Professional Documents
Culture Documents
Internship Report On Electronic Cheque Clearing.
Internship Report On Electronic Cheque Clearing.
()
Where, n= time period in years
i = interest rate (%)
Interest rate is taken as 5% and the annuities or life span (n) is taken as 5yrs for
vehicle, 10 yrs for the software used in ECC, and 4 yrs for cheque scanner. The result
obtained from this has been used to analyze cost incurred to HBL in clearing cheques
using past manual with ECCS. Effectiveness of ECC in terms of cost is analyzed with
this technique.
4. Tools Used:
MS Excel has been used for calculation of data provided by HBL and data collected
from other secondary sources. Statistical charts like bar diagrams and pie charts have
been used to represent the data and aid the presentation and analysis.MS Word has
been used to prepare and present the report.
28
Section IV: PRESENTATION AND ANALYSIS OF THE PROJECT
1. Analytical Presentation of the project
Cheques represent a significant segment of non-cash payment instruments in Nepal,
as consumers and businesses remain confident and satisfied with writing cheques.
Today, on an average 8000 interbank cheques are cleared and settled daily of which
70% consists of commercial banks, 15% of Development Banks and 15% of other
financial companies. The development of cheque processing system makes a
fundamental relevance to banks and other financial institutions due to this wide spread
use of bank cheques in daily life. The following figure shows the composition of
cheque cleared by BFIs of Nepal.
Figure2: Composition of Inter-bank Cheque cleared by BFIs (in %)
From above pie chart it can be seen that most of the cheque transactions are done by
the commercial banks. It comprises of the 70% of the overall cheque cleared. Among
the total of 8000 interbank cheque clearance 5,600 cheques consists of commercial
banks and 1200 each of development banks and other financial institutions. Therefore,
the development of interbank cheque clearing process is more relevant for
Commercial Banks, compared to other BFIs.
Out of 5,600 cheques cleared by over all 32 commercial banks around 1000 cheques
are presented by HBL. The composition of cheque presentment made by HBL with
respect to other commercial banks of Nepal is shown in figure below:
Commercial
Banks:
70%
Development
Banks:
15%
Other
Financial
Institutions:
15%
29
Figure3: Cheque Presented by HBL (in %)
From the above pie chart we can see that among the 5600 interbank cheques cleared
by commercial banks, 1000 cheques are presented by HBL for payment which
contributes to 17.86% of the total. Since HBL is one of the biggest commercial bank
of Nepal, the number of cheque cleared per day is one of the highest figures among
other banks.
HBL has adopted ECCS for inter-bank cheque clearance replacing the manual system.
The over view of these two system in cheque clearing are presented and analyzed.
A) Manual Cheque Clearing System:
Under Manual cheque clearing system, financial institutions (presenting banks) used
to collect cheques of other institutions (paying banks) and physically take the cheques
to NRB for clearing. The clearing process used to take place in the main hall of NRB,
Thapathali, cheques had to be physically transported to the central banks clearing
office where tables were placed for every bank, the staffs there used to clear the
cheques then permit the banks to make and receive transfers.
In inward cheque clearing, unauthorized cheques used to be physically located, and
the reasons for rejection were written on the cheque, prior to the cheques being
prepared for return to the bank of deposit. Cheques had to be forwarded for a manual
HBL:17.86%
Others :
85.14%
30
process of technical verification, signature verification and posting verification. This
manual cheque clearing took two to three days for a cheque cycle. In the case of
outward cheque clearing, cheques had to be collected from branches; all cheques were
manually separated by the teller; all items had to be manually posted on the claim
sheet.
In HBL, inward cheque clearing was handled by three branches: New Road branch,
Patan branch and Maharajgunj branch, where as outward cheque clearing performed
by all branches of HBL. All the Cheques were taken to NRB at 11:00 am for
clearance. The earlier days cheques from different bank which came for clearing at
HBL were distributed to other banks accordingly as per cheques indication.
Dishonored cheques were returned and the relative amount deducted from NRBs
advice report. The advice of NRs and foreign currencies from NRB were taken and
the debited amount of respective banks was matched with the credit amount of NRB.
HBL cheques were detached and differentiated according to HBL branch cheques and
advice was provided to HBL branch and one copy submitted to NRB representing
HBL name and date of clearance. Paper work and manual effort were highly involved
in this system of clearing.
Fee Structure for Manual Cheque Clearing:
BFIs had to pay membership charge and annual renewal charge to NRB for clearing
and settlement of interbank cheques .The membership charges and renewal charges
for each category of BFIS is shown in the following table:
Table 3: Fee Structure of Manual Cheque Clearing for BFIs
Financial Institute
Initial Membership fee Annual renewal fee
Commercial Banks 1,000,000 20,000
Development banks 50,000 10,000
Finance Companies 25,000 5,000
Source: (Basnet, 2012)
We can see from the table that the membership fee and annual renewal fee for
commercial bank is the highest among other BFIs. The difference in fee charged by
31
NRB is due to difference in capital structure and operation. Apart from these fees, the
other costs incurred by BFIs are cost of vehicle, operation and running cost.
Transaction cost for HBL:
The transaction cost for a commercial bank like HBL includes the initial membership
fee, annual renewal fee and other costs like vehicle and operation cost. The annual
total cost for 280,000 cheques cleared for HBL is presented in the table below:
Table 4: Transaction Cost for Manual Clearance in HBL
Description Fees/Cost (Rs) Annual Fee (Rs)
Annual Fee 20,000 20,000.00
Membership Charge 1,000,000 129,504.57
Vehicle 1,200,000 277,169.76
Operating and Running Cost 50000/month 600,000.00
Total Cost 1,026,674.33
Cost per Transaction 3.67
The above table indicates that the total cost for manual cheque clearance for HBL is
Rs. 1,026,674.33. The annual fee and membership fee is as per the regulation by NRB
as mentioned previously (Table: 2). The initial vehicle charge is Rs. 1,200,000 and the
annual charge is Rs. 277,169.76 which is obtained by using CRF. The annual
operating and running cost is Rs. 600,000. Hence the total cost is obtained. Further,
the cost per transaction is also calculated which amounts to Rs. 3.67 per transaction.
Weakness of Manual Cheque Clearing:
As cheques had to be taken to NRB, transportation cost incurred in manual clearing
system is major drawback. On the other hand it consumed more time and difficulty to
customers as they had to wait for long periods of time for transactions to show up in
their account balance.
Once cheque is deposited the cash would get transferred into the depositors account
after two to three days inside the valley, in the case of cheque issued from remote
places it would take weeks, sometimes a month, leading to high number of unsatisfied
customers. Moreover, this method was subject to errors and chance of misplace of
cheques due to insecure physical transportation of cheque. In order to have an
32
effective and efficient system, it is essential that participants can handle transactions
easily with minimum cost with the use of new technology.
B) Electronic Cheque Clearing System:
Replacing the manual cheque clearing system and stopping the physical movement of
paper cheques among the BFIs, today cheques are cleared electronically in Nepal. As
per the direction of NRB, BFIs switched to electronic means to clear cheques and
followed electronic cheque clearing system via NCHL. According to the Operating
Rules based on the Rule Book issued by the NRB (Electronic Cheque Clearing
Operating Rules published on June 2011) the Members of NCHL perform their daily
cheque clearing operation using ECC. Moreover, briefing was provided regarding the
use of software to the members at national banking Training institute training hall on
4
th
April 2012.
The software used by BFIs for the online cheque clearing is based on Jordan software
developing company ProgresSoft Corporation. The software was developed for
Cheque Truncation System (CTS) in Nepal as per agreement with NCHL. NCHL and
the BFIs have installed the software to carry out ECC. NCHL is responsible for
managing the software, for which it charges certain amount of fees. However, NRB
continues to settle the cheques after the clearance, as all the BFIs have their accounts
in NRB. NRB will debit or credit the accounts of concerned banks electronically.
Initial cost of Installation and Annual membership charge:
The cost of software (ProgreesSoft Software) installation of ECC differs according to
the type of financial institutions. The difference is due to the different capital structure
of each bank. Commercial banks must pay the highest software cost as it has
comparatively large capital base. The second highest cost is bear by the development
banks and the finance companies bear the lowest. Similarly, yearly membership
renewal fee also differs for these three financial institutions.
The following table shows the software cost and yearly membership renewal fee for
commercial banks, development banks and finance companies.
33
Table 5: Initial cost of Installation and Annual membership charge for ECC
Members
Software cost Annual renewal fee
Commercial Banks 14.47 lakhs 2.50 lakhs
Development Banks 12.03 lakhs 2 lakhs
Finance Companies 9.04 lakhs 1 lakhs
Source: (Basnet, 2012)
From the above table, we can see that the commercial banks bear the highest software
cost which is Rs. 14.47 lakhs. Development banks have to pay Rs. 12.03 lakhs and
finance companies must pay Rs. 9.04 lakhs. Similarly, among the three financial
institutions, commercial banks need to pay the highest renewal fee of Rs. 2.50 lakhs
whereas development banks pays 2 lakhs and finance companies pay 1 lakhs. Along
with the software installation and annual membership fee the presenting bank will
have to bear the service charge for clearing.
The service charges are divided according to 6 categories of cheques. NCHl has fixed
the charge amount accordingly and is same for all types of BFIs. The following table
shows the charges for different categories by NCHL.
Table 6: Cheque Clearing Charge paid by Presenting Bank
Rupees
Per cheque Transaction charge
Up to Rs 500 Free
Rs 500 to 5,000 Rs 5
Rs 5,000 to 10 corers Rs 10
Foreign Currency Rs 15
Express Session Rs 100
Cheque Return Rs 100
The costs for cheque presentment through NCHL-ECCS for different ranges and types
of cheques for inter-bank payment are mentioned above. Cheques amounting up to
Rs. 500 are not charged whereas cheque amounting more than Rs. 500 is charged
according to the range of charges fixed by NCHL. For foreign currency cheques Rs 15
is charged, similarly for express session cheques and Returned Cheques Rs 100 is
charged.
34
Therefore, the total costs that banks and financial institutions have to bear while
operating ECC includes: initial fee to obtain membership from the clearing house;
software installation cost, login fee (user fee 3000 per user), annual renewal fee and
transaction cost as per categories.
ECC in HBL
HBL started its ECC operation from April 2012. After the replacement of manual
cheque with electronic, the inward cheque clearing of HBL is centralized to the main
branch situated at Thamel. The cheques presentment and payment are made online by
the four users and the timing for presenting and payments of regular and express
cheques are different as shown in Appendix 3.
With the ECC system the cheque clearing cycle has reduced but number of cheque
transaction has not shown a significant change which is 1000 cheques on an average
per day. The analysis of the cost of ECC in HBL is done by taking 280,000 cheques
presented by HBL on an average in its 280 business days.
Indirect Cost per transaction
The indirect cost of ECC for HBL includes the cost of software, user cost, scanner
cost and operation and maintenance cost. The cost is calculated in the following table:
Table 7: Indirect Cost per Transaction
S.No Cost Description Initial Cost Annual Cost Remark
1
Cost Of
Software
1450,000 187,782 CRF = 0.129
2
Users cost
4 users @ Rs
3000/each
12,000
3
Scanner Cost
4 scanners @
Rs35000/each
140,000 39,482 CRF = 0.282
4
Operation and
Maintenance
cost
30% of above
71,779
5
Total
280000
transactions
311,042
6
Cost per
Transaction
1.11
In the above table, the annual indirect cost incurred to HBL using ECCS is presented.
The indirect cost includes: Cost of installing Progress Soft software, user cost, scanner
cost and operation and maintenance cost. Cost per user (login fee) is Rs3000 per user
35
and cost per scanner is Rs 35,000, as clearing is performed with 4 user accounts and 4
scanners are used, each is multiplied by 4. Annual operation and maintenance cost
which is 30% of software, user and scanner cost is Rs 71,779. Therefore total indirect
cost for 280,000 cheques cleared annually is Rs 311,042 and transaction cost per
cheque is Rs 1.11 approximately.
Total cost per Transaction
The total cost per transaction includes the indirect costs and direct cost of ECC. The
indirect cost is derived from Table: 6, whereas the direct cost is derived from Table:
5.The total Cost of transaction according to the categories of cheques for HBL is
shown in the table as follow:
Table 8: Total Cost of Cheque Transaction
Categ Items Charge
(a)
No. of
Transacti
-on (b)
Direct
Cost
(c=a*b)
Indirec
t cost
(d)
Total
Cost
(e=c+d)
T.C per
cheque
(f=e/b)
1
Up to Rs
500
Free 112,000 0
124,417
124,417 1.11
2
Rs 500 -
5000 5 53,200 266,000
59,098
325,098 6.11
3
Rs5000 -
10 corers 10 89,040 890,400
98,911
989,311 11.11
4
Foreign
Currency 15 16,800 252,000
18,663
270,663 16.11
5
Express
Session 100 5,600 560,000
6,221
566,221 101.11
6
Cheque
Return 100 3,360 336,000
3,733
339,733 101.11
Total 280,000 2304,400
311,042
2,615,442
9.34
The Table: 7 illustrate that cost of transaction for six categories of cheques using
ECCS. The direct cost (c) of each is calculated by multiplying the charge amount (a)
of each item with its no. of transactions (b). The indirect cost of each item has been
calculated by multiplying the no of transactions with the indirect cost per transaction
Rs. 1.11 (approx). Further, the total cost (e) is the addition of direct cost and indirect
cost. The transaction cost per cheque is the result of dividing the total cost by no of
transaction.
36
We can see that the highest cost per transaction is for express session and cheque
return which is Rs.101.11 per cheque. The lowest cost per transaction is for cheque
amount upto 500 which is Rs. 1.11 per cheque. The cost per transaction for the total
280000 cheque is Rs. 9.34.
The following figure illustrates the total cost of transacting the six categories of
cheques in HBL.
Figure4: Total Cost of clearing in HBL with respect to Cheque Categories
From the above bar diagram, we can see that Category 3 (Rs.5000 to Rs 10 corer) has
maximum cost Rs 989,311 i.e. 38 % of total cost followed by Category 5 (Express
session) i.e.21.5%. The minimum cost per transaction is for Category 1 which is Rs.
124,497 (4.76 %).
We can further compare the number of transaction and the cost of each category to
find out the categories that is costly to the bank. The following figure helps in the
analysis.
Figure 5: Cost and Transactions vs. Cheque Categories for HBL
124,417
325,098
989,311
270,663
566,221
339,733
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Up to 500 500 to
5000
5000 to 10
corers
Foreign
Currency
Express Cheque
Return
37
From the above figure, it can be illustrated that although the number of transaction of
cheques for category 1 (up to Rs 500) is highest in HBL with 112000 transactions; the
cost incurred is Rs 124417 which is lowest among other categories. In the other hand,
the total cost of category 5 (Express Session) is the highest among others amounting
to Rs. 566221 with the lowest no. of transactions of 5600 cheques.
Similarly, category 6 (Cheque return) has the second highest cost of Rs. 330733 with
the lowest no of transaction of 3600 cheques. We can clearly see through the figure
that category 1 and 2 i.e. cheques amounting up to Rs500 and cheques of Rs500 Rs
5000 respectively cost effective whereas the category 5 and 6 i.e. Express cheque and
Cheque return respectively is the most costly categories for HBL.
C) Cost Comparison of ECC and Manual Clearing of HBL:
1 2 3 4 5 6
Total Cost (NPR) 124417 325098 989311 270663 566221 339733
No Transaction 112000 53200 89040 16800 5600 3360
0
20000
40000
60000
80000
100000
120000
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
T
r
a
n
s
a
c
t
i
o
n
s
(
N
0
s
)
Categories
T
o
t
a
l
C
o
s
t
38
One of the methods for comparing the two payment system is through its cost
incurred in transacting through these two systems. The total number of cheques
presented in a year for both manual and ECC is taken as 280,000. The total cost of
manual clearing for HBL amount to Rs. 1,026,674.33 as per Table: 3, whereas the
cost of ECC for HBL is Rs. 2,615,442.28. The same can be seen in a table and figure:
Table 9: Comparison of total cost of ECC and Manual Clearing in HBL
Cost for Transaction
Description Manual ECC
Total Transaction Cost 1,026,674.33 2,615,442.28
Cost per Transaction 3.67 9.34
Figure 6: Comparison of ECC and Manual cost for HBL
(Cost in thousands)
The above table and figure clearly illustrates that the cost of ECC is much higher than
that of manual payment system. The cost of ECC is 2.55 times greater than manual
payment system. The cost of ECC is high as in the installation charge of software and
membership fee is high. Moreover, cost of cheque return and presentment of express
cheque is high for ECC. As ECC is in its early stage, the cheque clearing using this
system is costlier; however apart from cost perspective there are other benefits in
earnings of ECC. For the cheque return and express cheques bank can charge Rs 100
and Rs 250 respectively. Although these two categories of cheques consists small
1,026.67
2,615.44
- 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00
Manual
ECC
39
proportion of overall cheque categories if number of express session and foreign
cheques increases banks can earn after payning to NCHL for providing with ECC
software.
Issues Related to Cost of ECC:
As the cost of using ECC is much higher than manual cheque clearing, the financial
institutions with lower capital base and fewer transactions of cheques had debate upon
whether to return back to manual clearing. Software cost and other charges were too
expensive, so in the beginning only few commercial banks were ready to become
NCHLs member.
After the implementation of ECC, commercial banks like HBL joined the
membership. But finance companies and development banks had expressed serious
reservation over other costs such as membership fee, software procurement, network
connectivity, renewal fee, annual maintenance fee and login fee. The associations of
finance companies and development banks agreed that the system up gradation is very
important, but the cost associated was beyond their affordability. This is one of the
reasons financial institutions merge with larger commercial banks. As per the rule,
customers are not charged in normal cheque transactions hence the organization
themselves must cover the expenses.
D) Effectiveness of Electronic Cheque Clearing:
Although the cost of software and operation cost using the new technology was a
major issue in the beginning, realizing the long term benefit of in terms of efficiency,
customer satisfaction, accuracy, security and easiness banks and financial institutions
of Nepal are adapting to this system.
Even though the cost per transaction using ECCS is higher than manual clearing
system, benefits of the electronic medium for cheque clearance will be directly felt by
the end customers, as well as banks and the economy as a whole; customers get their
cash on the same day, or even within two hours, from the time of depositing their
cheques. Meanwhile, Banks will achieve customer satisfaction due to faster clearing
40
cycle, while enjoying lower operational costs, improved efficiency, and lower risks
associated with cheque payments.
With NCHLs online system sending cheques from one bank to another by scanning
cheques consisting of NRs, USD, Sterling Pound or Euro made the clearing process
easier and faster. The entire process is completed in real time i.e. payment transaction
is not subjected to any waiting period. The transactions are settled as soon as they are
processed. Once processed, payments are final and irrevocable. According to the type
of session, in scheduled time (Sunday to Friday) Outward and Inward Cheques are
verified and the status of cheques are send to associated institution on time.
Efficiency in terms of security: Daily transaction of debit and credit amount
summary (net clearing position) is send by NCHL to NRB. This summary through
Networking Center NRB sent email to financial institutions about final settlement
position daily. This helps to maintain record in system itself, no need to keep record
in books. NCHL only performs inward and outward of cheque through its system
(Progress Soft Electronic Cheque Clearing System). The calculation in NCHL is
automatic therefore the end balance or final settlement of banks is not known to staff
of NCHL as well. Therefore confidentiality regarding the net balance is maintained.
Cheque images are transferred securely between the banks and NCHL by the use of
the Public Key Infrastructure (PKI), which ensures security in system.
Moreover, using the system cheque returned are also informed in the same day with
the reason, hence the institution can react quickly and minimize loss, and most
importantly, financial institutions can increase productivity of employee freeing them
from manual tasks, and making their work smooth and systematic through the use of
technology.
41
2. Major Findings
The ECC system with the main emphasis on reducing the manual efforts made the
cheque clearing process of banking and financial institutions smoother than the
previous one. The major findings from the analysis are:
Cheques are still used as popular mode of non cash payment in Nepal, 70% of
cheque transaction is done commercial banks. HBL holds 14.3 % transaction of
the total 5600 cheque transaction maintained by commercial banks.
With the electronic cheque clearing system, beneficiarys account gets credited
the same day on which the paying account gets debited, resulting faster clearing
cycle. It has enhanced the better customer service. ECC extended to the entire
country, out of valley cheque also cleared on same day.
With NCHLs online system sending cheques from one bank to another by
scanning cheques made the clearing process easier and faster. The entire process
is completed in real time i.e. payment transaction is not subjected to any waiting
period.
Unlike manual cheque, clearing ECC eliminate trips to the bank to make interbank
cheque deposits, it saves transportation cost and avoid chances of loss of cheque
on the way. Increased accuracy of scanning also saves time of fixing errors as
well. Moreover, the records of every transaction through cheques are stored in the
system itself. Hence, documentation in books is minimized.
In HBL, cheque ranging up to Rs. 500, which are usually dividend cheque cost the
least for the bank as it has the highest transaction. It contributes only 4.8% of the
total cost. Highest cost is incurred by category 3 cheque (Rs 5000 to 10 corer), the
cost incurred in this category is 37.8% of the total cost in cheque presentment and
number of transaction for this category is 31.8 % of the total.
In HBL, cost per cheque transaction through ECC is 2.55 times more than manual
clearing system. But ECC is effective in terms of real time gross payment and
settlement, elimination of transportation cost and centralized inward clearing.
42
Section V: CONCLUSIONS AND RECOMMENDATIONS
From the analysis and the major findings of the research project, the conclusion can
be drawn that commercial banks are benefited more by the advancement in cheque
clearing system than financial and development banks, so they are charged less by
NCHL. The Progress Soft software cost is higher than overall capital of many
financial institutions, encouraging them to merge with big banks after NRB made
ECCS mandatory to all BFIs.
With same day clearing system and RTGS the interest earned in holding cheque is
reduced while interest earned in cheque presentment increases. The analysis presented
regarding cost per transaction of different ranges of cheque presented by HBL, can be
used by policy makers to come up with cost benefit analysis and structure charges for
foreign and express session cheques. As per the rule of NRB for regular cheque
clearing customers should not be charged.
The use of new technologies in daily operation of banking transaction is essential to
increase efficiency and meet up the international standard. The transactions of
cheques before and after the use of electronic clearing have not shown much
difference; as ECC is in its early stage, only the cheque clearing cycle has reduced. In
future with the use of MICR cheque the work load of the staffs in clearing will
reduce, moreover error that occurs in presenting cheques will also reduce.
Moreover, the cutoff time and settlement time is just single time a day for regular
cheques which creates rush; if it is done twice a day then there will be low pressure in
cheque clearing section.
The electronic cheque clearing system here in Nepal is not completely automated like
in other developed countries so it is termed as electronic cheque clearing system
instead of automated cheque clearing system.
The world is moving on the technological advancement, and Nepalese banks and
financial institutions lack this, and therefore the bank should take an opportunity for
prosperity and development. HBL with other financial institutions with the
involvement of NRB should adapt to these changes to modernize the banking sector.
The use of innovative technology can make the work of bank and financial
institutions more effective and efficient.
43
PART FOUR
REFLECTION OF INTERNSHIP
As my main objective of internship was to gain insight knowledge of the organization
culture and become familiar with banking practices, this internship helped me getting
acquainted with the organization culture and exploring different kinds of works that
takes place in various departments I worked in. The lessons and theories learnt in
classroom is not enough, one must be able to apply those knowledge while
performing real work. Working in the field was an opportunity to develop skills. The
skills like dealing with customers, handling pressure, developing inter personnel
skills, time management and organizing skills developed within me during the process
learning by doing.
Working in the bank for the first time was like entering into new world but as the days
passed the environment seemed familiar getting to learn about banking terms. The
knowledge and skills acquired would obviously help me in near future.
The main objective of this report was to explore how electronic cheque clearing
differs from manual and what make it effective. General overview of ECC in Nepal
has also been presented in this report. I believe that the objective of this report has
been achieved through the work experienced gained from the internship completed at
HBL and the research taken on electronic cheque clearing.
Apart from the completion of this report, from the internship program I have acquired
skills such as teamwork and patience to work in professional environment. Overall,
internship program was one of the best learning experiences. It also helped to realize
my potential. This program was a learning phase and the lessons learned and
experiences gained will help me in my career.
44
REFERENCES
1. Basnet, B. (2012). Electronic Cheque Clearing and NRB, by Bhuwan Basnet. 7.
2. NRB. (2067_ 68). 2067_68--Circular_26- Attachment- Nepal ECC Operating
Rules. Nepal: NRB.
3. NRB. (2011). Nepal Electronic Cheque Clearing Rule Book. Kathmandu: NRB.
4. Shilby, H. H. (2011). An Extended tam Modelto Evaluate Use's Acceptance of
Electronic Cheque Clearing System at Jordian Commercial Banks. Australian Journal
of basic and applied Science , 10.
5. Himalayan B. (2010-2011, 2011-2012), Annual Report, 19
th
& 20
th
.
6. David B. Humphrey. (2012). GETTING RID OF PAPER: SAVINGS FROM
CHECK 21. Retrieved May20, 2013 from http://www.philadelphiafed.org/research-
and-data/publications/working-papers/2012
7. Calisir & Gumussoy, (2008); Agarwal et al, (2009)
8. NRB Circular Ref No C.H. ECC/95/067/68 (2068-01-27)
Appendix 1
Organization Structure of HBL
Chief Executive Officer
Senior General Manager
General Manager
Marketing and Credit
General manager
Operation
Executive
Credit Officer
Executive
Marketing
Officer
Executive
Administrative
Officer
Executive
Operating
Officer
Executive
Financial
Officer
Branch
Manager
Executive
Recovery
Officer
Executive
Human
Resource
Head Office
Risk
management
IT and SWIFT
Dept
Department
Heads Legal and
Shares Dept
Marketing /
Administrative
Recovery/
Loan
CMAD
Trade
Operation
Center
Customer
Service
Bills and
Remittance
Customer
Relations
Appendix 2
Interview Question with Personnel at HBL in Cheque clearing section
1. How many cheques are cleared by HBL on daily basis?
2. Since when HBL started using ECC for clearing Cheques?
3. How has ECC affected the work performed by staffs in clearing section in
HBL?
4. Has the work of cheque clearing section become easier than past?
5. Has the number of cheque presentment and payment made by HBL increased
with the use ECCS?
6. Why has HBL not come up with MICR cheque?
7. Do you think the fee charged by NCHL is reasonable?
Appendix 3
Timing of Regular Sessions (NPR, USD, EUR, GBP)
Standard Session Non-Standard Session
Presentment start time >14:00(T-1) >12:00 (T-1)
Presentment Cut-off time 14:00 (T+0) 12:00 (T+0)
Paying Bank Response cut-off time 15:00 (T+0) 15:30 (T+0)
Settlement of the session 15:30 (T+0) 15:30 (T+0)
Credit Customer Account 16:00(T+0) 16:00 (T+0)
Time of Express Session (NPR, USD, EUR, GBP)
Standard Session Non-Standard Session
Presentment start time 10:00(T+1) 10:00 (T+1)
Presentment Cut-off time 11:00 (T+0) 11:00 (T+0)
Paying Bank Response cut-off time 11:30 11:30 (T+0)
Settlement of the session 12:00 (T+0) 12:00 (T+0)
Credit Customer Account 12:20(T+0) 12:20 (T+0)