Bangladesh Automated Cheque Processing System (Bacps)

Bangladesh brim Head Office, Dhaka Payment ashess Division PSD Circular zero(prenominal) 02/2009 Managing Director/Chief Executive Officers All scheduled beachs in Bangladesh pick up 4 Falgun 1415 February 16, 2009 Dear Sir, Bangladesh machine-driven Cheque Processing System (BACPS) at the expanded Dhaka Clearing Region. You argon awargon that Bangladesh Bank has been on the job(p) to modernize the countrys payment system. The most visible measuring stick towards modernizing payment system is the establishment of the Bangladesh Automated Clearing House ( live). Bangladesh Automated Cheque Processing System (BACPS) is one of two agents of live.The other component of BACH is the Bangladesh Electronic Funds Transfer Network (BEFTN), which testament be implemented immediately after implementing first phase of BACPS. Selected vendor has already started procuring inf allible hardware and software for the BACPS solution. luxuriant system specifications and operational configur ations are being defined and calculated with a target of going expire operation at expanded Dhaka Clearing Region with more than 1050 stick branches of 49 banks in and around the capital city during the sanction half of 2009. 2.The basic features of BACPS are the adoption of new check over physique standard with a Magnetic Ink Character Recognition (MICR) scratch line and the exchange of cheque-image and info instead of paper cheques for illumination and colonisation purpose. Retention of the original paper cheque will become the duty of the presenting bank rather than the paying bank. Banks are required to make placement and develop infrastructures to meet the requirements of the new system. Bangladesh Bank will adopt incumbent Regulation(s) and issue Operating Rules and Procedures in this regard.Standards of cheques for BACPS have already been circulated and banks have retardation been advised to take grades to print uniform standardized cheques with MICR line. fasc inate information to the banks ab turn up requirements they must meet to participate in and user interface with BACPS are provided downstairs (i) Point of Truncation All scheduled banks who are members of the Dhaka Clearing House will be required to call down their list of selected branches and to finalize their point of truncation for submission of their outward cheque images and selective information 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 save 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 minatory and White Back Black and White DPI range 200-300 DPI 200-300 DPI Format TI FF TIFF Compression CCITT G4 CCITT G4 3. iii) software package/Integration All banks will receive images and data, not paper cheques, from the BACPS for all of the items for which they are the paying bank. Therefore, all banks must acquire the capability to behave 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 victimization the Bangladesh Banks own facility at Motijheel for a particular(a) 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 Participating 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 set in place two secure communication cerebrate, one with BACH Headquarter at Motijheel and another with the BACH Disaster Recovery Site (DRS) at Mirpur. The size and scalability of these link will depend on each banks mode of operation and daily volumes. It is preferred that banks acquire eccentric optic link and another redundant communication link with BACH at Motijheel and DRS at Mirpur, Dhaka. 4.Participating banks are required to accomplish the pursuance 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. Communication 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 sign 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 visible(prenominal) at our website. 6. It is, therefore, advised that member 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. cheer acknowledge receipt. ( Chowdhury Mohidul Haque ) Executive Director, Bangladesh Bank and Project Director, RPP Project Tel 7167988, Fax 7164233 netmail chowdhury. emailprotected org. bd