By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Deposit money banks (DMBs) in Nigeria are to commence the T+1 clearing system; same day value for cheques of customers.
The central bank of Nigeria (CBN) Tuesday directed all deposit money banks (DMBs) in the country to adopt the T+1 clearing system; same day value to customers.
This is contained in a circular number CBN/BPS/CIR/02/2014 to all DMBs dated March 04, 2014 and signed by Dipo Fatokun, director, banking and payments systems department of Nigeria’s central bank.
Paragraph one of the circular reads thus: ‘’As a result of developments in the processing of cheques and the need to enhance the effectiveness of the cheque truncation procedures, the following changes to the Nigerian bankers clearing house rules are to take immediate effect,’’ the circular reads.
Same day value for cheques, according to Nigeria’s central bank, presently, cheques presented in the automated clearing house in day T+1 earns value for the beneficiary on day T+2, whereas the beneficiary bank is settled in day T+1.
According to the CBN, it believes that the delivery of value to beneficiaries at the close of business on T+1 is achievable. ‘’ Such a move would further the national payment system and contribute to the attainment of the goals of the PSV2020,’’ the CBN said.
‘’All deposit money banks (DMBs) are hereby directed to configure their systems to give value to their customers on day T+1 (same day the DMBs are given value for the presentment). However, as we envisaged that these changes to the process may affect your internal control practices, as well as your systems, T+1 value to banks customers is expected to be fully operational by September 04, 2014,’’ the CBN affirmed.
Another change to the Nigerian bankers clearing house rules according to the CBN is that use of presentation stamp on paper-based instruments shall be optional.
The Nigeria’s central bank says that presentation stamp which hitherto was mandatory is no more relevant to the present dispensation, and is hereby made optional. ‘’However, usage of crossing stamp is compulsory,’’ the CBN said.
The last change to the Nigerian bankers clearing house rules is the introduction of a special clearing session to cater for exigencies that often make the first session to close later than the prescribed time of 8:00 am daily.
The CBN says a number of banks often make passionate appeal for the extension of time, of five (5) to 60 minutes before the 8:00 am prescribed time sighting reasons associated with data transmission.
‘’NIBSS often obliged these requests, because turning down such request would mean that the bank (s) would not be able to present cheques for clearing on that day, as fresh cheques are allowed only in the first session,’’ the CBN affirmed.
The CBN says such time extension always put pressure on all other DMBs that have completed data transmission well before the 8:00 am deadline and such banks would not have access to their respective clearing reports until noon.
‘’This puts the banks under much pressure to return unpaid cheques by the third clearing session of 4:00 pm-6:00pm. There is therefore an urgent need to minimize the risks of wrongful return of financial instruments,’’ the CBN said.
The CBN said consequent upon this, the NIBSS is directed to close the first session at 8:00 am prompt daily, and open 9:00 am-10am special session for late transmission of clearing instruments.
Nigeria’s central bank further affirmed that banks that transmit cheque instruments in the special session shall be charged late transmission fee of N100, 000 so as to prevent abuse.
‘’However, NEFT instruments shall be permitted in this special session without any additional charge. This is to further promote electronic payment,’’ the CBN said.
