What significant change occurred in the 1990s regarding check processing?

In the 1990s, a significant transformation in check processing took place with the introduction of check imaging technology. This allowed banks to scan and digitally capture images of checks for efficient processing. By employing imaging technology, banks could streamline their operations, reduce the need for physical transportation of checks, and speed up the clearing process. This change was pivotal because it laid the groundwork for future advancements in electronic payments and enabled faster fund availability for depositors.

The option regarding the requirement for checks to be physically delivered does not reflect this shift toward automation and efficiency. While some banks may still have allowed physical delivery during this period, the major advancement was in imaging. Eliminating paper checks altogether is not accurate, as while some banks may have adopted electronic alternatives, physical checks were still in circulation during the 1990s. Lastly, while there was a movement towards accepting digital transactions, banks were not exclusively focusing on that to the exclusion of all other forms of payment during this decade. The significant transition was the introduction and widespread adoption of check imaging technology.