What is BACH?

Bangladesh Automated Clearing House (BACH) the automation of the country's banking and clearing system. As a part of the central bank scheme BACH is likely to introduce the clearing system more speedily, securely and efficiently in the banking sector through electronic media considering the standardized system for all banks in Bangladesh.

BACH network will be the highly reliable and efficient nationwide batch-oriented electronic funds transfer system govern by the BACH Operational Rules which provide for the inter bank clearing of electronic payments for participating financial institutions.

The system will be run by using a special software and hardware through a Core Banking Solution (CBS) where the data will be integrated accordingly. At the same time link is a must of a bank with the Bangladesh Bank to export and import data.

In this regard Bangladesh Bank is taking necessary steps in the following manner:

• Preparation of a Manual/Guideline for Automated Clearing House (ACH) and Electronic Fund Transfer (EFT)
• Standardization/personalization of Cheque, Pay Order, Demand Draft, Dividend Warrant and other nature of instrument
  
• Define transaction code numbers against the nature of instrument and transaction to be made under the process
• Provide routing number against each and every branch of all banks
• Ascertain how to handle fraud and forgery under the guideline of Negotiable Instrument Act
  
• Provide PBM (Participatory Bank Module) Software the Gateway for all the bank under which the system will be operated
• Establish a location for Disaster Recovery Centre (DRC) of Bangladesh Bank