As part of efforts to boost its cash-less policy, the apex Central Bank of Nigeria (CBN) is to reduce the days for clearing cheques from three to two, using a system called ”cheque truncation”, with effect from 5 July, according to the private Guardian newspaper.
Under the system, the physical movement of a cheque to the clearing house will be replaced
by a process in which the cheque details will be captured by the bank presenting it or its clearing agent, and electronically presented in an agreed format to the clearing house for onward delivery to the paying bank for payment.
“The CBN is encouraging the use of alternative payment channels instead of using cash,” the paper quoted the Director, Banking and Payment System Department of CBN, Mr. Dipo Fatokun, as saying at a stakeholders’ forum on cheque truncation.
He said the cheque truncation system is in furtherance of the CBN’s effort to promote cash-less policy, maintain monetary stability and a sound financial system in the country.
The scheme will also ensure effective regulation and management of cheques by reducing the cost and days of clearing instruments, as well as articulate the rights and responsibilities of presenting and paying banks in the cheque truncation system.