The Central Bank of Nigeria (CBN) has launched a cheque truncation system on its iTeller platform in order to meet national cheque deadlines effectively.
The one-day cheque clearing system allows all CBN branches to capture cheques respectively and keep it in a central server in Lagos.
Captured cheques are then moved to the clearinghouse from Lagos, skipping the post-encoding process.
The newly introduced system allows swifter, more effective services in comparison with the traditional bank operation where cheques were previously sent to clearing departments.
Enabled through partnerships with the Nigeria InterBank Settlement Systems (NIBSS) and Precise Financial Systems (PFS), the CBN is moving forward to comply with the new cheque truncation regulations, leading as an example for other financial institutions.
Yele Okeremi, managing director (MD) and chief executive officer (CEO) at PFS, told Technology Banker: “The system implements all required maker checker rules of the banks.”
NIBSS plays a lead role in supervision at the 37 branches where the iTeller-based cheque system is now running.
HumanIPO reported earlier this year on CBN’s considered partnerships to combat fraud.
According to Okeremi reliability, availability, sustainability, and recoverability are the winning aspects of this operation which guards against financial disasters.
