The bank implemented Newgen's image-based cheque clearance system to automate its cheque processing and comply with the central bank's mandate. Newgen's solution scans cheques, extracts data using OCR, and integrates with the bank's core system. It processes thousands of cheques daily with minimal manual work. This reduced costs, improved turnaround time, and provided audit tracking compared to the previous physical process. The bank was able to meet the central bank's deadline and gain competitive advantages with Newgen's system.

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
www.newgensoft.com

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: usa@newgensoft.com Email: emea@newgensoft.com
Fax: +91-11-2685 6936
Email: corpmktg@newgensoft.com UK Malaysia
Newgen Software Technologies Ltd. Newgen Software Technologies Ltd. www.newgensoft.com
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: intmkt@newgensoft.com Email: asiapac@newgensoft.com