Standard Chartered Bank : Cheque Truncation System

Going beyond Magnetic Ink Character Recognition technology for cheque processing, this project hopes to eliminate the physical cheque

Tuesday, May 06, 2008

With the aim of developing and implementing a system to cater to the core processing requirements of Standard Chartered Bank, Zylog Systems has devised a system to change the cheque clearing process spanning across the vital clearing operations like Outward, Inward, Outward Return, and Inward Return. The Cheque Truncation System is expected to support image based and physical clearing procedures.

There were two key challenges in this deployment. One was the implemention of an Image Quality Analyzer (IQA) at the participating bank's system as per the mandate by RBI. The other was lack of availability of hardware for integrating HSM at the customer's end. Zylog has successfully implemented the system as two distinct processes: NCR CTS, which caters to Delhi/NCR and incorporates vital banking functions like Outward Capture and Data Entry. A Non Truncated CTS was deployed in other cities, w hich features a scaled down version of the NCR CTS.
Due to this system, the bank's business has moved up 10 fold, since electronic images are being used for payment processing. Plus, the images will be preserved for eight years. In the future, the company plans to add more modules to this system.

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