Bangladesh Automated Cheque Processing System (Bacps)

Bangladesh Bank Head Office, Dhaka Payment Systems Division PSD Circular No. 02/2009 Managing Director/Chief decision maker Officers All scheduled banks in Bangladesh come across 4 Falgun 1415 February 16, 2009 Dear Sir, Bangladesh Automated Cheque touch System (BACPS) at the expanded Dhaka change Region. You are aware that Bangladesh Bank has been working to educate the countrys payment system. The most visible step towards modernizing payment system is the establishment of the Bangladesh Automated Clearing admit (BACH). Bangladesh Automated Cheque Processing System (BACPS) is one of two components of BACH.The other component of BACH is the Bangladesh Electronic Funds Transfer Network (BEFTN), which go forth be implemented immediately after(prenominal) implementing first phase of BACPS. Selected vendor has already started procuring necessary hardware and software for the BACPS solution. Detailed system specifications and operational configurations are being defined and calc ulated with a target of going live operation at expanded Dhaka Clearing Region with more than 1050 bank branches of 49 banks in and around the bully city during the second half of 2009. 2.The basic features of BACPS are the adoption of new cheque design standard with a Magnetic Ink Character erudition (MICR) code line and the exchange of cheque-image and data instead of paper cheques for clearing and settlement purpose. Retention of the original paper cheque will become the right of the presenting bank rather than the paying bank. Banks are required to make arrangement and develop infrastructures to meet the requirements of the new system. Bangladesh Bank will adopt necessary Regulation(s) and get laid Operating Rules and Procedures in this regard.Standards of cheques for BACPS fork over already been circulated and banks have meanwhile been advised to take steps to print uniform standardized cheques with MICR line. Appropriate information to the banks roughly requirements they must meet to participate in and interface with BACPS are provided down the stairs (i) Point of Truncation All scheduled banks who are members of the Dhaka Clearing House will be required to submit their list of selected branches and to finalize their point of truncation for submission of their outward cheque images and data to BACPS and be prepared to parcel out cheque image and data as part of their inward clearing operations.Banks can choose to truncate and process their cheques at individual branch direct or at a consolidation point in line with their business needs. However, it must be noted that each bank will have only 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 under Image Type 01. 02. Front Black and White Back Black and White DPI range 200-300 DPI 200-300 DPI Format TIFF TIFF Compression CCITT G4 CCITT G4 3. iii) Software/ desegregation 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 electrical capacity to accept as nearly 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 treat out clearing items electronically within the stipulated time, will be allowed to process their out-clearings by using the Bangladesh Banks own facility at Motijheel for a limited 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 single 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 func tions, enabling the receipt or transmission of images and transaction data from and to the BACPS. iv) Communication Links All scheduled banks are required to fix up in place two secure communication bring togethers, one with BACH Headquarter at Motijheel and another with the BACH Disaster Recovery Site (DRS) at Mirpur. The coat and scalability of these associate will depend on each banks mode of operation and daily volumes. It is preferred that banks acquire fibre optic link and another redundant communication link with BACH at Motijheel and DRS at Mirpur, Dhaka. 4.Participating banks are required to accomplish the following 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 T est (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 operating(a) specifications is to provide an initial 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) Specification 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 available at our website. 6. It is, therefore, advised that member banks update their preparations to be in step with the progre ss of the implementation of the BACH. The BACPS rules and procedures will be forwarded to you in due course. Please acknowledge receipt. ( Chowdhury Mohidul Haque ) Executive Director, Bangladesh Bank and Project Director, RPP Project Tel 7167988, Fax 7164233 Email chowdhury. emailprotected org. bd