Benefit of Electronic Cheque Clearing
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Benefit of Electronic Cheque Clearing

NCHL-ECC is an image-based, cost-effective, MICR cheque processing & settlement solution where an original paper cheque is converted into an image for electronic processing of the financial transactions between participating member Banks/FIs. The physical movement of the cheques are truncated or stopped at the presenting bank and the cheques' images are electronically moved between the presenting and paying banks resulting in a faster and easier processing of the cheque transactions.

 

Some of the direct benefits to the Banks/ FIs from NCHL-ECC system are:

  1. Same day clearing and settlement at Nepal Rastra Bank (NRB) with minimum settlement time of (T+0) and maximum of (T+1) irrespective of the geographic location of the bank/branch.
  2. No need to physically move the cheques from the branches to NRB clearing house. Cheques will be truncated at the presentingbank which would speed up the process of settlement and ultimately alter the clearing cycle.
  3. Introduces a fully electronic solution using the modern digital communications and networking technologies to almost replace the paper based process.
  4. Better reconciliation / verification process as banks/FIs can know their net position at any point of time.
  5. Limited cheque movement means saving on transportation and manpower cost.
  6. Possibility of reducing manpower required for transfer and handling of cheques, which is a direct reduction on transaction costs.
  7. Increase in operational efficiency.
  8. Reduces operational risk of cheque losses and cheque related frauds by securing the transmission route.
  9. Better customer service due to elongated customer window.
  10. Enables both the Presenting and the Paying bank to track and audit the processes involved from the point of initiation to the final stage of cheque truncation.
  11. Ease of maintaining and accessing cheque image and other associated data that will ease day to day operation and for historical data.
  12. Possibility to differentiate and priorities cheques as VIP cheques.
  13. On-line notification between the clearing house and banks.
  14. Possibility of extended such services to the entire country with no geographical dependency and providing new services/ products based on ECC to its customers. It even allows the banks/FIs to provide 24x7 services.