VSoft bets big on India-specific CTS solution

With the Reserve Bank of India (RBI) in the final stages of rolling out the cheque truncation system (CTS) across the country, Atlanta-based cheque imaging and data management software solutions provider VSoft is gearing up to promote its India-specific CTS solution - eDesk CTS. VSoft has its offshore development centre in Hyderabad.

The 12-year-old company, which is one among the three-four companies to have developed CTS solutions for the Indian market conforming to the RBI guidelines, is at present negotiating with a few banks in the country to deploy its solution.

"We have already deployed eDesk CTS and started working with two banks - one in the private sector and the other a public sector undertaking. We are also in advanced stages of talks with a few banks for the same," George Verghese, vice-president (sales), VSoft, told Business Standard.

The RBI has already begun testing CTS at banks in the National Capital Region (NCR) on a pilot basis. The CTS will go live in the NCR by December this year, and is expected to be rolled out across the country in a phased manner, after RBI examines the response from it in the region.

Cheque truncation system comprises an image-capturing scanner and software. The process involves the scanning of obverse and reverse sides of the cheque, and subsequent transmission of the data and images to the clearing house or branch.

At present, cheques are physically submitted to clearing houses across the country for transmission to the drawee banks and payments thereafter.

According to Verghese, the CTS mandate, especially for high-value cheques, offers a whole gamut of opportunities from the 120-odd major financial institutions, both domestic and MNCs, in the country.

"With the financial institutions keen on deploying CTS, we are hopeful of notching up 10-15 per cent of the market in 2008, and garner revenues upwards of Rs 10 crore by mid-2009 from our CTS solution," he said.

VSoft, had in May this year, acquired the business of Bangalore-based Coopman Consultancy Services.

This acquisition has brought in the latter's core banking solution product - Suvikas, a product developed specifically for the urban cooperative and regional rural banks "" into VSoft's fold. Besides, it added 30 banks to the company's clientele-base.

"We see significant potential in offering core banking as a software-as-a-service (SaaS). We have already won four customers since the acquisition, and are in talks with the National Federation of Cooperative Banks, and state federations like the Maharashtra State Cooperative Banks Association for deploying Suvikas. An announcement would be made in this regard in the next two to three months," Verghese said.

VSoft currently employs 180 globally, of which 90 work out of Hyderabad. It plans to double its Hyderabad headcount by the end of 2008.