Reviews Clearing System Rules

In line with its drive to promote sound financial system in the country, the Central Bank of Nigeria (CBN) has revised the rules for the operation of the Nigeria Bankers’ Clearing System (NBCS).

According to the revised guidelines posted on the CBN’s website wednesday, the objectives of the NBCS remains to provide for efficient operation of automated clearing system, speedy and efficient collection of cheques, to prescribe appropriate standards for the use of the NBCS, among others.

The central bank explained that the new rules takes effect from September 1, adding that it supersede any previous NBCH rules, cheque truncation guidelines, as well as others in the industry.

“Any licensed bank that is not a member of the NBCS may enter into an agency agreement with any member bank of the NBCS for the purpose of accepting cheques and other instruments drawn on it and for collecting cheques drawn on other banks.

“A member bank may be penalised by suspension from participating in clearing activities for such periods as shall be determined by the CBN for non-attendance of two consecutive meetings of the committee, without a satisfactory reason communicated in writing within five working days before or after any scheduled meeting,” it stated.

According to the new rules, eligible financial instruments for clearing purposes shall include paper-based payment instruments such as cheques, managers’ cheques, drafts, dividend/interest warrants, debit/credit notes and bankers’ payments.

These instruments would be converted to images for clearing purposes.

“ Paper-based Payment Instruments deposited by the customer at any member bank shall be deemed paid by 10pm of the next working day (T+1) except where: a) it is returned by the paying bank b) a special caution or an extension of value date request has been received from the paying bank,” it added.