Prerequisite Central Bank of Myanmar is expected to establish the new guide line, and relevant rule in accordance with the Myanmar low, regarding cheque truncation. This Soft Component (Management Guidance) plan is based on the assumption that CBM provides all the necessary institutional design and rule to operate cheque truncation, asking for support from Technical Cooperation Team of JICA if necessary. 1. Background of the Soft Component Plan 1.1 Outline of the ICT System Development Project The settlement system of Central Bank of Myanmar (hereinafter “CBM-NET”) has been commenced since January 2016 and resulted in the activity of “The Project for the Development of ICT System for Central Banking Phase 1 (hereinafter “The 1st. Development”). While CBM-NET is operated smoothly, additional requirement to improve the functions such as adoption of international standards, STP (Straight Trough Processing), and measures for disaster recovery. Thus, JICA had decided to start “Preparatory Survey on the Project for the Development of ICT System for Central Banking Phase 2” to find the necessary system functions. In accordance with the survey results, JICA has a plan to organize “The Project for the Development of ICT System for Central Banking Phase 2” (hereinafter “The 2nd. Development”) in 2018, and additional system functions will be implemented in accordance with the requirement definition agreed by Myanmar side and Japanese side. The project aims to modernise the business operations at the Central Bank of Myanmar (hereinafter CBM). To complete the objective, in addition to the system development administration, it is required to prepare the business manuals, conduct training for both CBM and financial institutions (FIs), and support the contract between CBM and operation & maintenance providers. The soft component program will cover those activities. 1.2 Necessity of executing soft component The 2nd Development covers adaptation of ISO20022, STP, cheque truncation, and measures for disaster recovery. These upgrades of CBM-NET will not only cover computer system modifications, but entire business process which consists of business flow, rules, and modification among the FIs including CBM. For example, FIs will deal with business transactions by their own core system and interface the data to CBM-NET automatically, throughout the business, the procedure of the settlement will be entirely changed. As same as the 1st. Development, this project focuses on fund settlement, securities settlement, therefore these all occupy crucial positions regarding 1) accuracy 2) sustainability, and 3) universality. Any error or outage of these functions will immediately affect the Myanmar economy. To achieve these crucial businesses modification, it is essential to explain the business and system modification background, support for manuals preparation, and training to CBM and FIs. 1