Project Topics | Seminar Topics | Related Topics
Automation of the Cheque Clearing System

AUTOMATION OF THE CHEQUE CLEARING SYSTEM


ABSTRACT

Cheque clearing system is a feature of electronic banking where by the transfer of funds from one account to another rather than by cash is done with the use of electronic devices like computers and scanners. The aim of the study is to design and implement an Automated Cheque Clearing System. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will access the significance of automated cheque clearing system and Eliminate identity difficulties and encourage development and integration of other electronic payment and settlement product. The motivation that led to the implmentation of the proposed system is that most customers' rough handle cheques issued to them from other banks which become difficult to scan and as a result needs to be cleared manually which is costly and time consuming on the part of the bank. The methodology adopted in this study is the object oriented analysis and design methodology (OOADM) which is a technical approach for analyzing and designing an application or system by applying object throughout the software development process. The programming language used is HTML, CSS, JAVASCRIPT, PHP, SQL and JQUERY. The reason why web programming languages was used is because, it is platform independent and it is a web based application. The implementation of the proposed system will helps people in community especially those who enjoy banking services by providing quick and faster service for them for instance when a cross cheque is drawn to any bank, the customer of collecting bank enjoy quick and faster payment. The expected result is an Automated Cheque Clearing System that will make the process of cheque clearing faster and efficient, and reduce the number of cheque clearing days, so that consumers will have the confidence and courage of the uses of non-instrument.


CHAPTER ONE

1.1 Introduction

Automatic Cheque Processing is one of the most widely researched areas in document analysis and biometric. Various methodologies have been proposed in this area for Automatic Cheque Processing and forgery detection. An account holder gives cheques to another person as account payee or self-cheque. The widespread use of bank cheques in daily life makes the development of cheque processing systems of fundamental relevance to banks and other financial institutions. Bank transactions involving cheques are still increasing throughout the world in spite of the overall rapid emergence of electronic payments by credit cards. Automatic bank cheque processing systems are hence needed not only to counter the growing cheque fraud menace but also to improve productivity and allow for advanced customer services. The automatic processing of a bank cheque involves extraction and recognition of handwritten or user entered information from different data fields on the cheque such as courtesy amount, legal amount, date, payee and signature.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.


1.2 Background of Study

The cheque clearing system is the means whereby bank exchange cheque drawn through clearing system. Clearing system on the other hand is the medium through which proceeds of cheques and other payment instrument are transferred from the paying bank to collecting bank. The Nigerian automated clearing system (NACS) which book-off on October 21, 2002 as a result of the time function that affects clearing system i.e before cheque is cleared. It involved much stretch in which cheque is not cleared at when needed.

The Central bank of Nigeria (CBN) act No 24 of 1991 empowers the apex bank to facilitating the clearing of cheque and other payment instruments. As a movement forward on the execution of the mandate (CBN) issued the Nigeria banker’s clearing house rule on January 2, 1995. In November 1995 (CBN) governor announced a plan for a dratie overall of the clearing system monetary transaction in Nigeria were largely based on cash and as such had inherent problems, such as security volume of paper its transport, currency sorting changing.

This state of affair creates the moving member of the public to non − cash payment instruments was hampered by the clearing processes, which was largely manual, the services to the customer was prior and cheque based on transaction were use prone to fraud “the clearing circle look between 5 to 15 working days.

The clearing process was very rowdy with too many banks participating on clearing. The process was frequently late in balancing the book and prone to human awor. This made it very difficult for central bank of Nigeria (CBN) to calculate and advise on the net settlement figures on time after the days clearing. Although many of the instrument had magnetic character recognition (MICR) code them the lack of automated meant that MIC code lines and infrastructure would not be used.

This meant a waste of consideration investment made in the form of magnetic link character recognition (MIRC) code line information processing infrastructure to fund solution to the problems a committee was set-up its report formed the basis of the banker’s committee decision on June 16, 1996 which approved the automated of the clearing process to more zone within the country with Lagos having more zones” reduce the number of clearing days to buster consumer confidence and encourage. The uses of non cash instrument also reduce number of clearing bank to make the process number of clearing bank to make the process more manageable, faster it was reasoned that automated would make used of [MICR] technology possible, which would further bring speed and efficiency into clearing processing with the potential to reduce the clearing float that introduce networking between the parties involved in clearing these was expected in unlock the benefit of electronic banking for Nigerians.

The system that is able to read cheque automatically would be very helpful, especially if it is fast and accurate. Even if misclassification occurs, the mistake could potentially be detected during the recognition process; however it is more desirable that the system rejects a cheque in case of doubt so that it can be directed to manual processing from the beginning. In order to produce a successful cheque processing system, many sub-problems have to be solved such as background and noise removal, recognition of the immense styles of handwriting and signatures, touching and overlapping data in various fields of information and errors in the recognition techniques (Vamsi et al., 2005).


1.3 Statement of Problem

Investigation revealed that most customers’ rough handle (twist or fold) cheques issued to them from other banks which become difficult to scan and as a result needs to be cleared manually which is costly and time consuming on the part of the bank. The problem of this study is to found out empirical analysis basically on applied research aimed at solving the immediate practical problems in the banking system.


1.4 Aim and Objectives of the Study

The aim of the study is to design and implement an Automated Cheque Clearing System. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will:

  1. Access the significance of automated cheque clearing system.
  2. Make the process of cheque clearing faster and efficient.
  3. Reduce the number of cheque clearing days, so that consumers will have the confidence and courage of the uses of non-instrument.
  4. Eliminate identity difficulties and encourage development and integration of other electronic payment and settlement product.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

  • Is automated cheque clearing system significant?
  • Can the process of cheque clearing be faster and efficient?
  • How can the number of cheque clearing days be cut down?
  • How can identity difficulty be eliminated to encourage development and integration of other electronic payment and settlement product?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

  • H0: Automated cheque clearing system is not significant.
  • H1: Automated cheque clearing system is significant.

1.7 Significance of Study

This study has important value to the academic it helps the student of Banking and Finance, Business Administration, Marketing, and Economics in our various institutions to have knowledge about the automated clearing system as part of their course or study when they get to the field so that it would not be strangled to them.

Community: It helps people in community especially those who enjoy banking services by providing quick and faster service for them for instance when a cross cheque is drawn to any bank, the customer of collecting bank enjoy quick and faster payment.

Society: The introduction of (ACS) growth and economy development in which society are the beneficiary.


1.8 Scope of Study

The scope of the research is focused on automation of cheque clearing system using First Bank PLC in Nigeria as a case study.


1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

  1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
  2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
  3. Research material: availability of research material is a major setback to the scope of the study.
  4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
  5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).

1.10 Definition of Terms

Cheque Clearing System: Is the process of moving a cheque from the bank in which it was deposited to the bank on which it was drawn, and the movement of the money in the opposite direction.


CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …


Procedure for Downloading the PDF (Docx) Material


Automation of the Cheque Clearing System can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.


Seminar Material Cost
₦3,000
Project Material Cost
₦5,000


Request Complete Material

Complete Material Chapters of Automation of the Cheque Clearing SystemClick here to request the Complete Material via WhatsApp including;
  • Preliminary Pages,
  • Chapter 1-5,
  • References and Appendix.



TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION

  • 1.1 Introduction
  • 1.2 Background of Study
  • 1.3 Statement of Problem
  • 1.4 Aim and Objectives of the Study
  • 1.5 Research Questions
  • 1.6 Research Hypothesis
  • 1.7 Significance of Study
  • 1.8 Scope of Study
  • 1.9 Limitations of the Study
  • 1.10 Definition of Terms

CHAPTER TWO

LITERATURE REVIEW

  • 2.1 Introduction
  • 2.2 Conceptual Review
  • 2.3 Operation of the Cheque Clearing System
  • 2.4 The Electronic Clearing System Procedure
  • 2.5 Theoretical Framework of the Electronic Cheque Clearing System
  • 2.5.1 Electronic Clearing System versus Manual Clearing System
  • 2.5.2 Benefits of the Electronic Clearing System
  • 2.5.3 Challenges of the Electronic Cheque Clearing
  • 2.5.4 Automatic Processing of Handwritten Bank Cheque Images
  • 2.6 Empirical Review of Related Literature

CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

  • 3.1 Methodology Adopted
  • 3.1.1 Problem Identification Using SSADM
  • 3.2 Analysis of the Existing System
  • 3.2.1 Dataflow of the Existing System
  • 3.2.2 Disadvantages Of The Existing System
  • 3.2.3 Weakness of the existing System
  • 3.3 Feasibility Study
  • 3.3.1 Economic Feasibility
  • 3.3.2 Technical Feasibility
  • 3.3.3 Operational Feasibility
  • 3.4 Analysis of the Proposed System
  • 3.4.1 Data Flow Diagram of the Proposed System
  • 3.4.2 Advantages of the Proposed System
  • 3.4.3 Justification of the Proposed System
  • 3.5 Functional Requirements
  • 3.5.1 Use Case Diagram Of The Admin / User Privileges
  • 3.6 Data Requirements
  • 3.7 High Level Model of the Proposed System

CHAPTER FOUR

SYSTEM DESIGN AND IMPLEMENTATION

  • 4.1 Objectives of the Design
  • 4.2 Cohesion and Decomposition High level Model
  • 4.3 Control Center / Overall Dataflow Diagram
  • 4.3.1 Proposed System Operation Flowchart
  • 4.4 System Specification and Design
  • 4.4.1 Input and Output Specification
  • 4.4.2 Database Specification and Design
  • 4.4.3 Data Dictionary
  • 4.5 Choice and Justification of Programming Language
  • 4.6 Program Documentation
  • 4.7 Implementation Techniques
  • 4.8 Programming Module Specification
  • 4.8.1 Installation
  • 4.8.2 Security Design Specification
  • 4.8.3 System Architecture
  • 4.9 Computer Hardware Minimum Requirement
  • 4.10 Software Requirement
  • 4.11 Personnel / User Training

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation

REFERENCES

APPENDIX A - “SOURCE CODE”

APPENDIX B - “OBJECT PROGRAM”


Disclaimer for Complete Material Utilization

The displayed research work titled "Automation of the Cheque Clearing System" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.


Frequently Asked Questions (FAQ)


Can the material for “Effect of Four Mode Application Techniques on Achievement, Retention and Multiple Intelligence of Students with Different Learning Styles in Biology” be used as a guide for Education Project?

Yes it can be used — This study investigated the effect of Four Mode Application Techniques (4MAT) on achievement, retention and multiple intelligences of students with different learning styles. To guide the study, nine research questions were posed and nine hypotheses were formulated and tested at 0.05% probability level. Quasi-experimental design was adopted for the study, specifically the non-equivalent control group design. The study was carried out in Abakaliki Local Government Area of Ebonyi State. A sample size of one hundred and thirty nine (139) SSII Biology students were used for the study. This sample was drawn using purposive sampling technique. Two groups of students were used for this study, they are experimental and control groups. The experimental group were taught using 4MAT and the control …


Can this topic “Attitudes of Parents and Teachers Towards Children with Learning Disabilities in Some Selected Special Schools” be used for Special Education Project?

Yes it can be utilized for research — This research work is designed to investigate on the attitude of parents and teachers towards children with learning disabilities in some selected special schools, area of Ogun State. This work attempts to find out the attitudes and solution to the attitudes of parents and teachers towards children with learning disabilities. The work also concerns in literature review, detailed analysis was made through collection of data, methodology, analysis findings, summary, conclusion, recommendation and references. …


Can the material for “Design and Implementation of an E-Learning Platform” be used as a guide for Computer Science (CS) Project?

Yes it can be used — Electronic Learning is a web-based environment that allows students to participate in live teaching and learning events without the need to travel. The aim of the study is to develop an Electronic Learning Platform using Computer Science Department in NOUN University as a case study. In achieving this aim, the following specific objectives were laid out as follows to design an application that will, provide alternative way of attaining education, facilitate the development of information technology, enhance examination and certification of students thereby improving the standard of education, reveal the use and technology of wireless network to the user, proffer solution to students whom because of nearness to institute and are unable to acquire knowledge that they need, and provide …


Can the material for “Modern Brass Fabricating Factory, with Emphasis on Display Techniques” be used as a guide for Architecture Project?

Yes it can be used — Brass is a metal composed primarily of copper and zinc. Copper is the main component, and brass is usually classified as a copper alloy. The color of brass varies from dark reddish brown to a light silvery yellow depending on the amount of zinc present; the more zinc, the lighter the color. Brass is a common copper alloy (Cu–Zn) and is widely used in daily life and industrial production because of its particular physical and mechanical properties, including its high thermal conductivity, low friction, good anti-corrosion ability, and good casting properties. The study reveals the following problems associated with the modern brass fabricating factory; Lack proper estimation of the chemical composition, mechanical, surface morphology and thermal stability of brass fabrication …


Can the material for “Capital Accumulation and Economic Transformation; A Development Strategy for Nigeria Economy” be used as a guide for Economics Project?

Yes it can be used — The advancement of the economic situation of a country is the main aim of the Government of the state. How the various Governments of the states go about this business of advancing the economic situation of the country has been an area of focus to many scholars. In analyzing how the Government fares in its pursuance of this lofty objective, the growth rate of the Gross Domestic Product of the, country is normally used as the major criterion for such analysis. This study is an extension of the existing views and theories on the subject. To accomplish this, the government fiscal actions, that is, its expenditures and revenue, are correlated to the Gross Domestic Product, to show how such Government fiscal actions …


Can the material for “Family Instability and Juvenile Delinquency” be used as a guide for Sociology Project?

Yes it can be used — The family as a universal social institution exists in all human society. It forms the basis without which no society can survive. It is from here the individual picks up a “self” through the process of socialization. Various factors have been associated with delinquency, but the most important is the quality of relationship between parents and children. Some observers of social life have argued that the family no longer functions as a useful social unit. The method employed for the study is the survey method and the purposive/judgemental sampling technique of the non-probability sampling method. Based on the data collected, we found that domestic violence does determine delinquency in children, that large family does not engender delinquency, that children who associate with …


Can the material for “An Online Crime Reporting System” be used as a guide for Computer Science (CS) Project?

Yes it can be used — An ideal society is governed by laws and measurable consequences are meted out to any member of the society that is found guilty of law breaking. Customarily, members of the society are expected to report any incidence of breakdown of law and order to the appropriate law enforcement authorities. In time past, the process of reporting crimes in the society (Nigeria) had involved going into any of the offices of the law enforcement agencies (e.g. Police, neighborhood corps) to make a report, which made anonymity next to impossible. But the advent of technology opened more avenues for reporting crimes; from telegraph, special radio communication, and dedicated phone lines to a more responsive and more pervasive technological application platforms (web and …


Can this topic “Construction of Kerosene Cooking Stove” be used for Chemical Engineering Project?

Yes it can be utilized for research — The purpose of the construction is aimed at producing heat energy for commercial use by turning liquid fuel (kerosene). The construction was successful by appropriate selection of engineering material favourably mild steel (blacksheet) and steel iron for special parts. The technological properties passed by the chosen mild steel are; machinability, weldability,durability,and formability. Mechanize properties include mallebillity, duetility, static strength and high tensible strength. The sequence of operation followed by the construction are ;Literature review, material selection fabrication evaluation and possible redesign and modification. The fabrication processes of the metallic material includes the making out, cutting bending hammering, joining, welding, grazing, smothering and finally printing. A consideration of the operational environment which the store will function was taken into account and a material selection …


Can this topic “School Supervision and Quality Assurance in Public Senior Secondary Schools in Education” be used for Educational Administration and Supervision Project?

Yes it can be utilized for research — This study examined school supervision and quality assurance in education District I, Lagos State. The study employed a survey research design. An instrument titled: school supervision and quality assurance (SSQA) was used to collect relevant data for the study. The nine secondary schools involved were selected based on simple random sampling technique and the statistical tools employed to analyse the data collected were percentages, means scores while the T-test statistical and Chi-square statistical tool were used to test the stated hypotheses at 0.05 level of significance. The sample size were used for the study comprised of 144 participants. Four research questions and 4 research hypotheses were formulated to guide study. The survey results revealed that there is a significant relationship between …


Can the material for “The Effects of Alcohol and Sexually Transmitted Diseases Among Uniform Men” be used as a guide for Sociology Project?

Yes it can be used — Alcohol consumption and sexually transmitted diseases (STDs) have been a global challenge that confronts most countries of the world. Alcohol as it were has always come with more of negative outcomes. And in considering the correlation between alcohol and sexually transmitted diseases (STDs) one would be able to know that it is the outcome effect of it, which one of it is sexual arouse that results into sexually transmitted infections (STIs) which when not immediately managed could results into sexually transmitted diseases (STDs). And in recent time it was observed that most uniform men consume more of alcohol to make them to be pro-active at work and because of the power they have on the general populace, by virtue of …



Chat with us on WhatsApp