CBN gives September 1 for revised clearing rule implementation

The Central Bank of Nigeria (CBN) on Wednesday released the 2018 revised Nigeria Bankers’ Clearing System (NBCS) rules with effective date of September 1, 2018.  

The one of the objectives of the NBCS rules is to provide for efficient operation of Automated Clearing System, speedy and efficient collection of cheques, ACH instrument, bills and other payment instruments payable or deliverable to member banks of the NBCS by a system or systems of clearing.

In circular to all deposit money banks, microfinance banks, other financial institutions, mobile money operators and payments service providers, signed by Dipo Fatokun, director, banking and payments system department, the move will help facilitate the development of an efficient and effective payments system in the financial services sector.

The CBN says in the rules that each eligible paper-based payment instrument to be presented for clearing purposes shall not exceed the maximum limit of N10 million per face value or as may be reviewed by the CBN.

The rules prescribe the duration of holding instruments, thus, paper-based payment instruments deposited by the customer at any member bank shall be deemed paid by 10pm of the next working day (T+1) except where it is returned by the paying bank and/or a special caution or an extension of value date request has been received from the paying bank.

It also states that electronic payment Instruments shall be presented to the clearing system same day if instruction is received from customer at least 2 hours before closure of session available for the financial instrument, unless the relevant service agreement dictates otherwise.

According to the rules, The relationship between the settlement banks and their respective nonsettlement banks shall be governed by an agency agreement entered into between the two parties which shall contain in the minimum obligation set out in the rules.

The rule prescribes that non Settlement Banks shall pledge collateral in the sum of an amount not less than N250 million only or any other sum as may be prescribed by the CBN with settlement bank which shall serve as collateral for any debit balance in the Settlement Account.