Secure Online Digital Cheque Clearance Using Blockchain

Abstract: By employing a scanned image of the check and information from a Magnetic Ink Character Reader (MICR) device, the Cheque Truncation System (CTS) technique simplifies the handling of checks electronically without actually exchanging or moving the financial instrument. 1,50,000 branches are covered at the time. As of September 2020, 1,219 non-CTS clearinghouses (ECCS centres) had been converted to CTS. Currently, there are around 18,000 bank branches that lack any kind of formal clearing agreement. This study offers an automatic fix for the aforementioned issues that any Indian commercial bank could use. All banks that are interested in taking part must join to the proposed block chain-based system in order to offer their clients faster cheque clearance. The proposed system is based on the block chain. One of the key technologies used to build the system was Ethereum. It strengthens the system's integrity and benefits both the bank and the customer by accelerating and simplifying the clearing of checks while boosting security. Additionally, it contributes to a quicker and more precise system for detecting cheque fraud, which benefits both the user and the bank by providing a safe, effective, and environmentally friendly solution. Last but not least, it makes it possible for the payer and payee to clear checks directly in a continuous stream.

Keywords: blockchain, cheque, fraudster, image processing, OTP