To provide adequate banking needs to the customers, India currently has over 130,000 brick and mortar branches. To reduce the lead time of transactions through cheques, RBI’s has taken initiative to implement Cheque Truncation System. Over the years, the demand for cheque scanners have increased considerably due to adoption of these by various banks in the country. Further, with rise of automated cheque deposition kiosks and digital bank branches promoted under Government supported “Digital India”, India Cheque Scanner Market is poised to continue on the path of steady growth in the near future.
According to 6Wresearch, India Cheque Scanner Market is projected to 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. 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.
According to Ninad Chavan, Country Manager, Digital Check Corp, “Cheque continues to remain a vital mode of payment in India especially for the B2B transactions and is still considered one of the safest and trusted payment options. With demonetization, the number of transactions through cheques are expected to surge in the coming years.”
Additionally, “Digital Check Corp is providing scanning technology for cheque truncation system, remote deposit capture (RDC) and also self-service cheque kiosks. With increased focus on bank branch automation, the solution for RDC is capable of providing the industry with significant cost saves on cheque processing as well as faster turnaround time and enhanced customer experience. The market is expected to implement RDC in near future as part of the digitization drive. Likewise to further enable the branch process automation, the company is also launching a self-service kiosk product ‘ScanBox’ in India during early 2017 for which the company has already won an Innovation award at Paris Banking Show” Mr. Chavan further added.
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.”
“Moreover, 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”, Sathi further added.
According to Kushagra Sharma, Research Associate, Research and Consulting, 6Wresearch, “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,” Kushagra concluded.
The major companies in India Cheque Scanner Market include- Canon India Pvt. Ltd, CTS Electronics S.p.A, Digital Check Corp, Ernst Reiner GmbH & Co. KG and Panini S.p.A.
