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LankaClear Pvt Ltd recently conducted an awareness session for Officials of Maldives Monetary Authority (MMA) and commercial banks officers in The Maldives on its Cheque Imaging and Truncation System (CITS) and other electronic payments facilitated by the company under LankaPay – National Payment Network. Mr. Roshan Hettiarachchi Head of Clearing Systems and Mr. Isuru Jayaweera, Head of Bank Services of LankaClear conducted the two day workshop which was well received with participation by over 100 attendees.  
Cheque truncation is the process that converts a physical cheque into a substitute electronic form (digital image based) for transmission to the paying bank. This process eliminates cumbersome physical presentation of the cheque, which saves time and processing costs. With the introduction of CITS, Sri Lanka became the 1st in South Asia and 2nd in the world to have rolled out such world-class payment and settlement infrastructure to enable nationwide cheque clearance on T+1 basis where beneficiary could encash a cheque on the next business day. LankaClear celebrated a decade of seamless operation of CITS this year since its launch in 2006.
Operating under the provisions of the Payment and Settlement System Act No. 28 of 2005 that stipulates procedures for automated cheque clearance, the introduction of CITS revolutionized the clearing process moving from physical cheque to an image-based clearing mode. This has brought down the clearing cycle to one working day from a previous three to five day period due to elimination of physical movement the instrument. This has also enabled the banks to offer extended time for their customers to submit cheques, which has provided greater convenience to all banking customers.

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