Bank of Uganda introduces faster cheque clearing system


BRIDGET ASIIMWE

Bank of Uganda (BOU) has introduced a new automated clearing house system with check truncation capability in a move to speed up cheque clearance and settlement process among banks and realization of funds by the beneficiaries.

The new system aims at eliminating physical movement of cheques between banks since cheque truncation involves exchange of electronic cheque images in the clearing process.

Under this system, the cheques presented will be automatically scanned by the collecting banks and the resulting high definition (HD) images, accompanied by relevant electronic data will be transmitted to the paying banks through the clearing house.

According to statement issued by the Central bank on Wednesday, the system is intended to benefit the financial sector and the general public in relation to time spent on cheque clearance in that a day instead of the current two days will be required; costs and risks in cheque clearance as well as access to a single centralised cheque clearance platform are catered for in the new system.

The new system is expected to begin on April 20.
However, the current cheque system is still in use and the public is advised to check with their respective commercial banks or the Bank of Uganda National Payments system help desk for inquiries.