close button

Back

logologo

Cheque Clearing Reduced from T+3 Days to Minutes with 80% Fewer Reconciliation Errors

BCT designed an end-to-end Cheque Truncation System that reduces manual handling, strengthens fraud controls and supports secure clearing across the banking ecosystem.

Cheque Clearing Reduced from T+3 Days to Minutes with 80% Fewer Reconciliation Errors

Client

Challenge

The existing cheque clearing process relied on manual handling and physical movement of instruments. This made clearing time-consuming and error-prone, creating delays in settlement, higher operating costs and greater risk of fraud or misplaced cheques.

The organisation needed a comprehensive Cheque Truncation System that could support outward and inward clearing, accounting, Positive Pay, departmental instruments, centralised inward clearing and integration with clearing-house operations. The solution also had to provide secure exchange of cheque images and transaction data while supporting adoption across a complex banking ecosystem.

Solution

BCT designed a mission-critical, web-based Cheque Truncation System to support the end-to-end electronic clearing process. The application covers image capture, validation, clearing, settlement and reporting, enabling participating banks and settlement systems to exchange cheque images and related transaction data securely.

The solution provides a unified platform for outward clearing, inward clearing, accounting, Positive Pay, departmental instruments and centralised inward clearing. Integrating these functions under one operating model supports consistent processing across participating institutions and reduces dependence on physical instruments.

The application was built with Java Spring Boot and Angular, with Oracle Database as the primary transactional datastore. JPA supports persistence and data access, while a layered MVC design and microservices architecture provide structure for maintainability, integration and future scale.

Security, operational resilience and usability were treated as core design requirements. Automated validation and reporting support accurate processing, while the platform is designed to handle high transaction volumes and maintain continuity during peak clearing activity.

Impact

The electronic clearing cycle was reduced from T+3 days under the manual process to a few minutes. Automated validation and reporting reduced manual reconciliation errors by at least 80%.

The removal of physical cheque movement and manual handling lowered operating costs by an estimated 50–60%. Positive Pay and centralised inward clearing were designed to reduce fraudulent cheque incidents by 60% or more.

The platform provides a common foundation for secure cheque-image exchange, settlement and reporting across the banking ecosystem. Its architecture is designed to process hundreds of cheques daily and scale to higher volumes with operational resilience.

The solution also provides a basis for wider participation by banking institutions and departments, supporting the transition from manual clearing to a standardised digital process.

Office location

148, Rajiv Gandhi Salai(OMR), Okkiyam Thoraipakkam, Chennai - 600 097

Phone number

+91 44 43449000,
+91 44 61739000

Email address

talktous@bahwancybertek.com

Bahwan CyberTek is a global technology transformation partner, driving innovation and equipping companies for the future.

© 2026 Bahwan CyberTek. All rights reserved.

Cookie Policy  
Privacy Policy