Cbn new clearing systems rules

CBN (Central Bank of Nigeria) New Clearing Systems Rules refer to the guidelines and regulations set by the CBN for the clearing and settlement of transactions in the Nigerian financial system. Here are some key rules and guidelines:

  1. Clearing and Settlement Systems: The CBN has established two clearing and settlement systems:
    • The Nigerian Interbank Settlement System (NIBSS) for interbank transactions.
    • The Nigerian Clearing Corporation (NCC) for clearing and settlement of cheques and other paper-based instruments.
  2. Participation Requirements: To participate in the clearing and settlement systems, financial institutions must meet certain requirements, including:
    • Being licensed by the CBN.
    • Having a minimum capital requirement.
    • Meeting specific technology and infrastructure requirements.
  3. Clearing and Settlement Cycle: The clearing and settlement cycle typically takes 2-3 days, with the following stages:
    • Day 1: Settlement of transactions.
    • Day 2: Clearing of transactions.
    • Day 3: Reconciliation and reporting.
  4. Settlement: Settlement refers to the exchange of funds between participants. The CBN requires that all transactions be settled in Nigerian Naira (NGN).
  5. Clearing: Clearing refers to the process of verifying and confirming the validity of transactions. The CBN requires that all transactions be cleared through the NCC or NIBSS.
  6. Cheque Clearing: The CBN has introduced electronic cheque clearing (ECC) to reduce the time and cost of cheque clearing. ECC allows for the electronic transmission of cheque images and data for clearing and settlement.
  7. Funds Transfer: The CBN has introduced various funds transfer systems, including:
    • Electronic Funds Transfer (EFT).
    • Point of Sale (POS) transactions.
    • Mobile Money transactions.
  8. Reconciliation: Reconciliation is the process of verifying and confirming the accuracy of transactions. The CBN requires that all participants reconcile their transactions on a daily basis.
  9. Reporting: The CBN requires that all participants submit daily reports on their transactions, including:
    • Transaction reports.
    • Reconciliation reports.
    • Settlement reports.
  10. Penalties: The CBN imposes penalties for non-compliance with the clearing and settlement rules, including:
    • Late settlement penalties.
    • Non-compliance penalties.
    • Suspension or revocation of licenses.

These rules and guidelines are subject to change, and participants are required to comply with any updates or amendments.