End-to-end AI-based automation for data extraction, verification, and validation is supported by the izCHQ solution having a high-speed processing engine.
Business Need
Bank cheque processing, involving verification of both inward and outward cheque images, is currently performed manually through the cheque processing system. This includes data entry, verification, and approvals. The manual process is highly time-consuming and requires intense focus from employees to minimize errors and avoid financial risks.
With a high volume of cheques—many of which are high-value transactions—banks are under pressure to meet strict deadlines driven by continuous clearing cycles. Cheque images can be either handwritten or printed, adding complexity to data interpretation. Additionally, various cheque types such as post-dated cheques (PDC), stale cheques, and outward cheques need to be identified and processed accurately.
The current system increases the human errors, leading to rework and operational inefficiencies. Financial risk further escalates when LAR-CAR mismatches or signature mismatches during signature verification requiring higher experience.
Solution
An AI-powered izCHQ automates the end-to-end process flow for inward and outward cheque transactions. In template-free solution, it extracts key details like payee name, amount (figures and words), date, MICR details, and account number from cheque images. It categorizes cheques as PDC, stale, or inward/outward. It also extract cheque backside information, such as the mobile number. Bank deposit slip can be processed separately using the slip processing module. Printed drawer name can be extracted as part of narration.
The AI platform handles LAR-CAR matching by cross-verifying amounts in words and figures, flagging discrepancies to minimize errors. The automatic signature verification (ASV) module matches cheque signatures with reference signatures from signature cards. Real-time AI and rule-based validations ensure reliable processing before approval. Aligned with bank clearing cycles, it supports continuous cheque clearing in high volumes to meet strict timelines.
In addition, the izCHQ maintains a comprehensive audit trail of every transaction which is useful for operational dashboard and reports. The AI platform also supports easy manual intervention (maker-checker) to review contextual data based on the colour coding to support decision-making. The AI-based solution is designed to scale easily and can be deployed either on-premise or in cloud environments, providing flexibility for different IT infrastructures.
izCHQ Benefits
Assess & Mitigate Risks
Automated Data Validations and Rules
4-10x Productivity Gain
Time Savings & Faster Processing
Accelerated
TAT
Speed and Process Efficiency
Avoid Manual
Errors
35 to 40% Reduction in Errors
izCHQ Solution Features
Data Extraction
Auto-extraction of data from cheque images
PDC & OC
Auto-identification of PDC and outward cheques
Amount Matching
Matching of the amount in figures and words
Identify Sign
Automatic signature verification
Fast Processing
Fast job processing engine for high volume documents