Many banks are not yet ready to introduce MICR-encoded chequebooks by Bangladesh Bank's deadline that ends today.
Magnetic Ink Character Recognition or MICR is a character recognition technology adopted mainly by the banking industry globally to facilitate the processing of cheques. The system minimises chances of error and fast-tracks clearing of cheques and transfer of funds.
“We are trying our best to introduce the new cheques. But thousands of clients need more time to understand the issue,” said Syed Abu Naser Bukhtear Ahmed, managing director of state-owned Agrani Bank that deals with roughly 70 lakh bank accounts.
Helal Ahmed Chowdhury, managing director of Pubali Bank, said: “We have just appointed a vendor for providing MICR-encoded chequebooks." Pubali runs 375 branches across the country.
As the regulator, the central bank asked all banks to issue MICR-encoded standard cheques and phase out old, non-standard cheques by June 30. But most scheduled banks -- out of the 48 -- are yet to implement the system.
There are 3.7 crore accounts in all the banks in the country, according to central bank statistics. Every accountholder will have to take a MICR-encoded chequebook to comply with the BB directive.
“I believe the system will not be completely implemented so soon,” said an official of IFIC Bank's Karwan Bazar branch.
“Our branch deals with nearly 10,000 customers who need more time to receive the new chequebook.”
IFIC Bank is among the few banks that have already been issuing MICR-encoded chequebooks.
Bankers also termed the move a gigantic task and demanded more time to implement the system fully.
“Although banks are committed to introducing the new system by June 30, the old system will continue side by side for some time,” said Dasgupta Ashim Kumar, general manager of Department of Currency Management and Payment Systems at the central bank.
However, the BB official declined to specify the deadline when the old system would be phased out permanently.
“We'll go for a trial operation of the new system (at the Clearing House) on November 8,” said Ashim Kumar.
Confusing details emerged over the deadline, though.
The Agrani Bank managing director said the deadline has been extended to November 30 while the Pubali Bank managing director said the deadline is November 6.
Not so, said the BB general manager. "The deadline has not been extended."
Source: thedailystar.net
