The Central Bank of Nigeria has issued new revised rules for the guidance of all Nigeria Banks Clearing Houses.

The bank in a circular on Friday said the objective of the NBCH was to facilitate the implementation of an effective and efficient payment system in the Nigerian banking industry.

It stated that the clearing period, which is the duration of holding the instrument is two days, with the next day being the settlement time.

“All financial instruments presented on member banks in any clearing area shall if unpaid, be returned through the clearing house by the second clearing day,” it added.

It added. “Other objectives of the NBCH are to provide a forum for the speedy and efficient collection of cheques, automated clearing house bills and other payment instruments payable or deliverable at offices of member banks of the NBCH by a system or systems of clearing.”

The circular noted that the clearing house rules shall be binding on all member banks of the NBCH with effect from July 16, 2012, adding that the rules superseded any previous NBCH rules.

It said, “Electronic instruments shall clear as follows- electronic instruments shall be presented to the clearing house within 24 hours of receiving same from the originating customer unless the relevant service agreement dictates otherwise; direct credits shall be applied to the beneficiary’s account on the receiving date; direct debits shall be deemed paid after two clearing days or three working days commencing from the day of lodgment.”

On settlement and procedures, the CBN said the CBN would appoint settlement banks, among member banks, from time to time for the purpose of settlement finality.

It said, “Every non-settlement bank shall be required to appoint one of the settlement banks so designated as an agent bank. Every settlement bank shall have the mandatory responsibility to maintain in credit its current account with the CBN and shall be required to deposit with the CBN the required clearing collateral and any other securities.”

Source: Punch/Ademola Alawiye