Informatics Services Corporation, affiliated to the Central Bank of Iran, has unveiled its digital check payment platform, called Checkad, as a vastly improved replacement for paper checks now in use.
The platform was unveiled to the public on the sidelines of the 7th Iran Transaction Conference on Tuesday in Tehran. "Paper checks are usually vulnerable to risks including physical damage…they might be lost or forged. The new platform is designed to address the shortcomings of paper checks," Ashkan Rahmani, the ISC official said, the company's website reported.
An electronic check, or e-check, is a form of payment via the Internet, or another data network, designed to perform the same function as a conventional paper check. As the check is in an electronic format it is processed faster.
Using the platform one can issue digital checks with an electronic signature. It also enhances supervision of the central bank and commercial banks over check transactions.
Generally, the cost of issuing electronic checks is less than paper checks. Electronic checks also have the added benefit of safeguarding money against fraud and theft.
Checkad offers 30 types of services. Users can apply for getting digital checkbooks, issue e-checks, use such checks as guarantee, block payment and track the clearance process.
According to Rahmani, the platform makes use of two identification platforms to ensure the security of digital checks, namely the central bank’s NAMAD platform and e-signature platform.
NAMAD is a system for ensuring security, confidentiality, authenticity, integrity and non-repudiation in the banking network that allows secure digital identification for virtual banking services.
The Central Bank of Iran said earlier it has put into effect major parts of the Check Issuance Law, outlining a timeline for enforcing the remaining segments. Electronic checks are a key feature of the new law.
The legislation was passed by parliament in Nov 2018. The CBI said depriving unruly checkbook-holders of loans and other banking facilities, conducting regular credibility assessment of checkbook holders and inquiries about check transactions have been realized so far.
Last year the CBI required all check transactions to be registered on a special electronic platform, named Sayyad. The system runs credibility checks on account holders wanting to write a check.
CBI data show that in terms of volume, checks drawn in the month to Sept. 22 rose from 6.9 million to 7.3 million. The value of drawn checks reached 2,499 trillion rials ($9.25 billion) -- 23.5% higher on a monthly basis.
