(6) Prerequisite For the specification, CBM will conduct required review and confirmation in timely manner. In addition, regarding to the consideration of new rules below, it should not affect to the specification in this document. For the rules regarding to introduction of this function, CBM is requested to determine the operation policy (includes the configuration policy such as timing or frequency of settlement, operation hour, maximum transfer amount, sender net debit cap amount), notice it to FIs and put it into configuration if it is necessary before start of operation. Moreover, CBM may have to determine the risk mitigation schemes described in (1)(C), and agree with FIs before the running test starts. 3.2.4.1.5 Cheque Truncation (1) System Function (A) Basic Concept and function overview For more convenient cheque clearing operation for FIs, the cheque truncation system can settle cheques using its images data and will be implemented. To implement the cheque truncation function, the following items will be scope of Phase 2 development.  The cheque truncation system (CTS) will be implemented to receive payment and image data from presenting banks, net the payment data, and send payment and image data to issuing banks.  Netting will be conducted within the designated time by CTS and the result will be input to CBM-NET and settled by RTGS20.  Thirty-one cheque image scanners will be provided to FIs (4 state-owned banks, 24 Myanmar private banks, and 3 for CBM). The following diagram is an overview of the cheque truncation system (CTS). 20 Frequency of settlement will be defined by CBM 53