WELCOME

E-CHEQUE

E-CHEQUE
Recent years have seen a tremendous
increase in e-commerce transactions. The
success of e-commerce relies on developing
adequate payment technologies. One such
technology is e-Cheque.
An e-Cheque is an
electronic document which substitutes the
paper check for online transactions. Digital
signatures
(based
on
public
key
cryptography)
replace
handwritten
signatures.

Definition of 'Electronic
Cheque'

A form of payment made via the internet that

is designed to perform the same function
as a conventional paper cheque. Because
the cheque is in an electronic format, it can
be processed in fewer steps and has more
security features than a standard paper
cheque. Security features provided by
electronic cheque include authentication,
public key cryptography, digital signatures
and encryption, among others.

 The e-Cheque is compatible with interactive

web transactions or with email and does not

depend on real-time interactions or on third
party authorizations. It is designed to work
with paper cheque practices and systems,
with minimum impact on payers, payees,
banks and the financial system.
Payers and payees can be individuals,
businesses, or financial institutions such as
banks. E- Cheques are transferred directly
from the payer to the payee, so that the
timing and the purpose of the payment are
clear to the payee

 The payer writes an e-Cheque by

structuring an electronic document

with the information legally required to
be in a cheque and digitally signs it.
The payee receives the e-Cheque over
email or web, verifies the payer's
digital signature, writes out a deposit
and digitally signs it.

 The payee's bank verifies the payer's

and payee's digital signatures, and

then forwards the cheque for clearing
and settlement
The payer's bank verifies the payer's

digital signature and debits the payer's

account

PAYER PROCESS
In order to send a cheque, the client

simply fills out a standard e-cheque.

The system allows clients to define
common payees in order to speed the
e-cheque creation process.
When the cheque has been written it

can be easily transferred from the

payer to the payee over a secure echeque channel.

 This secure channel will be

established between the payer and

the payee before the transaction
begins.
The e-cheque is automatically signed
by the user using his private key
based on RSA algorithm and SHA128; this ensures the authenticity
and the integrity of the e-cheque

PAYEE PROCESS
When the payee receives the e-

cheque he can open and view it

using the e-cheque system.
In order to deposit the cheque, the

payee simply connects to the bank

(which is expected to provide echeque services) and uploads the echeque to his bank account.

 Once the bank receives the e-

cheque, it will decrypt it using the echeque system.

After clearing (i.e. verifying both the
cheque signature and account
balance) with the payers bank, the
payees account will be credited
accordingly.

BENEFITS OF E-CHEQUE
TO CUSTOMERS;
No physical movement of cheques so no

fear of loss of cheque in transit.

Quicker clearance; within 3-4 working days.
Its more secured than physical cheques.
Decrease errors and fraud. eCheques reduce
the potential for errors and fraud because
fewer people handle them.
They can serve corporate markets. Firms
can use them in more cost-effective manner

Benefits to Bank

Reduce the risk associated with paper

clearing
Superior verification and reconciliation
process
No geographical restrictions
No physical movement of cheques- it
saves cost and time for banks.
No chance of cheque dishonor- The risk is
taken care of by the accounting server,
which will guarantee that the cheque
would be honoured.

 Well suited for clearing micro

payments
Reduce processing costs by up to 60%.
E-cheques require less manpower to
process and dont come with any
deposit or transaction fees. As a result,
processing an e-cheque is generally
much cheaper than processing a paper
check or credit card transaction.

 Work smarter and greener.; Electronic

check conversion is easy to set up. It

relies on the trusted ACH Network. And
eChecks help reduce the more than
67.4 million gallons of fuel used and
3.6 million tons of greenhouse gas
emissions created by transporting
paper checks
ACH Automated Clearing House.

DRAW BACKS
Customer education
Chances of misuse, hacking etc
Need a different infrastructure
Unauthorized transactions becomes

challenge for banks

 Problem could be when there is more

than one signer or endorser.

Transactions based on internetnetwork failure may lead to delay in
payment.
Both payer and payee should have echeque facility.

In India the e-cheque facility is now

replaced by CTS- Cheque Truncation
System 2o1o. Where there will be a
physical cheque which will be
converted into e-cheque by scanning
and transferred for clearance. And
the time taken for clearance is 24hrs.

THANK
YOU>>>>>>>>