New Delhi: Indian Banks are considering CTM (cheque truncating machines) that would facilitate instant encashing your cheques at ATMs. This technology is already being widely used making real-time cheque verification and clearance possible. Currently there are about 48000 ATMs in India, pointing to the level of comfort and efficiency this system would give to both customers and banks.

The cheques inserted in ATMs would produce digital image of the same and sends it electronically to the IT network of the issuing bank to credit the amount accordingly. Note that the technology is already in use in North America and Europe and India for inter and intra-bank transaction purposes. So having CTMs inside ATMs is a desirable thing for retail customers.

Our View: This step, if it converts, is a welcome step by the customers and banks. It would shift a lot of load from retail banking operations to ATM machines. But customers will have to wait before they could see these ATMs in every place as this involves 48000 of already existing ATMS.
Economic Times Reference