By Kofi AHOVI
The Ghana Interbank Payment and Settlement Systems (GhIPSS), a subsidiary of the Bank of Ghana, is set to launch the new cheque clearing system to be known as Cheque Codeline Clearing (CCC) system, into the banking industry this month.
However, the implementation of the system will take effect in August, this year.
The electronic-based system, which will replace the manual system of clearing cheques, is to facilitate and reduce delays in the cheque clearing process.
When it becomes operational, the CCC will almost eliminate the manual interbank cheque exchange that only allows banks about three working days to give customers access to the funds for withdrawal. It will take a maximum of eight hours to clear cheques under the new system.
The cheque code-line clearing and the e-zwich money transfer are part of reforms being made by the Central Bank to make Ghana a cashless economy.
In a process of removing the paper cheque from the clearing process called truncation, both sides of the paper cheque are scanned to produce digital images. If a paper document is still needed, these images are inserted into specially formatted documents containing a photo-reduced copy of the original cheque, called a "substitute cheque.”
The system also possesses the ability to alert “bounced” cheques.
Once a cheque is truncated, the Interbank Data Exchange (IBDE) files are sent through the secured networks of GhIPSS to allow businesses and banks to work with either the digital image or print a reproduction of it. Images can be exchanged between member banks, and even the central bank.
This will prevent the banks from physically sending the cheques to the clearing house. In other words, all in-clearing processes will be done electronically.
Meanwhile, the entry of the CCC will mean that GhIPSS, by its sheer e-payment mandate, will become the central clearing-house of interbank payments.
This project is one of three major ones inspired by the Bank of Ghana’s new payment and settlement system aimed at overhauling the country’s overall financial system.
The Ghana Interbank Payment and Settlement Systems (GhIPSS), a subsidiary of the Bank of Ghana, is set to launch the new cheque clearing system to be known as Cheque Codeline Clearing (CCC) system, into the banking industry this month.
However, the implementation of the system will take effect in August, this year.
The electronic-based system, which will replace the manual system of clearing cheques, is to facilitate and reduce delays in the cheque clearing process.
When it becomes operational, the CCC will almost eliminate the manual interbank cheque exchange that only allows banks about three working days to give customers access to the funds for withdrawal. It will take a maximum of eight hours to clear cheques under the new system.
The cheque code-line clearing and the e-zwich money transfer are part of reforms being made by the Central Bank to make Ghana a cashless economy.
In a process of removing the paper cheque from the clearing process called truncation, both sides of the paper cheque are scanned to produce digital images. If a paper document is still needed, these images are inserted into specially formatted documents containing a photo-reduced copy of the original cheque, called a "substitute cheque.”
The system also possesses the ability to alert “bounced” cheques.
Once a cheque is truncated, the Interbank Data Exchange (IBDE) files are sent through the secured networks of GhIPSS to allow businesses and banks to work with either the digital image or print a reproduction of it. Images can be exchanged between member banks, and even the central bank.
This will prevent the banks from physically sending the cheques to the clearing house. In other words, all in-clearing processes will be done electronically.
Meanwhile, the entry of the CCC will mean that GhIPSS, by its sheer e-payment mandate, will become the central clearing-house of interbank payments.
This project is one of three major ones inspired by the Bank of Ghana’s new payment and settlement system aimed at overhauling the country’s overall financial system.
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