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Implementation of image based cheque clearance


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Newgen Case Study on Implementation of Image-based Cheque Clearance.

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Implementation of image based cheque clearance

  1. 1. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & DOCUMENT MANAGEMENT Implementation of Image-based Cheque Clearance For a Leading Private Sector Bank in India Overview Established in 1985, the bank has been one of the India's most reputed financial organizations and the flagship company of its group. The Reserve Bank of India (RBI) issued a license in 2003, for the organization to manage the banking business. This approval creates a banking history since it is the first Indian company to get converted to a bank. The Challenge The mandate from the central bank - Reserve Bank of India (RBI) “Newgen’s solution has enabled obligating all the banks to adopt electronic cheque clearance system the bank to become compliant as resulted in the client seeking a proven, best-of breed, and image-based per the Central Bank’s mandate cheque clearance system. The physical cheque flow processes were time for the cheque clearance consuming and also lead to huge expenses incurred in archival, storage and process. It has allowed the bank transportation. to achieve lower operational costs. It has also offered faster In order to overcome this challenge, the bank was looking for TAT by processing large centralization and automation of the cheque clearing process. This would numbers) of inward and outward result in the implementation of the bank specific processes. This would cheques. The Newgen solution also lead to optimal utilization of the resources resulting in better customer not only provides a holistic view service with lower Turn Around Time (TAT). Moreover, the bank also of the business but also supports needed to automate other processes like warrant processing, cash the audit and compliance management cheques, which are around the cheque clearing process. features.” Seamless integration with the existing core banking system - Flex Cube and complying with the comprehensive security policy, presented a great challenge. Yet another challenge was the short implementation time. The bank needed to be the first amongst the member banks in implementing this new technology. The Newgen Solution To meet its requirements, the bank analyzed the available solutions and finally chose Newgen's Cheque Truncation System (CTS, ChequeFlow). TM TM The ChequeFlow comprises of OmniFlow for process automation, TM OmniDocs as underlying document management system and TM OmniCapture for scanning and indexing. The Newgen solution has been implemented for both the Inward Clearing as well as Outward Clearing. The solution takes care of 3500-4000 inward cheques and 4000-5500 outward cheques on daily basis. The cheques presented to the bank are captured as electronic images serving as replacements for the physical cheques. The Newgen solution captures the extracted data from the electronic images and ensures cheque validation, technical and signature verifications with minimal manual intervention. The Newgen solution, operating on top of the core banking system and having seamless integration with the same, enables automatic data
  2. 2. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & DOCUMENT MANAGEMENT transaction. According to the authority matrix defined in the system, the Newgen solution supports second-level Technical and Signature Verification under the maker-checker concept. The Newgen solution supports OCR for warrant number and payee name extraction and auto- matching of the same with the master data. Finally, the Newgen solution archives all the instruments in the underlying document management Newgen Software Technologies TM Limited is the market leader in system - OmniDocs . Business Process Management (BPM) and Document Management For outward clearing, the electronic images of the cheques are captured. System (DMS), with a global The Newgen solution enables image quality check, image verification and footprint of about 750 installations in over 35 countries. More than 100 of correction of the IQA failed cheques, manual data entry and data these implementations are large, verification. The Newgen solution, finally, exports the files to the central mission-critical solutions deployed at Bank - Reserve Bank of India in a prescribed format. world's leading BFSI, BPO and Fortune Global 500 companies. The Benefits Newgen is recognized by The benefits to the bank are multifold. distinguished analyst firm IDC in its ! With the deployment of the Newgen solution, the bank became compliant exclusive report “Newgen Software: with Central Bank’s mandate on Cheque Clearing even before the mandate Global Leader in Business Process goes live. Management and Document ! Scanning and processing of outstation cheques helps achieve lower Management Solutions.” With HSBC and SAP investment, Newgen operational costs by reducing the courier charges and processing time. is one of the rare product companies ! The Newgen solution requires minimal manual intervention for image- to have backing of both leading based cheque clearance and hence effectively reduces the cheque clearing financial and technology companies time. of the world. ! The bank gains competitive advantages by achieving higher customer Winner of prestigious awards, such satisfaction due to the reduced Turn Around Time (TAT). By using the as CNBC-TV18 “Emerging India Newgen Solution, the bank is enabled to process 3500-4000 inward Award 2008”, Frost and Sullivan's cheques and 4000-5500 outward cheques on daily basis. “Market Leadership Award for ! The Newgen solution also automates the warrant processing and cash Document Management System and Workflow Software & Services” and management of the cheques, which are tightly coupled with the cheque “Distinguished Application Product clearance process. Company” by NASSCOM, Newgen’s ! With extensive reporting facility for real-time tracking and visibility of Quality Systems are certified against cheques, the Newgen solution provides a holistic view of the business. ISO 9001:2008 and Information TM ! Newgen’s CheckFlow ensures a secured transfer of images to the Security Standard, ISO 27001:2005. Newgen has also been assessed at central bank leading to less fraudulent cases CMMI Level3. ! All the cheques are archived in the underlying Newgen’s document management system - OmniDocsTM, which ensures faster searching and retrieval of documents ! The Newgen solution has an audit trail facility, which provides support for the audit and compliance Newgen prestigious clients include HSBC Bank, Deutsche Bank, Hua Nan Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank of India, ING Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York Life, Bajaj Allianz, Royal Sundaram Alliance, Unilever, Philips, GE Countrywide, EXL, Satyam Nipuna, iGATE, Core 3, Ranbaxy, GSL, Kenyan Airways and SEC Phillipines. Corporate Office US UAE Newgen Software Technologies Ltd. Newgen Software Inc. Newgen Software Technologies Ltd. A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 YI 46, PO Box 120586 Qutab Institutional Area, McLean, VA 22101 Sharjah Airport International Free Zone New Delhi - 110 067 INDIA Tel: +1-703-749-2855 Sharjah, United Arab Emirates (UAE) Tel: +91-11-4077 0100, 2696 3571 Email: Email: Fax: +91-11-2685 6936 Email: UK Malaysia Newgen Software Technologies Ltd. Newgen Software Technologies Ltd. 68 Lombard Street, Plaza Sentral BK-CS-KOT-03 London EC3V, 9LJ Kuala Lumpur Tel: +44-207-868 1736 Malaysia Mobile: +44-78154 96669 Tel: +6017 2527239 Email: Email: