The Circular on the Addendum to the Current Nigeria Bankers Clearing House Rules

CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187, Garki, Abuja.

BANKING AND PAYMENTS SYSTEM DEPARTMENT CBN/BPS/CIR/02/2014 Tuesday, March 04, 2014 TO: ALL DEPOSIT MONEY BANKS ADDENDUM TO THE CURRENT NIGERIA BANKERS CLEARING HOUSE RULES 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 Nigeria Bankers Clearing House Rules are to take immediate effect: 1.

Use of presentation stamp on paper-based instruments shall be optional. Presentation Stamp, which hitherto was mandatory, is no more relevant in the present dispensation, and is hereby made optional. However, usage of Crossing Stamp is compulsory.

2. Same Day Value For Cheques.

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.

However, the CBN believes that the delivery of value to beneficiaries at the close of business on day T+1 is achievable. Such a move would further enhance the National Payment System and contribute to the attainment of the goals of the PSV2020.

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 4th September 2014.

A special clearing session is hereby introduced to cater for exigencies that often make the first clearing session to close later than the prescribed time of 8am daily.

A number of DMBs often make passionate appeals for the extension of time, of five to sixty minutes, just few minutes before 8.00 a.m. with reasons associated with data transmission. NIBSS often obliged these requests because turning down such requests 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.

However 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 3rd clearing session of 4.00 - 6.00 p.m. There is therefore an urgent need to minimize the risks of wrongful return of financial instruments.

Consequently, the Nigeria Inter-Bank Settlement System (NIBSS) is hereby directed to close the first session at 8.00am prompt daily, and open the 9.00 - 10.00 am Special Session for late transmissions of clearing instruments. Bank(s) that transmits CHEQUE instruments in this Special Session shall be charged a late transmission fee of one hundred thousand naira only (N100,000.00) 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 payments.

Please be guided.

"Dipo Fatokun Director, Banking and Payments System Department 3.