Search Blog / Web

Custom Search

Sunday, April 22, 2012

CENTRAL CLEARING OPERATIONS

INTRODUCTION TO CLEARING

Clearing is one of the most important aspects of banking operations. It is a major means of transferring funds between banks, as instruments drawn on one gets value at the other without physical movement of cash. The Nigerian Clearing system is currently organized by the CBN/NIBSS (Nigeria Interbank Settlement System) and the banks participating in the operation are known as Settlement banks.

The high risk and sensitive nature of clearing demands that it be handled with great caution and diligence.  CBN has 28 Clearing zones in Nigeria and from time the apex bank specifies the clearing period for which a clearing cheque (instruments) will be get value.

RTGS AND NEFT MONEY TRANSFER PAYMENTS METHODS IN NIGERIA

INTRODUCTION 



In December 2009, the CBN in a circular to deposit money banks entitled 'Maximum Limit on Cheque Payment' set a maximum limit on cheque payment at N10 million with effect from jan 1st 2010. Noting that any payment value exceeding N10 million should be made through the e-payment mode such as the Central Bank Interbank Funds Transfer System (CIFTS ie RTGS) and Nigeria Interbank Settlement System Electronic Funds Transfer (NEFT).

Related Posts Plugin for WordPress, Blogger...