Source: Preparatory Survey Team Figure 3-21 Overview of the cheque truncation system Encoding MICR on cheques after receiving from the beneficiary (optional). 1. Scanning cheques and creating image data and payment data using cheque image scanners. 2. Confirming image data and modifying payment data before uploading to CTS. 3. Uploading payment data and image data on the web interface of CTS using CBM-NET terminals. For accessing this web interface, browsers on the CBMNET terminals are assumed to be used, because the network for accessing the CTS will be shared with the network for CBM-NET Phase 2. 4. Netting payment data on a regular schedule on the CTS. 5. Downloading payment data and image data from CTS and validating cheques using image data and payment data. 6. Settled on the CBM-NET Phase 2 using netting data. Users of this system must scan physical cheques to create image data and payment data from MICR. Basically, equipment for scanning cheques and other equipment for cheque truncation are requested to be prepared by FIs. However, for encouraging and supporting the transition of local banks to cheque truncation, some cheque image scanners will be provided in the budget of this project. Further equipment necessary for each FI’s condition or expansion to branches will be through investments by the FIs themselves. 54