In order to improve efficiency, reduce operational risk and time taken for cheque processing, the Reserve Bank has initiated steps to introduce a Cheque Truncation System (CTS). A pilot project has commenced in the National Capital Region in Delhi where processing volumes have picked up substantially and about 70% of the cheques are being routed through the CTS.
According to the first objective, the goal of macroprudential policy is to control the effects of a credit crunch or, more generally, a large-scale balance-sheet contraction of financial institutions on the society. 1 According to the second and perhaps more ambitious objective, the goal of macroprudential policy is to prevent an excessive build-up of risks in the financial sector as a whole.