Electronic Cheque Clearing System Launches Tomorrow

Under the new system, the physical transfer of cheques between banks will end, while cheque clearing and settlement transactions will be completed digitally within the same business day.

According to a statement issued by the Cyprus Turkish Banks Association, the project was jointly designed by the Central Bank and the Association to modernize the existing cheque clearing system and transfer interbank cheque processing operations into a secure digital environment.

The system was developed following amendments to the TRNC Bills of Exchange Law and related regulatory and technical preparations.

With the launch of the Electronic Cheque Clearing System, banks will be able to process cheques electronically without the need for physical presentation between branches or institutions.

The Association said the system would enable faster and more secure cheque clearing and settlement procedures while ensuring that all interbank cheque transactions are finalized within the same working day.

The statement described the initiative as an important step in the digital transformation of the country’s payment systems.

It added that removing the requirement to physically transport cheques between bank branches would accelerate cheque payments and shorten the time needed for cheques to be converted into cash.

According to the Association, the faster clearing process will also help customers better manage cash flow, while the secure electronic transfer of cheque data and images will significantly reduce the risk of loss or theft associated with physical cheques.