Canara Bank adopts electronic cheque clearing system

Canara-bank-reuters Reuters file photo

In the times of net banking and mobile banking, cheque clearances by some banks still remained in the bygone era. All that is changing. Canara Bank has changed the way it clears cheques, reducing the time taken to do so by 75 per cent.

Till now Canara Bank was using an old manual system for cheque processing which took about 3 days to go through. Besides being time consuming, the physical clearance method was very expensive-- given archival, storage and transportation requirements involved.

It is now digitised, following a recent mandate from the RBI, requiring banks to implement an image based electronic cheque clearance solution.

The bank's image based cheque clearing system has been built by SoftAge, a document management service provider. The system will shorten the time for cheque clearing cycles and create convenient banking facilities for their customers.

The scalable and robust solution enables cheque images to seamlessly flow from the branches to the head office to the central bank and back to branches, thus shorten the time for cheque clearing cycle by 75 per cent.

The solution also uses Public Key Infrastructure (PKI) Technology to provide a secure data exchange and no-repudiation of information.

According to Ms. Fahmida Ozair, CEO, SoftAge India, “The solution allows Canara Bank to cut costs associated with physical storage and transportation of cheques drastically. Digitising cheque clearance processes has also led to higher customer satisfaction due to reduced turn around time."

In order to prevail in a highly competitive market , the banking sector is also laying a lot of importance on customer satisfaction and creating convenient banking facilities to retain and sustain their customer base.

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Topics : #banking

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