While PM Modi's demonetization move was meant to boost digital payment, transaction through cheques has drastically gone up. This has led to the demand for cheque scanners in the banks and financial companies. This move is expected to shoot up in the coming years, according to a new research.
The 6Wresearch predicted that India's cheque scanner market will grow at a CAGR of 5.6% during 2017-22. India's Cheque Scanner Market is expected to grow on the back of continued rise in CTS cheque volumes which is expected to cross 1-billion-mark in the next couple of years, it said.
India currently has over 130,000 brick and mortar branches. To reduce the lead time of transactions through cheques, RBIÃ¢Â€Â™s has taken initiative to implement Cheque Truncation System. While there has always been a demand for this technology, with rise of automated cheque deposition kiosks and digital bank branches promoted under Government supported "Digital India", cheque scanner market is poised to continue on the path of steady growth in the near future.
The research highlighted that with the recent move of Demonetization by the Government in November, 2016, the usage of cheques as a reliable and secure instrument of monetary transaction is expected to rise.
Moreover, the possible opportunity of Remote Deposit Capture in Indian Banking System in near future coupled with the expanded application of cheque scanners through deposition kiosk, India cheque scanner market is expected to register key growth in the forecast period, informed Ninad Chavan, Country Manager, Digital Check Corp.
According to Sathi Paul, Senior Research Analyst, Research and Consulting, 6Wresearch, "Multi Feed cheque scanners have traditionally dominated the Indian market and the trend is expected to continue in the near future. The desktop application of the scanner in the brick and mortar branches is the main driver for this category. These are mainly deployed in the bank branches acting as a hub, dealing in large volume in cheque deposited in the CTS as well as non CTS branches of the same bank."
Canon, CTS Electronics, Digital Check Corp, Ernst Reiner GmbH & Co, among others are leading the cheque scanner market.
"Majority of these scanners have been equipped with the ability to scan UV imprints for enhanced security purposes, which would have a positive impact on reducing the frauds in cheque transactions," Paul added.
In fact, single feed category of the scanners is the fastest growing segment due to its applicability in cheque deposition kiosks. These kiosks are being used in the establishments where the collection of payments through cheque is more prevalent, such as Banks, Income Tax Departments, Electricity Board Offices, and Passport offices.
Single feed scanners are now also being installed in bank branches in tier II and tier III cities. These bank branches with low capacity requirements are now moving towards adopting Cheque Truncation System, the researcher noted.
Media Source: CXO Today