Bank of Zambia Implementation of T+1 Clearing Rule

BANK Of ZAMBIA
January 21, 2014
CB Circular No: 03/2014
To All Commercial Banks
IMPLEMENTATION OF T+l CLEARING RULE
Further to CB Circular No. 17/2013 dated 30th July, 2013 regarding postponement of implementation of the T+1 clearing, banks are hereby advised that with effect from l" February, 2014, all cheques deposited across the country by 12.00 hours will be given value at 12:00 hours the following business day at T+l. Cheques deposited after 12:00 hours will be processed (Cleared) the following business day and value given at 12:00 hours on the third day. To this end, banks that will fail to comply with the new T+1 clearing rule, will, be charged a penalty fee ofK1,000.00 for each calendar day that they remain non-compliant. In the event that any bank remains non-compliant for a sustained period of time, the sanctions applicable will include suspension from participation in the Zambia Electronic Clearing House Limited. Further, banks that will fail to apply funds to customer accounts at T+1 will be compelled to compensate customers in accordance with section 43 of the revised Zambia Electronic Clearing House Rules. Compensation shall be calculated based on the cheque amount using the weighted average yield rate for the 91 day Treasury Bill for each day that the customer is not given value. To this effect, commercial banks shall display the attached charter on value dates and customer recourse procedures in the banking halls of all branches effective 1 st February,
2014. Failure to display the charter will attract supervisory action including penalties.
Tu~~abula (Dr)
DEPUTY GOVERNOR - ADMINISTRATION

CHARTER ON CHEQUE DEPOSIT VALUE DATES
Following the implementation of the Cheque Truncation system on 1st February 2013, customers are hereby notified that the clearing of cheques and value dates have been standardised across the country effective 1st February 2014 and that the following value dates shall apply:
T+l VALUE DATE
Cheques deposited UP TO 12:00 HOURS will be given value at 12:00 hours the following business day. T+2 VALUE DATE Cheques deposited AFTER 12:00 HOURS will be processed (Cleared) the following business day and value given at 12:00 hours on the third day. Customers should take note that Saturday is not a Cheque Clearing Day and is therefore not counted in value dating of cheques.