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SICSR

Cheque Imaging Workflow

Cheque Image transfer through FileAct

10/8/2011

The following document shows the workflow of Transmission of cheque images using

SWIFTNet FileAct protocol.

Submitted By:

Pranav Kataria- 10030141114

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Cheque Imaging Workflow:

Batch LogingImage

Capture

Image Quality

Management

Image

Review/

Rescan

Reports

FileAct

Transfer of

Image & data

IRISImage Character

RecognitionAmount EntryReject Repair

Digital Dashboard

Reconcileme

nt &

Balancing

Payee Name

Archive

Host

Applicati

on

Exchang

e

Monitor

Receipts

Reports

Branch/Hub

RBI/

Direct

Exchange

Archive

Operations Centre

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For the transmission of cheque images, most financial institutions require the ability to exchange files in

a secure, reliable and cost-effective manner. FileAct allows you to do precisely that. Following are the

processes covered under the Cheque Imaging Workflow.

Processes

Image Capture

After getting Log Batches/cheques from Branch, image capturing of Batch Ticket takes place. Magnetic

Ink Character Recognition, or MICR, is used for the processing of cheque. It is a character recognition

technology used primarily by the banking industry to makes up the routing number and account number

at the bottom of a check. The Front and Back Images are captured as per the guidelines stated by the

Central Bank.

Image QualityImage quality is checked on various factors like,

Partial Image Excessive Image Skew Image Too Light or Too Dark Image Contains Streaks and/or Bands Below Minimum Image Size Exceeds Maximum Image Size

Image ReviewImage Review displays images of all items that have failed Image Quality check. Teller reviews images

and optionally Re-Scans bad images

Selected Items are Re-Scanned for a better Image. System validates MICR to make sure the image

replaces the right item

Archive & Reports

Archive constitute of 5 day Storage. There is a provision of Backup in case of Lost Cheques. Availability of

cheque images can occur same Day.

Secured Transmission

It is based on FileAct transfer of cheque images through SWIFTNet secured network.

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IRIS

IRIS or Image recognition integrated systems is helpful in text recognition and document management

of the Cheque images received.

MICR line Rejects only if,

The cheque was run upside down, IRIS rotates the cheque If the cheque was run front side backwards, IRIS flips the cheque.

Image Character Recognition

Courtesy Amount Read (CAR) and Legal Amount Read (LAR), i.e reading the mentioned amount in both

in numeric and word format. Apart from that it also checks for the Payee Date, Payee Name and

Depositor Account Number.

Amount Entry

Amount entry is being done by the system on a very high speed. Key amounts upwards of 2500 iph.

During the complete process, only 30% of manual work is required. Hence there is an increase in

efficiency.

Reject Repair

If the images are rejected by the system, there is a provision of fixing the rejected cheques as per sort

pattern. In this process, only 20% of manual job is done.

Reconcilement & Balancing

If it is found that there is an Out Of Balance transaction, reconcilement and Image Correction is carried

out.

Payee Name

This process fixes only unreadable part of the cheque. Here only 10% of work is manual.