The technology used in cheque clearing process or technology behind the new cheque truncation process is as follows:-
- Cheques are kept in the presentation bank and are never sent to the Clearing House or to the drawerâ€™s bank. The information on the cheque is encoded or read using MICR and then image processing technologies are used to convert cheque images to digital form.
- The image of the cheque is captured as it goes through the reader/sorter machine. This can be done by using either digital cameras to capture the digitized form of the front and back of the cheque or another alternative is by using a two-way digital scanner.
- The image is captured in the JPEG or GIF extension and can be preserved as images on a microfilm, an arrangement that permits signature verification should the need arise.
- During image compression the images should be of at least 100 dpi resolution so that the quality of the image is maintained.
- All cheques are stamped with serial numbers for use in potential inquiries. These should match with the number of the image.
- As most banks are gearing towards networked branches, Broadband and VPN could be the model adopted for providing connectivity. Dial-up or Leased Line can be used for transmission of MICR Codeline and images to the member banks via the Clearing House.
- JAVA based API can facilitate internal/external interactions with the archive. Browser based interface with which the customer can receive the cheque imageÂ statements via e-mail to see when the cheque was written, to whom it was made out and when was it cleared, will be extremely beneficial in the long run.
- The Technology should allow Drawee Bank/branches to view the front and reverse of cheque images of individual instruments in a number of ways (flipped, rotated, turned or enlarged a particular field/section) using any standard browser interface.