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Clearing Cheques Now Takes Two Days in Lagos

By on August 8, 2012

Cheque Truncation is to take two days in Lagos. Truncation refers to the conversion of physical cheque into electronic form (i.e. scanned image) for transmission to the paying bank.

The processing time which used to be T+2 has now become T+1.

This development is part of efforts being undertaken by the CBN in order to make Nigeria move towards a cashless society.

According to a press release by the CBN, “As part of our preparation for the introduction of the Cheque truncation system, the CBN carried out a Systems Audit Certification/Test on all Deposit Money Bank, to confirm their readiness for the commencement of the scheme in Nigeria. Our finding is that conditions are appropriate for the cheque truncation scheme to go-live in the Lagos area. The implementation of the initiative will reduce the Cheque clearing cycle from T+2 to T+1, and thus make it more attractive to users, as an alternative means of payments, instead of transacting in cash. The approved Guideline for cheque truncation was subsequently presented to key stakeholders on April 27, 2012.”

The CBN pres release on the new Cheque Truncation policy may be viewed here

One Comment

  1. Jon Gilchrist

    January 7, 2013 at 4:03 pm

    In canada we have a similar clearing system, bank in 2006 the Canadian Payments Association set up new guidelines for all Canadian cheques to follow. These layouts were to make the clearing process faster, and more automated. But 6 years later they have still not made the new rules mandatory which seems like a substantial waste of money. There is perhaps a 80% compliance rate based on the cheque orders we receive. But im still wondering when they will force these new rules on everyone.
    Jon
    http://www.chequesnow.ca