Boston’s loss might be Windsor Lock’s gain. The Federal Reserve Bank of Boston announced Monday it would shift its check-processing operations to its location in Windsor Locks at the end of next year.

The shift likely will cause the bank to cut about 100 jobs in Boston and possibly add 50 in Connecticut, said Boston Fed spokesman Tom Lavelle.

“We expect [to add] about 50 more people,” he said.

The strategy behind the Fed consolidation is designed to reduce the operating costs of its check services, according to a statement from the bank. The Fed changes, which are not limited to Connecticut and Massachusetts, are a result of an increasing number of personal and business customers throughout the United States paying their bills electronically.

“These changes are intended to improve the efficiency of our check operations while maintaining high-quality check services to depository institutions nationwide,” said Gary Stern, chairman of the bank’s Financial Services Policy Committee and president of the Federal Reserve Bank of Minneapolis, in a prepared statement. “But streamlining our check infrastructure is only part of the Reserve Banks’ strategy to improve efficiency; for example, we are also launching new products and services to support the implementation of the Check 21 Act in October 2004.

“As we’ve been saying for some time and as the financial services industry realizes, not only are fewer checks being written, but paper checks are increasingly giving way to electronic alternatives. While this makes for an increasingly efficient payments system, it also means that we must shift work among offices and, unfortunately, some dedicated staff will lose their jobs.”

The restructuring is expected to reduce the number of check operations sites by 22 before early 2006. This round of restructuring will affect Boston and eight other sites across the country.

The exact number of jobs added in Windsor Locks will depend on people’s check-writing habits next year.

“We expect [to add] about 50 more people,” Lavelle said. “It depends on check volume.”

Lavelle expects few Boston employees to relocate to Windsor Locks. About 10 might, he said.

The bank is offering separation programs such as extended medical benefits and job counseling to employees who will leave, Lavelle added.

“Anything like this is unfortunate,” he noted.

The Federal Reserve Banks will reduce their overall checking staff by about 270, according to a statement from the bank. That is about 6 percent of the banks’ current checking employees. In the offices where check processing will be eliminated, about 640 positions will be affected, according to the statement, as some staff reductions could occur through attrition and there might be some reassignment opportunities.

The banks could add about 370 positions in the offices that will continue processing checks.