Automated cheque clearing system: tools and practices in Shahjalal Islami Bank Limited

Abstract

This report is my academic learning and practical observation of clearing system of bank. I have prepared this report on the ground of Shahjalal Islami Bank Limited (SJIBL). Since the inauguration in 2001, SJIBL has been able to keep up strong position in all key areas covering capital adequacy, good asset quality, sound management, good earning and strong liquidity. It has also been able to emerge as a leading financial institution with highest level of reputation in the country. SJIBL is governed by its Shariah board and is consider one of the largest 'islami' banks in Bangladesh. As it is consider that payment systems are a vital part of the economic and financial infrastructure of the country. Safe and efficient payment systems are critical for maintaining the stability of the overall financial system. The report is mainly focus on comprehensive study about the automated cheque clearing system, tools and mechanism required to operate the automated clearing system. It highlights the comprehensive benefit of automated system for different stakeholder like Bangladesh Bank, business people, commercial bank and the clients itself. In line with the Core Banking Solution, Shahjalal Islami Bank Ltd. has successfully implemented Bangladesh Automated Cheque Processing System (BACPS) as well as Bangladesh Electronic Fund Transfer Network (BEFTN) as per Bangladesh Bank Guideline. For betterment of Customers’ services, Bank has expressed and deployed different channels like ATM, POS, and Debit Cards etc. services. To make the Banking operation faster, easier, more efficient and even more effective to serve its valued customers on 24 hours a day, 365 days a year, Bank also provide the Internet and Mobile Banking facilities to their clients. Automated clearing system is a new horizon in the financial infrastructure development initiative in Bangladesh. Automated systems not only speed up the cheque processing system but also a directive for automation in banking and financial system in Bangladesh.