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.