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What is Cheque Codeline Clearing with Cheque Truncation?
  • Cheque Codeline Clearing with Cheque Truncation is an Electronic Clearing System for cheques being introduced by the Bank of Ghana to replace the existing manual (paper-based) Clearing System.
  • The current system involves the movement and exchange of physical cheques across banks. The new system is therefore modernising cheque processing using the image and codeline data of the cheque, thereby stopping the physical cheque at the first point of deposit or at some other point en route to the paying bank.
  • The decision by a bank to "Pay or Not to Pay" a cheque will now be based on the cheque image and codeline data rather than the physical cheque. Since the image is readily available, the process of collection or realization of the cheque is speeded up and all things being equal the customer is given value much faster than would be the case if he had to wait for the physical cheque to reach the paying bank.
  • The infrastructure supporting the new Cheque Codeline Clearing system will be managed by the Ghana interbank Payment and Settlement Systems Limited(GhIPSS)
Why is there a need for Cheque Codeline Clearing with Cheque Truncation in Ghana?
  • While cheque usage is on the decline in most developed countries, cheques continue to be a major payment stream in many developing countries including Ghana. In the circumstances, to wish away cheques is simply not possible and hence the decision to improve the efficiency of the cheque clearing process by adopting CCC with CT.
  • CCC with CT in Ghana is necessary to increase the efficiency and timeliness of the clearing and settlement process for cheques so that customers can have timely access to cheque proceeds.
  • The new system will eliminate the cost of moving physical cheques.
  • It will also reduce the scope for clearing related frauds as manual intervention is virtually eliminated.
  • It is a more secure system than the current exchange of physical documents in which the cheque moves from one point to the other thereby creating delays and inconvenience to the customer.
How does CCC with CT System work?

The CCC with CT System works this way:

  • The collecting bank - the bank at which the cheque is first presented - will scan the physical cheque and capture the image and MICR codeline data. The physical cheque will remain at the collecting bank.
  • The scanned image of the cheque and the captured MICR codeline data will be transmitted electronically to a Centralised Processing Centre (GhIPSS)
  • The Centralised Processing Centre (GhIPSS) will transmit all electronic data to the Paying Banks
  • Returned cheques will be transmitted back to the collecting bank through the Central Processing Centre (GhIPSS) same day.
What precautions should bank customers take to avoid frauds?
  • Bank customers should issue image friendly cheques. They should preferably use dark coloured ink while writing cheques.
  • Care should be exercised in the use of rubber stamps, so that it does not interfere with the material portions of the cheque, which are; the date of the cheque, payee┬┤s name, amount and signature.
  • The use of rubber stamps, etc should not overshadow the clear appearance of these basic features in the image. This is to ensure that all essential elements of a cheque are captured in an image during the scanning process.
If the customer wants to see the paper cheques for any reason, what are the options available to the customer?
  • The physical instruments are required to be stored for a statutory period. It would be obligatory for presenting banks to warehouse the physical instruments for that statutory period.
  • In case a customer desires to get a paper instrument back, the instrument can be sourced from the presenting bank through the drawee bank.
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