Cheque Truncation Developed

A local business technology solutions provider, Fintech, has come up with a system through which banks could send scanned images instead of Paper Cheques for clearing and settlement, in a process known as Cheque truncation. If adopted, the system will reduce floating time available for funds by enabling single - day Cheque clearance. The technological innovation follows an earlier directive by the Central Bank to the Kenya Bankers Association to have the system operational in all Commercial Banks by October this year.