In response to check truncation initiatives in India and other emerging markets, Panini, a global payments processing technology provider, has added ultraviolet (UV) light scanning capabilities to its market-leading Vision X® cheque scanning platform.
The new UV scanning capability will be available as an optional feature on the Panini Vision X, allowing banks to assess item authenticity during the cheque truncation process.
India's new Cheque Truncation Standards, established by the Reserve Bank of India, include various security features to ensure uniformity across all banks in the country by providing a standard for the examination of checks in an image-based processing environment. A key security feature introduced by the new standards is the inclusion of ultraviolet logos on all paper cheques; bank logos will be printed using UV ink, visible only under UV light. When using the new UV detection feature, the Panini Vision X will scan the front cheque image with UV light, enabling the necessary fraud detection procedures, while simultaneously capturing the greyscale or binary image required for cheque truncation.
"As one of the world's fastest growing economies, India is engaged in a tremendous effort to modernize and streamline its payments system," says Michael Pratt, Chief Marketing Officer, Panini. "Our ability to rapidly add the UV option to the world's leading check scanning platform, the Panini Vision X, is a testament to our commitment to this market and their cheque truncation efforts."
Other emerging markets for check truncation are also considering the use of UV security technology. The Kenya Bankers Association (KBA) published its Standards for Automated clearing in late 2009, including ultraviolet as part of a set of mandatory security features for check printing. According to the KBA's document, "The bank's logo should be printed in UV ink and will be visible in UV-enabled scanners/lamps. This will aid in establishing genuineness of a cheque."
Several other countries, particularly in the Middle East and Latin America, are also evaluating UV imaging as a security feature useful to prevent check fraud, and Panini is engaged with key customers and partners in these markets to ensure these countries have the necessary technology to meet their requirements.
Panini has been actively involved in the check truncation initiative in India, playing a leadership role in the New Delhi cheque truncation project that started in 2008. Utilizing Panini Vision X cheque scanners, member banks of the New Delhi Clearing House are currently capturing cheque images in their branch back offices and sending the captured data to a central facility for truncation and clearing under Reserve Bank of India's supervision. As a result of the successful transition to cheque truncation in New Delhi, an additional cheque truncation pilot is expected to begin soon in the Chennai Region. Panini has already started working with many local banks and technology companies to duplicate the success for the new pilot. The entire nation is expected to have a fully implemented Cheque Truncation System by 2013-14.