Economy, Business And Markets

Bank Kicked Out of Checkavak

Bank Kicked Out of CheckavakBank Kicked Out of Checkavak

An unnamed bank was reprimanded by the central bank due to noncompliance with e-check system Checkavak, a central bank official said on Monday.

“We cannot let one bank’s weak performance hurt the general consumer,” said Nasser Hakimi, Central Bank of Iran’s head of Communication and Information Technology.

Bank’s that cannot comply with electronic check management system will be marginalized by the CBI and will lose their privilege to process checks.

Checkavak’s recent malfunctions in some provinces, have led to speculation over the system’s readiness for operation. But CBI officials said that these shortcomings were fixed, so that the system can function properly, when it goes online in all of Iran on Feb. 11.

The check management and clearing system will easily handle all checking transactions. It is supposed to handle 60 percent of all check transactions.

Checkavak is using broadband intranet, and since the introduction of Tehran to the system on Dec. 27, it is using 20 percent of its band capacity.

The system has processed 405,000 checks in 14 provinces, seven percent of which have bounced due to various reasons.