following day itself, he said.

He said that this new method does not send the cheque when it returns but provides notification instead of the cheque return.

This has increased the confidence of the people as it has minimise the imbalance in the existing transaction mechanism in the country.

This system was installed in early May at a cost of Rs 680 million. Lanka is the first country to adopt it nationwide. He said that developed countries like USA, UK, have installed state-wise but not nationwide, he said.

It is said that 25 commercial banks and 1300 of their branches are under this system.

Therefore, Lanka Clear (Pvt) Ltd has set up 11 regional branches to collect cheques physically and scan them and deliver to Colombo electronically for clearance purpose, he said.

De Silva said that Singapore is the only country that practices this new technology as a nation while the Sri Lanka is the first country to adopt this concept after them, he said.

Therefore, cheque clearance has increased in the country in volume and we have rectified all technical errors in banks to improve the system, he said.

Further they are also in the process of enhancing the electronic mode of clearance rather than physical clearance in the future.

Lanka Clear (Pvt) operates under the Central Bank of Sri Lanka.