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bank truncation
BAHALI YAKE
#1 Posted : Saturday, May 28, 2011 8:09:35 PM
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Joined: 4/29/2011
Posts: 21
Location: kenya
recieved mail from one of my service providers stating that from 1st of june bank truncation wil take place what are the pros and cons of this
sparkly
#2 Posted : Saturday, May 28, 2011 8:40:31 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
You got the email, so tell us!
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BAHALI YAKE
#3 Posted : Saturday, May 28, 2011 9:17:55 PM
Rank: New-farer

Joined: 4/29/2011
Posts: 21
Location: kenya
the email was vague thats why ineeded wazuans indulgence
mukiha
#4 Posted : Saturday, May 28, 2011 10:09:46 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
It is CHEQUE truncation, not bank truncation.

It will help speed up the clearance of cheques from the present 4 days to 3 days and eventually to 24 hours [by year end]

Essentially; if give me a cheque drawn on your EQTY account and I bank it in my KCB account, my bank will take a digital photo of the cheque and send it to your bank.

Your bank will then verify signature and amount and communicate to my bank. If all is OK my bank will pay the money to me. In short, clearance will be done without physical movement of the cheque.

Evenvtually, the banks will link up their databases so that clearance will be done "in-house" within 24 hours. That is, when I bank the cheque in my KCB account, my bank will retrieve your signature from EQTY database and verify it. Then the amount will be keyed in and an Ok or Not Ok message will be replied {NB: my bank will not get to know your account balance - just whether there are enough funds; same way they do with debit cards}.

If you are an honest person, then this is a great move' but if you like "playing" around with the long clearance time, then this is bad for you.

BTW: the network deal was worn by SCOM
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Lolest!
#5 Posted : Sunday, May 29, 2011 6:36:26 AM
Rank: Elder

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Location: Kianjokoma
Mukiha, thats comprehensive. Asante sana.
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Agra
#6 Posted : Sunday, May 29, 2011 2:01:16 PM
Rank: Member

Joined: 4/22/2007
Posts: 96
Location: Agra, India
What are the cost implications now.What are the charges from the major banks for new cheque books and who will bear the cost?
It's easy for investors to get emotional and prejudiced when trading, but computers don't
Barrywhite
#7 Posted : Monday, May 30, 2011 1:51:00 PM
Rank: Member

Joined: 12/2/2009
Posts: 286
Location: Nairobi

Normal charges will apply - according to Stanchart, my provider.You could actually continue to use the old cheque book to withdraw cash from your account; however if you issue the cheque after 1st to someone, it will take 21 days to clear as the frequency of physical movement of cheques will be reduced significantly to twice a month, only until year end. After that old cheques will not be accepted at all.
The laudable is more often than not rendered laughable by overclaim
mukiha
#8 Posted : Monday, May 30, 2011 3:06:56 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
UPDATE: The deadline has been pushed to 12th June. Here is copy of email from my bank:

"New CTS cheque books to be introduced from 13th June 2011. You may therefore continue using your old cheque book until 12th June 2011. If you have not placed an order for your CTS compliant cheque book, please do so immediately"
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#9 Posted : Monday, May 30, 2011 3:08:47 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
One beef I have with this is that there is no info in public domain on how to recognise the CTS cheques.... If you pay me by cheque, how do I know whether it is CTS or old type?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Outvestor
#10 Posted : Monday, May 30, 2011 3:47:08 PM
Rank: Member

Joined: 8/8/2009
Posts: 171
mukiha wrote:
One beef I have with this is that there is no info in public domain on how to recognise the CTS cheques.... If you pay me by cheque, how do I know whether it is CTS or old type?


I got my Stanchart CTS checkbook last week. Notably:

1. All cheques accross all banks will all be of standard size (7x4) inches.... the older Stanchart cheques were of smaller dimensions.

2. The CTS cheques bear a hologram (I was expecting something with a KBA logo etc, but mine just shows the SBK logo.

3. There's an Ultra-Violet light sensitive portion on these cheques, just like that found on most currency notes.

4. Alterations of any kind; even when counter-signed will not be accepted.

5. I'm not sure if this applies across the board.... but for Stanchart, you need to have the cheque-book activated (unlike before) prior to using it.
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