SYSTEM ARCHITECURE
In this
section, we describe the system architecture along with implementation details.
Functional diagram of the clearing house subsystem.
Clearing House
Module:
The Inter-Bank Clearing and Settlement System consists of two subsystems (1) E-Check Clearing and Settlement System (2) Bank Gateway. ECCH interacts with participating bank gateway And Inter Bank Settlement System named Real Time Gross Settlement System (RTGS). This system has been recently implemented by the Reserve Bank of India (RBI). Communication between ECCH and bank Gateway is through JMS (Java Messaging Service) bridge. The communication between ECCH and RTGS is Through MQ (Message Queuing) bridge. ECCH has software modules, which carry out the following Activities:
- Receives E-Check batches from the
collecting bank gateway.
- Performs verifications and
validations of these batches after decrypting them.
- Sorts E-Checks issuing bank-wise.
- Creates E-Check batches for each
issuing bank.
- encrypts the batch for each bank
with the public key of that bank. The batches are digitally signed using
private
- Key of the ECCH and forwarded to the
issuing bank gateway.
- Receives confirmation or returned
messages from the issuing bank gateway.
- Sorts returned E-Checks by
collecting banks and forward them to respective collecting banks.
- for confirmed E-Checks, a net
settlement matrix is prepared and the net settlement amount for each bank is arrived
at.
- the net settlement file is digitally
signed, encrypted, and sent to the RTGS
- Receives net settlement response
from RTGS (can be either confirmation or rejection)
- decrypts the message received from RTGS.
.png) |
| FUNCTION DIAGRAM OF CLEARING HOUSE |
Bank Gateway Module:
The bank gateway receives E-Checks from the bank’s web server and performs necessary validations. The bank gateway functions both as the collecting bank gateway and the issuing bank gateway. The collecting bank gateway creates E-Check batches. The batches are digitally signed using their private key and sent to the ECCH. The issuing bank gateway is designed to accept E-Check batches from ECCH, validate the instruments, and send them to the core banking / TBA system of the bank. The transmission of E-Checks between the branches and the gateway system is the responsibility of the respective banks.
The functionality of these modules is Collecting Bank.
1. Receives
E-Checks from the payee.
2. Segregates them On-Us and On-Others.
3. On–Us E-Checks are sent to CBS/TBA for Payment confirmation.
4. On-Others E-Checks are made into a batch. The batches are digitally signed using its.
Private Key encrypted and sent to ECCH for Clearing.
5. Receives the transaction messages(confirmation/return) from the ECCH.
6. Decrypts
the messages received.
7. Forwards
payment confirmation to the Core banking/TBA systems.
8. Sends
returned E-Checks to the bank’s web server for transmission to the payee.
Issuing Bank:
1. Decrypts
E-Check batches received from the ECCH.
2. Validates
E-Checks and forward them to Core Banking/TBA systems.
3. Receives
transaction messages (payment confirmation or return) from core banking/TBA
systems.
4. Sends
confirmations to the ECCH. The confirmation batch is digitally signed and
encrypted.
5. In case
of returns, the E-Check is returned to the ECCH along with the return reason.
The issuing bank digitally Signs the “return reason”.
