Citibank is the latest bank to join an electronic clearing house designed to streamline check processing operations.
The Citicorp unit has joined the organization, the Electronic Check Clearing House Organization, or Eccho, as a full member, and Citibank Delaware has joined as an affiliate, bringing Eccho's membership to 42 banks. In the Eccho system, banks electronically send and receive data from the MICR line of a check, while the actual check is received later.
Immediate Posting
Citibank will be able to receive check data electronically in Delaware and immediately post it to the accounts of 41 Citicorp subsidiary banks.
According to Jay T. Simmons, vice president and director of U.S. dollar disbursement products at Citibank Delaware, the Federal Reserve is unable to deliver checks to a central site for all Citicorp subsidiaries.
