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SCUF—News Letter—Breeze— April, 2013

“ Make Things Happen “

Special points of interest:

11.04.2013 ; 14.04.2013; 24.04.2013

Padma Bhushan Award on 05.04.2013

A brief on Ugadi in Telgu

Inside this issue:

Q & A on CTS 2010 2

Festival Greetings 3

Padma Bhushan Award 4

Greetings from TED 5

Ugadi - A brief 6

1st April, 2013

Thisai: North

Thendral: 01

SHRIRAMCity

The new financial year is a great time for financial houses

to review the year that was

and fresh up the slate for the year ahead.

41st Issue of Breeze

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SCUF—News Letter—Breeze— April, 2013

8. What are the benefits of CTS to

customers of banks?

The benefits are many. With the introduction of imaging and truncation, the physical movement of instruments is stopped. The electronic movement of images of cheques speeds up the process of settlement and can facilitate reduction in the clearing cycles as well. Moreover, there is no fear of loss of instruments in transit. Further, limitations of the existing clearing system in terms of geography or jurisdiction can be removed, thus enabling consolidation and integration of multiple clearing locations managed by different banks with varying service levels into a nation-wide standard clearing system

with uniform processes and practices.

CTS also benefits issuers of cheques. Use of images obviates the need to handle and move physical cheques at different points. The scope for frauds inherent in paper instruments is, thus, greatly reduced. The Corporate if needed can be provided with images of cheques by their bankers for internal requirements, if any. As only the images move, the time taken for receipt of paid cheques is reduced which also gives an early opportunity to the issuers of cheques to detect frauds or alterations, if any, in terms of what (and to whom it) was issued

and what (by whom it) was realised.

CTS bring elegance to the entire activity of cheque processing and clearing. Cheque frauds can be greatly reduced with introduction of minimum security features prescribed under CTS Standards 2010, such as embedded verifiable features such as bar-codes, encrypted codes, logos, watermarks, holograms, etc., for early interception of altered / forged instruments. Obviating the need to move the physical cheques is extremely beneficial in terms of cost

and time savings.

The benefits from CTS could be sum-

marized as follows : –

Shorter clearing cycle

Superior verification and

reconciliation process

No geographical restrictions as

to jurisdiction

Operational efficiency for banks

and customers alike

Reduction in operational risk and risks associated with paper

clearing

9. If a customer desires to see the physical cheque issued by him for any reason, what are the options

available?

Under CTS the physical cheques are retained at the presenting bank level and do not move to the paying banks. In case a customer desires, banks can provide images of cheques duly authenticated. In case, however, a customer desires to see / get the physical cheque, it would need to be sourced from the presenting bank, for which a request should be made to his/her bank. An element of cost / charge may also be involved for the purpose. To meet legal requirements, the presenting banks which truncate the cheques need to preserve the physical instruments

for a period of 10 years.

10. How would be the uniqueness of a physical cheque be captured and

imparted to the cheque image?

CTS in India mandates the use of prescribed image specifications only. Images that do not meet the specifications are rejected. As the payments are made on the basis of the images, it is essential to ensure the quality of the images. To ensure only images of requisite quality move in the CTS processing cycle,

there is a rigorous quality check process at the level of the Capture Systems and the Clearing House Interface (of the presenting bank). The solution encompasses Image Quality Assessment (IQA) at different levels. The presenting bank is required to perform the IQA during the capture itself. Further IQA is done at the gateway before onward transmission to clearing house. The images are captured with digital signatures of the presenting bank and thereafter transmitted to the Clearing House and then to the paying banks. Further, the paying banks, if not satisfied with the image quality or for any other reason, can ask for the physical instrument to facilitate payment

processing.

Further, the new cheque standard "CTS-2010" prescribes certain mandatory and optional security features to be available on cheques, which will also add to the

uniqueness of the images.

………in next issue.

The source of this article is from RBI Website

www.rbi.org.in under FAQ’s

By

R SANKER Internal Audit

Shriram City Union Finance Ltd

221, Royapettah High Road, Mylapore, Chennai 600 004

Cheque Truncation System (CTS) Contd…….

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SCUF—News Letter—Breeze— April, 2013

Greetings

11.04.2013

14.04.2013

14.04.2013

24.04.2013

4

SCUF—News Letter—Breeze— April, 2013

Padma Bhushan Sri R.Thyagarajan, Group Founder Chairman

Our Group Founder Chairman

Shri R.Thyagarajan

is receiving the

“ Padma Bhushan ”

award from

“Rashtrapathi”

Sri Pranab Muharjee,

on 5th April, 2013

at New Delhi.

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SCUF—News Letter—Breeze— April, 2013

Message from TED

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SCUF—News Letter—Breeze— April, 2013

Ugadi, also known as Yugadi, is a Hindu festival celebrated by the people of

Karnataka and Andhra Pradesh with much vigor. Yuga means new era and Adi

means beginning; together it means beginning of a new era. The festival falls on

“Chaitra suddha padhyami” which is the first day of “Chaitra” the first month of

the traditional Hindu calendar. People believe that Lord Brahma, began his

auspicious creation and created the Earth on this day.

On the day of Ugadi, people, take an extensive ritualistic shower or oil bath followed

by prayers to the goddess of Spring for good health and prosperity in the coming

year. Then as the day moves on, people decorate their houses with mango leaves and

rangolis. Ugadi Pachhadi a unique dish of a specific mixture with six different tastes

by using Raw mango, Neem flowers, Jaggery, shredded coconut, Tamarind,

Banana, Chilly powder, Salt is also prepared. The dish symbolizes different

experiences ranging from sweet to bitter and that everyone should learn from these

experiences and continue with life's journey. Later in the day, the event of

"panchanga sravanam" (New year calendar) narrating the way the new year would

shape up in the lives of people and the State in general, is organized in many temples

and cultural and religious gatherings. All the day people will delight with new

dresses, spending with relatives, and special dishes.

Mail your

views, reviews, feed-back,

suggestions and

comments to

efchennai@shriramcity.in

Our members of staff are requested to contribute to our News Letter “Breeze” by way of articles, photos, art work done by them, tips, messg. on special events at their work place, and such other matter of i n t e r e s t f o r

publication.

From Editorial Desk:

Communication Address:

Editorial Committee, (News Letter—Breeze)

ShriramCity Santhome Office, Chennai—600 004 Phone: 43925300

Email: efchennai@shriramcity.in

Editorial Committee

Shri K.Subramaniam Senior Consultant, HO.

Smt M.Subhashree TED., Santhome Office

Sri M.Radhakrishnan

Consultant, Santhome Office

Our News Letter

“Breeze”

can be accessed in

the

following URL:

http://27.251.33.232

ఉగాది లేక యుగాది అని పిలవబడే ఈ హ ిందూ పిండుగ ఆింధ్రపరదేశ్ మరియు కరాా టక పరజలు చాలా ఆసక్తి తో జరుపుకుింటారు. ఈ పిండుగ వసింత ఋతువులో వస్ి ింది మరియు క్ొతి సింవతసరపు మొదటి రోజున్ సూచిస్ి ింది. చ ైతర మాసపు మొదటి రోజు "చ ైతర శుదధ పాడయమి "న ఈ పిండుగ జరుపుకుింటారు బరహ్మ తన సృషిి్ మొదలుపెటిిన రోజుగా ఈ రోజుని భావిస్ాి రు

ఉగాది రోజున,పరజలింతా త లల వారు జామునే అభ్యింగన స్ాానిం చేసి, నూతన సింవతసరింలో ఆయురారోగాయలతో స్ఖసింతోషాలతో ఉిండాలని వసింత లక్ష్మమని పూజిస్ాి రు. ఇలల ింతా మామిడమ తోరణములతో, రింగవలుల లతో అలింకరిస్ాి రు. ఉగాది అనగానే పరతేయకింగా గురుి కువచేేది ఉగాది పచ్ేడమ. షడుర చ్్ల సమ్మమళనమ్ ైన ఈ ఉగాది పచ్ేడమ జీవితింలో వచేే

కషిస్ఖాలకు పరతీక. వేప పువుు, బెలల ింపొ డమ, క్ొబబరిక్ోరు, అరటి పిండుల ,మామిడమక్ాయ ముకకలు,క్ారిం , ఉపుు కలిపి ఈ ఉగాది పచ్ేడమ తయారు

చేస్ాి రు. స్ాయింతరిం, క్ొతి సింవతసరింలో వారి వారి గరహ్ సిితులు, రాషిర, దేశ గరహ్ సిితులన్ "పించాింగ శరవణిం" దాురా త లుస్కుింటారు. రోజింతా క్ొతి బటిలు,బింధ్్వులు, పిిండమవింటలతో సరదాగా గడుపుతారు.

Ugadi - a brief in Telugu with translation in English by

Ms. Y.Prema Harshita, Senior Manager, Risk Management, HO, Chennai.