The Legal Effects of Imaged Cheque Clearing and Archive System: Case Study the Comparison between the Cheque Truncation System of Singapore

Abstract

Imaged Cheque Clearing and Archive System or ICAS is a cheque process which Sending Bank will send cheque image (instead of physical/paper cheque) to Paying Bank to verify and authorise payment. ICAS is comprised of 2 sub–systems; the ICS is image– based cheque clearing system processing by capturing and sending image to the system, while the IAS is responsible for the storage of electronic data and images. Advantages of ICAS are to reduce cheque clearing period from 5–7 working days to 1 working day and to reduce paper cheque transportation expenses as well as to reduce paper cheque storage spaces.

Imaged Cheque Clearing and Archive System or ICAS in Thailand was officially launched to public on 3rd February 2012 has been supported by following related laws and regulations; Electronic Transaction Act B.E.2544 (A.D.2001)–Original Act, Electronic Transaction Act (No.2) B.E.2551 (A.D.2008)–Amended Act, Notification of Electronic Transaction Commission on Rules and Procedures for preparation or document and data transmission into electronic format B.E.2553 (A.D.2010), the Bank of Thailand Regulations No. Sor Ror Khor 1/2554 on imaged cheque clearing and archive system and the Protocols among member banks on Imaged Cheque Clearing and Archive System or ICAS. The foresaid laws and regulations have been considered as fit and proper to support the system.