The Cheque Truncation System is the cheque clearance system initiated by the Central Bank (Bank of Mauritius) to speed up cheques clearing. Instead of producing the physical cheques to the payee bank, the electronic image of the cheque, MICR code and other cheque credentials are transmitted to the drawee bank for the payment through a clearing house.

The CTS is the conversion of a physical cheque into a substitute electronic form that facilitates transmission to the paying bank. It is mainly designed for those enterprises dealing with cheque such as Banks. Various versions of the CTS are designed depending on the exigencies of the purchaser. The basic version of the CTS comprises of the Portal, EDMS, Outward and Search modules.

  • How it works?
  • Individual/ company receives cheque.
  • Cheques are deposited at the collecting bank.
  • Collecting bank scan the cheques.
  • Cheques are processed and transformed into a coded form (XML)
  • XML are sent to the Clearing House (Bank of Mauritius) where exchange of XML is carried out.
  • The paying bank receives the XML.
  • Cheques which satisfy the verification process are honoured and the respective account credited by the collecting bank.

Cheques which do not satisfy the verification process are not honoured. The XML of those cheques are returned to the collecting bank. The customer is notified and gets an advice  explaining the reason for the return as well as a detachable image of the cheque.

Cheques which are rejected with reason “Insufficient Fund” can be re-presented.

Our main Clients for the CTS are:

  • ABC Banking Limited
  • AXYS Leasing Ltd
  • Bank of Baroda
  • Bank of Mauritius
  • Bank of Mauritius – Rodrigues Branch
  • Habib Bank Limited Mauritius
  • Registrar General Department
  • The Hongkong and Shanghai Banking Corporation
  • The Mauritius Revenue Authority
  • MCB Factors