Abstract: A cheque clearing system (102) for enabling customers of a bank to issue digital cheques from bank server (108) using their computer (105), and for enabling beneficiary of cheques to deposit the digital cheques using their mobile phones (104) is provided herein. The cheque clearing system (102) includes a digital cheque module (202) configured to enable a customer of a bank to issue a digital cheque from a bank server (108) using the computer (105). The cheque clearing system (102) further includes a deposit module (204) configured to enable a beneficiary of the cheque to deposit the digital cheque using his/her mobile phone (104). The cheque clearing system (102) further includes a processing module (206) configured to receive the digital cheque from the beneficiary mobile phone (104), and process the digital cheque to retrieve information about the cheque.