👉 Cheque computing is the automated process of generating, processing, and reconciling cheques within a banking system. It involves digitizing the traditional cheque-writing process by converting handwritten or printed cheques into electronic formats, which are then transmitted to the issuing bank for verification and processing. The system checks the cheque's details, such as the account numbers and amounts, against the bank's records to ensure accuracy and prevent fraud. Once validated, the system generates a digital cheque image or a digital representation of the physical cheque, which is sent to the recipient's bank for deposit. The recipient can then electronically transfer the funds or cash out using their account details. This streamlined process enhances efficiency, reduces errors, and speeds up the settlement of transactions compared to manual methods.
