The new system is an enhancement to the cheque truncation system introduced by the Central Bank of Nigeria (CBN) to effectively improve the efficiency of the Nigerian payment system.
Cheque truncation is the conversion of a physical cheque into a substitute electronic form for transmission to the paying bank. This eliminates the cumbersome physical presentation of the cheque and saves time and processing costs.
To this end, deposit money banks in the country have started sensitising their customers on the policy.
Speaking with THISDAY, CBN Director, Banking and Payment System, Mr. ‘DipoFatokunstated that the new system, which is commonly referred to as T+1 means that “if you pay in a cheque on Monday, by the close of business on Tuesday, your account would be credited, unlike what is currently obtainable which is Wednesday.
“People will as what is the difference, but if your cheque is cleared on Tuesday night and you get value for your money, you can decide to use electronic transfer or your ATM to get your money.”
He said the move is also part of efforts to support the cashless policy.
Fatokun explained that the new policy became necessary in view of the payment system transformation.
He said, the measure was also prompted by the need to enhance the effectiveness of the cheque truncation procedures following changes to the Nigeria Bankers Clearing House Rules.
The central bank had said the delivery of value to beneficiaries at the close of business on day T+1, is achievable, adding that such a move would further enhance the National Payment System and contribute to the attainment of the goals of the PSV 2020.
Fatokun therefore urged all deposit money banks (DMBs) to configure their systems to give values to their customers on day T+1.
Guaranty Trust Bank Plc in a notice to its customers explained that under the new process, all clearing cheques must be pre-confirmed after issuance while the accounts must be adequately funded to ensure cheques are honored.
“GTBank has provided several alternative channels to enable customers pre-confirm and stop cheques without visiting the bank.
“The new system is an enhancement to the cheque truncation system introduced by the CBN to effectively improve the efficiency of the Nigerian payment system,” the bank stated.