An Overview

The basic premises on which the architecture of this application was built is the understanding that Cheque Truncation is not just an imaging application. It is a Payment Processing Application to compliment Core Banking System of the user Bank.

The whole product has been built on the following four considerations:

  • Technical architecture should support, horizontal and vertical scalability for Cheque processing, Clearing and Settlement.
  • Lock Box Servicing
  • Straight Through Processing
  • Credit Card Processing

The product architecture provides high-level of cutomisation and what is more, it can be customized at the shortest time, to match the work-flow of the Bank. The product is not rigid, and does not require re-engineering of the existing process and work-flow of the user. Instead, it becomes customisable to match the process and the work-flow of the Bank.

The very essential and key features of the CTS Application Veracious are given below.

    1. Application Security
    2. Fraud Prevention
    3. Image Capture
    4. Outward Process
    5. Inward Process
    6. Settlement Process
    7. Implementation Options

1. Application Security:

  • System conforms to the requirements of the IT Act 2000 and the Negotiable Instruments (Amendments & Miscellaneous Provisions) Act 2002 for recognition of images as valid instruments for payment by the drawee Banks
  • PKI based security is implemented at domain level and user level
  • Parameter based Encryption, Digital Signature at Instrument, File level for optimum bandwidth usage
  • Each instrument is digitally signed at Capture stage
  • Sensitive data encryption like Routing No, Account No at database level using 3DES
  • Password encryption using SHA1
  • Comprehensive system security and extensive system logs / activity tracking
  • Restricted user login based on their Roles with restricted menu / module option
  • Restricted hours for the users based on the login setup
  • Maintains automatic work station time-out / log-out
  • Disallow duplicate logins with the same user name and password
  • Automatic Password Expiration based on the setup parameter.
  • Template based Login schedule security.

2. Fraud Prevention:

  • Provides a policy based business risk management module for cheque clearing and settlement
  • Customizable User Selected Rules in Fraud filters for:
    • Four eye validation
    • New account screening
    • Invalid Routing / Transit numbers
    • Post Dated Cheques
    • Duplicate items in Batch and Database
    • Deterring high value transaction
    • Similar items
    • Physical Signature verification at IP
  • Threshold limits (Days / Amount) for New Accounts can be set at the Account and Account Type levels.
  • Multiple Signature setup and verification for corporate accounts based on the rules specified like “From amount / To Amount”, Signatory priority etc.
  • Signature extract from the image is available and can be used with third party signature matching applications
  • Physical verification of cheques with comments in Pre-truncation / Co-existence of Physical / Electronic image exchange for Date, Amount, Signature, and Account No.

3. Image Capture:

  • Centralized / Distributed / Standalone image capture system
  • Remote capture at the branch, service branch, off-premises including corporate and merchant-customer locations
  • Scanning hardware is not limited to one type of check scanner to run your item processing applications
  • Provision for endorsing unique item sequence number on the instruments
  • Capable of accepting multiple image formats (tiff, jpeg)
  • Capture front and rear images as per RBI specification
    • Black and White Front – 200 DPI/TIFF/CCITT G4
    • Black and White Reverse – 200 DPI/TIFF/CCITT G4
    • Grey scale Front – 100 DPI/JPEG/JPEG
  • Parameter based Data and Image Sorting (Status, Routing No, Transaction code, Amount, Date)
  • Parameterized setup to identify At Par checks / Multi city checks
  • Support inter-operable open image standards and the images can be viewed using any standard browser
  • Hot key functions for increased operator speed and accuracy
  • The IQA (Image Quality Analyzer) provides multiple, independently configurable tests as per the standards of NPCI/RBI.

4. Outward Process:

  • Supports Multiple Clearing Houses
  • Flexible and intelligent Routing Setup to exchange the Outward presentment to User defined Clearing Houses
  • Routing Failed cheques can be identified and are sent to Suspense account for further review, thereby complete control over the instruments scanned
  • User defined Routing setup to send Dividend warrants or any specific type of instrument to specific Clearing House
  • Supports MQ based Interface to any Core Banking system at Participant Level.

5. Inward Process:

  • Flexible Inward Routing setup to distribute the transactions to various branches
  • Unmatched cheques can be identified and are sent to Suspense account for further review, thereby complete control over the instruments
  • Pay, No Pay Decision is with the Core Banking system
  • Inward Return redirection to Client Relationship Managers / User groups
  • Supports MQ based Interface to any Core Banking system at Participant Level
  • Inward files from RBI/NPCI can be matched against the scanned Inward cheques to get Amount and Account no. from Check Inventory Master in Pre-truncation / Co-existence of Physical / Electronic image exchange

6. Implementation Options:

  • Application Service Provider Model to serve multiple banks’ clearing requirements
  • Centralized / Stand alone / Hybrid Implementation to meet Customer decision based on Geographical spread of the Branches and the Volume of Transactions at the Truncation points
  • Provides multiple options of deployment that is easily convertible from one model to another and able to co-exist – centralized, distributed or hybrid
  • Co-existence of Physical and Electronic Image Exchange for smooth migration from Pre-truncation to Truncation environment
  • Enabling banks to seamlessly migrate between implementation model

Apart from the key features stated above, the following features are also available in the Application.

  • Capable of reading the MICR code on the cheques through OCR interface.
  • Flexible operational grouping for Scan, Reject and Repair operation using many levels of Pass and Run.
  • Unmatched cheques can be identified and be sent to Suspense Account for further review in all process (Outward and Inward). Option is available to return the Cheque with specific reason to the POD.
  • Customer Service features like integration with Internet Banking, Cash Management System etc.
  • Can support images of deposit slips, and in CMS products, the images of accompanying documents and will also bunch the images to a common reference.
  • User can mark specific related notes for every instrument after verifying the Date, Amount, Signature, Account no. etc., to avoid fraudulent transactions and mark them as separate.
  • Necessary interfaces are provided for transfer of data and images to any external data warehouse.
  • Job Manager can automatically send transactions to central operations during the pre-defined time, which minimizes network bandwidth usage.
  • Multiple process scheduling of jobs in a day with different timings.
  • Settlement Module for inter-bank, intra-bank and inter-city clearing with capabilities for consolidating the day’s inward and outward presentations for raising a single debit or credit on the participating branches.
  • Settlement grouping by Participant, Clearing Type and Account.
  • Reconciliation drill down option.
  • Storing the signatures that are used to physically verify the signatures with images of the check, provision for integrating with the third-party signature verification application.
  • Set-up available for marking holidays and transaction type.
  • Archival can be done, periodically with a scheduler.
  • Presentment/Settlement Reports, Set-up reports by participants and touch-points, session-security based report access, Activity by touch points, File process log, Return Reject Analysis.
  • Simple TAB based interface to access all reports, based on user roles.
  • Supports complete audit log on who did what and when and these information can be views in both production and archival systems
  • Supports DASHBOARD to monitor all the activities by client , user and have complete control over the transactions

Veracious ePayment Suite architecture: