24 hours Cheque Clearance takes effect today – CBN

By Mahmud Jika

As part of its effort to restructure the Nigerian financial system, the central bank of Nigeria has kick starts the new 24 hours chaque clearing policy, across the federation today 4th of September.

Every clearing chaque will receive value at the end of the next day close of business, contrary to the present system that take a routine of 3 working days before the value is to be create.

This was made known by the CBN Director banking and payment system ,Mr. Dipo Fatokun ,he noted that the new system, , which is commonly referred to as T+1 means that “if you pay in a cheque on Monday, by the close of business on Tuesday, your account would be credited, unlike what is currently obtainable which is Wednesday. The new system is an enhancement to the cheque truncation system introduced by the Central Bank of Nigeria (CBN) to effectively improve the efficiency of the Nigerian payment system.

People will as what is the difference, but if your cheque is cleared on Tuesday night and you get value for your money, you can decide to use electronic transfer or your ATM to get your money. He maintained that, the move is part of the effort to support the cashless policy initiated by the apex bank. The measure was also prompted by the need to enhance the effectiveness of the cheque truncation procedures following changes to the Nigeria Bankers Clearing House Rules.

Fatokun explained that the new policy became necessary in view of the payment system transformation. To this end, deposit money banks in the country have started sensitizing their customers on the policy. The central bank had said the delivery of value to beneficiaries at the close of business on day T+1, is achievable, adding that such a move would further enhance the National Payment System and contribute to the attainment of the goals of the PSV 2020.

Fatokun therefore urged all deposit money banks (DMBs) to configure their systems to give values to their customers on day T+1. Guaranty Trust Bank Plc in a notice to its customers explained that under the new process, all clearing cheques must be pre-confirmed after issuance while the accounts must be adequately funded to ensure cheques are honored.

GTBank has provided several alternative channels to enable customers pre-confirm and stop cheques without visiting the bank. The new system is an enhancement to the cheque truncation system introduced by the CBN to effectively improve the efficiency of the Nigerian payment system, the bank stated.