Bangladesh Automated Cheque Processing System (Bacps)

Bangladesh coin coast Head Office, Dhaka Payment transcriptions Division PSD Circular no. 02/2009 Managing Director/Chief Executive Officers All scheduled jargons in Bangladesh battle 4 Falgun 1415 February 16, 2009 Dear Sir, Bangladesh machine-driven Cheque Processing System (BACPS) at the expanded Dhaka Clearing Region. You atomic number 18 aw ar that Bangladesh Bank has been workings to modernize the countrys payment system. The most visible timbre towards modernizing payment system is the establishment of the Bangladesh Automated Clearing House (bach). Bangladesh Automated Cheque Processing System (BACPS) is one of two parcels of live.The other component of BACH is the Bangladesh Electronic Funds Transfer Network (BEFTN), which forget be implemented immediately after implementing first phase of BACPS. Selected vendor has already started procuring demand hardware and software for the BACPS solution. minute system specifications and operational configurations are bei ng defined and calculated with a target of going die operation at expanded Dhaka Clearing Region with more than than 1050 bank branches of 49 banks in and around the capital city during the due s come forthh half of 2009. 2.The basic features of BACPS are the adoption of new verification spirit standard with a Magnetic Ink Character Recognition (MICR) label line and the exchange of cheque-image and entropy instead of paper cheques for glade and colonization purpose. Retention of the original paper cheque will become the function of the presenting bank rather than the paying bank. Banks are required to make system and develop infrastructures to meet the requirements of the new system. Bangladesh Bank will adopt requisite Regulation(s) and issue Operating Rules and Procedures in this regard.Standards of cheques for BACPS have already been circulated and banks have in the meantime been advised to take paces to print uniform standardized cheques with MICR line. abstract i nformation to the banks about requirements they essential meet to participate in and user interface with BACPS are provided at a lower place (i) Point of Truncation All scheduled banks who are members of the Dhaka Clearing House will be required to exact their list of selected branches and to finalize their point of truncation for submission of their outward cheque images and entropy to BACPS and be prepared to handle cheque image and data as part of their inward clearing operations.Banks can choose to interchange and process their cheques at individual branch level or at a consolidation point in line with their business needs. However, it must be noted that each bank will have completely one Point of Truncation for BACPS. (ii) Scanning Standard Images must be captured for both the sides (front and back) of each instrument in the format prescribed below Image Type 01. 02. Front relentless and White Back Black and White DPI range 200-300 DPI 200-300 DPI Format TIFF TIFF Co mpression CCITT G4 CCITT G4 3. iii) parcel/Integration All banks will receive images and data, not paper cheques, from the BACPS for each of the items for which they are the paying bank. Therefore, all banks must acquire the capability to unsay as well as to send the image files and data from and to the BACPS. However, those banks who will not be able to equip themselves for processing out clearing items electronically within the stipulated time, will be allowed to process their out-clearings by utilise the Bangladesh Banks own facility at Motijheel for a curb time.However, banks availing of out-clearing facilities will have to acquire the capability to receive their In-clearing items electronically. Once in-clearing data and images are delivered to a bank by BACPS, the subsequent verification and Contd P/2 -2- processing of that information becomes the responsibility of the respective paying bank. Bangladesh Bank will supply a gateway software module, known as the Participatin g Bank Module (PBM) which will act as a gateway, amongst other functions, enabling the receipt or transmission of images and transaction data from and to the BACPS. iv) Communication Links All scheduled banks are required to indue in place two secure communication associate, one with BACH Headquarter at Motijheel and another with the BACH Disaster Recovery Site (DRS) at Mirpur. The size and scalability of these cerebrate will depend on each banks mode of operation and daily volumes. It is preferred that banks acquire vulcanized fiber optic link and another redundant communication link with BACH at Motijheel and DRS at Mirpur, Dhaka. 4.Participating banks are required to accomplish the hobby tasks within the time stipulated below Activity Issuing MICR standard cheques and phasing out non-standard cheques used by customers b. Selection of vendor(s) and submission of plan for installing necessary hardware and software for cheque processing and connectivity with BACH c. Communicati on links installed between banks and the BACH d. Users Acceptance Test (UAT) for each individual bank with BACPS e. BACPS LIVE a. Dead-line 01-03-2009 to 30-05-2009 30-04-2009 31-05-2009 01-06-2009 to 30-07-2009 03-08-2009 5.The purpose of this circular and distribution of functional specifications is to provide an initial understanding about the requirements that must be met by the participating banks. Detailed specifications attached to this circular are (i) Active Image Clearing System (AICS) precondition containing the format of the files to be exchanged between BACPS and participating banks (Annexure-I) (ii) PBM Specification regarding functionality for gateway software module (Annexure-II) (iii) Network Specification describing standards for the communication links and security devices required for interfacing with the BACH (Annexure-III)All of these Annexures may be provided in soft versions on a CD and also be forthcoming at our website. 6. It is, therefore, advised that m ember banks update their preparations to be in step with the progress of the implementation of the BACH. The BACPS rules and procedures will be forwarded to you in due course. enjoy acknowledge receipt. ( Chowdhury Mohidul Haque ) Executive Director, Bangladesh Bank and Project Director, RPP Project Tel 7167988, Fax 7164233 netmail chowdhury. email&160protected org. bd