Define clearing house and also write down the main features of BACPS

Clearing House: Clearing House is a kind of house, where the representatives of all Banks would be met to settle their inter-banking transactions under the control of Central Bank. Bangladesh Bank does the act as a Central Bank but there is no branch of Central Bank; where Sonali Bank will do the same job. The old practice of receiving the payment of the cheque drawn on other banks was to send bank clerk with all such cheque and other instruments to collect the cash from various banks. Since this method was time-consuming and aweful, the Automated Clearing House system was introduced where all the member bankers daily assemble to settle their drawings upon each other. Now a days Bangladesh Bank has modernize the Clearing House under (BACPS) Bangladesh Automated Cheque Processing System. Under the BACPS, (BACH) Bangladesh Automated Clearing House has been established. Live BACH has established in Dhaka on 20101007.

Main features of BACPS: 

 MICR Cheque (Magnetic Ink Character recognition)

 Point of Truncation

 Scanning Standard

 Software/Integration

 Communication Link

There are two types of Clearing:

 Clearing outward

 Clearing inward