DOCSLIB.ORG

Electronic Cheque Clearing Rule Book

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Electronic Cheque Clearing Rule Book Electronic Cheque Clearing Rule Book November 2011 Kathmandu, Nepal ECC Rule Book TABLE OF CONTENTS TABLE OF CONTENTS.........................................................................................2 DEFINITIONS.........................................................................................................5 1 INTRODUCTION............................................................................................8 1.1 ECC System.........................................................................................................8 1.2 Legal Framework.................................................................................................8 1.3 Objectives ............................................................................................................9 2 OPERATING RULES....................................................................................10 3 CURRENCIES ...............................................................................................11 4 THRESHOLDS ..............................................................................................12 5 MEMBERSHIP AND MEMBERS’ TYPES .................................................13 5.1 Membership .......................................................................................................13 5.1.1 Direct member ...........................................................................................13 5.1.2 Indirect Member.........................................................................................13 5.1.3 Special Member .........................................................................................14 5.1.4 Member Agreement ...................................................................................14 5.2 Members’ Types ................................................................................................14 6 MEMBERS’ REGISTRATION .....................................................................15 6.1 Registration........................................................................................................15 6.2 Members Prerequisites.......................................................................................15 7 MEMBERS RIGHTS AND OBLIGATIONS................................................16 7.1 Operating Rules and Rules Book Compliance...................................................16 7.2 Participation Eligibility......................................................................................16 8 MEMBERS MANAGEMENT.......................................................................17 8.1 Member Suspension...........................................................................................17 8.2 Member Resumption..........................................................................................17 8.3 Member Termination .........................................................................................17 8.4 Member Withdrawal ..........................................................................................17 8.5 Member Notification..........................................................................................17 8.6 Identification......................................................................................................18 2 ECC Rule Book 9 MEMBER CONNECTIVITY........................................................................19 9.1 System Architecture...........................................................................................19 9.2 PKI and Certification Authority.........................................................................19 10 SYSTEM OPERATION .............................................................................20 10.1 Daily Operation..................................................................................................20 10.2 Clearing Sessions...............................................................................................20 10.3 Regular Clearing Sessions .................................................................................21 10.4 Express Clearing Sessions .................................................................................21 10.5 Friday Session....................................................................................................22 10.6 Cheque Clearing Flow .......................................................................................22 10.7 Business Calendar..............................................................................................23 10.8 Session Exceptions.............................................................................................23 10.8.1 Session Extension ......................................................................................23 10.8.2 Session Termination...................................................................................23 10.8.3 Session Re-schedule...................................................................................23 10.9 System Parameters.............................................................................................23 10.10 Clearing Sessions Settlement.........................................................................24 10.10.1 Settlement Schedule...............................................................................24 10.10.2 Settlement Process .................................................................................24 10.11 Finality of Payment........................................................................................24 10.12 Modification of Clearing Session ..................................................................24 11 CHEQUE STANDARDS AND SPECIFICATIONS.................................25 12 RESPONSIBILITIES .................................................................................26 12.1 Presenting Member Responsibilities..................................................................26 12.2 Paying Member Responsibilities .......................................................................28 12.3 Clearing House Responsibilities ........................................................................28 12.4 NRB Responsibilities.........................................................................................29 13 CHEQUE RETURN PROCESSING..........................................................31 13.1 System Return Reasons......................................................................................31 13.2 Paying Member Return Reasons:.......................................................................32 14 FEES AND CHARGES..............................................................................34 14.1 Implementation and Setup Fee...........................................................................34 3 ECC Rule Book 14.2 Annual Support Fees..........................................................................................34 14.3 Transaction Processing Fees ..............................................................................34 14.4 Refunding Customers.........................................................................................34 15 CONTINUITY OF BUSINESS..................................................................36 15.1 Helpdesk ............................................................................................................36 15.2 Communication Failure at the Member’s Site ...................................................37 15.3 Failure at the ECC Main Site .............................................................................37 15.4 Clearing House Continuity of Business Site......................................................37 16 Dispute Resolution......................................................................................39 16.1 Dispute between Clearing House and Members ................................................39 16.2 Dispute between the members ...........................................................................39 16.3 Responsibilities..................................................................................................39 16.3.1 Insurance:...................................................................................................39 16.3.2 Indemnify...................................................................................................40 16.3.3 Confidentiality ...........................................................................................40 16.3.4 Impossibility to provide the services .........................................................41 17 National Archive.........................................................................................42 4 ECC Rule Book DEFINITIONS Term Definition Accepted Cheques The cheques that were replied by the Paying Members as accepted. Apparent Alteration The original cheque looks like changed. ECC Electronic Cheque Clearing System an interbank cheque clearing solution. NRB Nepal Rastra Bank. Cheque Cycle A counter that shows the number of the presentment times for a cheque in the ECC. Cheque Date The date that is written on the cheque (due date). Cheque Truncation Scanning the cheque and transferring its electronic image and data without moving the physical cheque to the Paying Member. Clearing Date (T) The date on which a cheque shall move from the Presenting Member to the Paying Member to be cleared. In other words, it is the date on which the customer account will be credited in the Presenting Member. Clearing House
Load more

Recommended publications
  • Cheque Collection Policy
    Cheque Collection Policy Date: November 14, 2017. Version: 1 0 | P a g e Table of Content 1. Policy Content .......................................................................................................................................... 2 2. Document Control ................................................................................................................................... 6 3. Revisions to the Policy ............................................................................................................................. 7 4. Persons & Departments involved ............................................................................................................ 7 5. Glossary ................................................................................................................................................... 7 6. Appendix .................................................................................................................................................. 8 © 2017 Fincare Small Finance Bank, Cheque Collection Policy 1 | P a g e All Rights Reserved 1. Policy Content All personnel carrying out their duties with regard to the Cheque Collection function should ensure that they comply with the requirements of this policy. All Appendix referenced in this section - content mentioned to be moved into the body of the policy aside from Appendix I For Frequently Asked Questions (FAQs) regarding this policy please refer to Appendix II With reference to the RBI regulation guidelines detailed in
    [Show full text]
  • Bank Tariff Guide for HSBC Retail Banking and Wealth Management Customers
    Bank tariff guide for HSBC Retail Banking and Wealth Management Customers Tips to help switch you on to best value banking. Effective 1 November 2018 Issued by The Hongkong and Shanghai Banking Corporation Limited Tariffs/1NOV2018 Bank Bank tariff guide for HSBC Retail Banking and Wealth Management Customers Welcome to HSBC’s easy guide to services and fees. You’ll find helpful sections with tips on how to save both time and money. With more options and more efficiency, we’re providing you better banking value and even more reasons to bank with HSBC. 1 This guide is intended to give you a clear picture of the fees we charge for our most commonly To save money, time and effort, used services. Please note that the sections on specific account types should be read in conjunction with the section entitled ‘General services – all accounts’. please log on to HSBC Internet Banking at The charges in this guide were correct at the time of release but remain subject to change. For your own interest, please seek confirmation of the prevailing charge related to the service www.hsbc.com.hk or download HSBC HK Mobile you need. These charges are applicable only to accounts maintained in the Hong Kong SAR with The Hongkong and Shanghai Banking Corporation Limited, which reserves the right to Banking app at App Store/Google Play™ for introduce charges not included in this guide. For charges which are not mentioned in this guide, please refer to the relevant promotional materials or ‘Commercial Tariffs for Hong Kong internet/mobile banking services.
    [Show full text]
  • New Monetarist Economics: Methods∗
    Federal Reserve Bank of Minneapolis Research Department Staff Report 442 April 2010 New Monetarist Economics: Methods∗ Stephen Williamson Washington University in St. Louis and Federal Reserve Banks of Richmond and St. Louis Randall Wright University of Wisconsin — Madison and Federal Reserve Banks of Minneapolis and Philadelphia ABSTRACT This essay articulates the principles and practices of New Monetarism, our label for a recent body of work on money, banking, payments, and asset markets. We first discuss methodological issues distinguishing our approach from others: New Monetarism has something in common with Old Monetarism, but there are also important differences; it has little in common with Keynesianism. We describe the principles of these schools and contrast them with our approach. To show how it works, in practice, we build a benchmark New Monetarist model, and use it to study several issues, including the cost of inflation, liquidity and asset trading. We also develop a new model of banking. ∗We thank many friends and colleagues for useful discussions and comments, including Neil Wallace, Fernando Alvarez, Robert Lucas, Guillaume Rocheteau, and Lucy Liu. We thank the NSF for financial support. Wright also thanks for support the Ray Zemon Chair in Liquid Assets at the Wisconsin Business School. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Banks of Richmond, St. Louis, Philadelphia, and Minneapolis, or the Federal Reserve System. 1Introduction The purpose of this essay is to articulate the principles and practices of a school of thought we call New Monetarist Economics. It is a companion piece to Williamson and Wright (2010), which provides more of a survey of the models used in this literature, and focuses on technical issues to the neglect of methodology or history of thought.
    [Show full text]
  • Cheque Collection Policy
    CHEQUE COLLECTION POLICY 1. Introduction 1.1. Collection of cheques, deposited by its customers, is a basic service undertaken by the banks. While most of the cheques would be drawn on local bank branches, some could also be drawn on non-local bank branches. 1.2. With the objective of achieving efficiencies in collection of proceeds of cheques and providing funds to customers in time and also to disclose to the customers the Bank's obligations and the customers' rights, Reserve Bank of India has advised Banks to formulate a comprehensive and transparent Cheque Collection Policy (CCP) taking into account their technological capabilities, systems and processes adopted for clearing arrangements and other internal arrangements. Banks have been advised to include compensation payable for the delay in the collection of cheques in their Cheque Collection Policy. 1.3. This collection policy of the Bank is a reflection of the Bank’s on-going efforts to provide better service to their customers and set higher standards for performance. The policy is based on principles of transparency and fairness in the treatment of customers. The bank is committed to increased use of technology to provide quick collection services to its customers. 1.4. This policy document covers the following aspects: 1.5. Collection of cheques and other instruments payable locally, at centers within India and abroad. 1.6. Bank’s commitment regarding time norms for collection of instruments. 1.7. Policy on payment of interest in cases where the bank fails to meet time norms for realization of proceeds of instruments. 1.8.
    [Show full text]
  • TORC3: Token-Ring Clearing Heuristic for Currency Circulation
    TORC3: Token-Ring Clearing Heuristic for Currency Circulation Carlos Humes Jr.∗, Marcelo S. Lauretto†, Fábio Nakano†, Carlos A.B. Pereira∗, Guilherme F.G. Rafare∗∗ and Julio M. Stern∗,‡ ∗Institute of Mathematics and Statistics of the University of São Paulo, Brazil †School of Arts, Sciences and Humanities of the University of São Paulo, Brazil ∗∗FinanTech Ltda. ‡[email protected] Abstract. Clearing algorithms are at the core of modern payment systems, facilitating the settling of multilateral credit messages with (near) minimum transfers of currency. Traditional clearing procedures use batch processing based on MILP - mixed-integer linear programming algorithms. The MILP approach demands intensive computational resources; moreover, it is also vulnerable to operational risks generated by possible defaults during the inter-batch period. This paper presents TORC3 - the Token-Ring Clearing Algorithm for Currency Circulation. In contrast to the MILP approach, TORC3 is a real time heuristic procedure, demanding modest computational resources, and able to completely shield the clearing operation against the participating agents’ risk of default. Keywords: Bayesian calibration; Clearing algorithms; Heuristic optimization; Multilateral netting; Operational risk; Payment systems; Real-time heuristic procedures. 1. INTRODUCTION Clearing algorithms are at the core of modern payment systems, facilitating multilat- eral netting, that is, the settling of multilateral credit messages with (near) minimum transfers of currency. Traditional clearing procedures use batch processing based on mixed-integer linear programming algorithms. Large scale mixed-integer programming demands intensive computational resources; most of the traditional clearing algorithms require large mainframe computers. Furthermore, this approach delays all payments to after the batch processing (usually overnight). Moreover, batch processing introduces an operational risk originated from the possibility of a participant’s default in the iter-batch processing period.
    [Show full text]
  • International Barter
    WORKING PAPER ALFRED P. SLOAN SCHOOL OF MANAGEMENT INTERNATIONAL BARTER Adrian E. Tschoegl Sloan School of Management M.I.T. Working Paper #996-78 May 1978 MASSACHUSETTS INSTITUTE OF TECHNOLOGY 50 MEMORIAL DRIVE CAMBRIDGE, MASSACHUSETTS 02139 INTERNATIONAL BARTER* Adrian E. Tschoegl Sloan School of Management M.I.T. Working Paper #996-78 May 1978 *I would like to thank Edward M, Graham, Donald R, Lessard, N.G. Tschoegl, and N.W. Tschoegl for their comments, criticism, and assistance. -1- I. Introduction Barter is the oldest form of trade. The payment for goods with goods predates the invention of money and is still with us today. This paper has two purposes: first, to expose the student of international business to this form of trade between nations; and second, to contradict the sentiments ex- pressed in this quotation: "It is difficult for Americans, so committed to free trade, to understand the logic behind trade without money. Per- haps there is no 'logic,' at least in terms of traditional Western economic theory. Maybe the-re are only reasons that few Americans can understand and even fewer can accept. "' In this section we summarily review the nature of 'trade without money' and its recent history. Section II examines the various modes of barter in some detail, focusing on the common provisions and pitfalls of such transactions. Section III discusses two proximate causes for barter, price distortions and the need for liquidity, and two benefits, improvement in the terms of trade and the creation of long-term contracts and trading relationships. Section IV concerns itself with the political-economy of barter, that is, the reasons behind the proximate causes.
    [Show full text]
  • Ben S Bernanke: Clearinghouses, Financial Stability, and Financial Reform
    Ben S Bernanke: Clearinghouses, financial stability, and financial reform Speech by Mr Ben S Bernanke, Chairman of the Board of Governors of the Federal Reserve System, at the 2011 Financial Markets Conference, Stone Mountain, Georgia, 4 April 2011. The original speech, which contains various links to the documents mentioned, can be found on the US Federal Reserve System’s website. * * * I am pleased to speak once again at the Federal Reserve Bank of Atlanta’s Financial Markets Conference. This year’s conference covers an interesting mix of topics bearing on the vital ongoing global debate on how best to prevent and respond to financial crises. Tonight I would like to discuss post-crisis reform as it relates to a prominent part of our financial market infrastructure – namely, clearinghouses for payments, securities, and derivatives transactions. This audience, I know, recognizes the importance of what is often called the “plumbing” of the financial system – a set of institutions that very safely and efficiently handles, under most circumstances, enormous volumes of financial transactions each day. Because clearinghouses and other parts of the financial infrastructure fared relatively well during the crisis – despite moments of significant stress – the public debate on financial reform has understandably focused on the risks posed by so-called too-big-to-fail financial firms, whose dramatic failures or near failures put our financial system and economy in dire jeopardy. Nevertheless, the smooth operation and financial soundness of clearinghouses and related institutions are essential for financial stability, and we must not take them for granted. Importantly, title 8 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) contains provisions aimed at improving the transparency, resilience, and financial strength of clearinghouses, which the act calls financial market utilities.
    [Show full text]
  • Nber Working Paper Series David Laidler On
    NBER WORKING PAPER SERIES DAVID LAIDLER ON MONETARISM Michael Bordo Anna J. Schwartz Working Paper 12593 http://www.nber.org/papers/w12593 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2006 This paper has been prepared for the Festschrift in Honor of David Laidler, University of Western Ontario, August 18-20, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2006 by Michael Bordo and Anna J. Schwartz. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. David Laidler on Monetarism Michael Bordo and Anna J. Schwartz NBER Working Paper No. 12593 October 2006 JEL No. E00,E50 ABSTRACT David Laidler has been a major player in the development of the monetarist tradition. As the monetarist approach lost influence on policy makers he kept defending the importance of many of its principles. In this paper we survey and assess the impact on monetary economics of Laidler's work on the demand for money and the quantity theory of money; the transmission mechanism on the link between money and nominal income; the Phillips Curve; the monetary approach to the balance of payments; and monetary policy. Michael Bordo Faculty of Economics Cambridge University Austin Robinson Building Siegwick Avenue Cambridge ENGLAND CD3, 9DD and NBER [email protected] Anna J. Schwartz NBER 365 Fifth Ave, 5th Floor New York, NY 10016-4309 and NBER [email protected] 1.
    [Show full text]
  • Exchange Clearing of Financial Transmission Rights (Eftrs)
    APRIL 22, 2021 Exchange Clearing of Financial Transmission Rights (EFTRs) NEPOOL Budget & Finance Subcommittee Meeting Cheryl Arnold DIRECTOR, FINANCE & ACCOUNTING ISO NEW ENGLAND Sylvie Jobes SENIOR MANAGER, RISK & STRATEGIC ANALYSIS NODAL EXCHANGE, LLC ISO-NE PUBLIC Contents of Presentation Page(s) • Project Objectives 3 • Introduction: Current Financial Transmission Rights (FTR) Mechanisms 4-7 • Overview of Design Concept 8-9 • Proposed Design 10-33 – Participating Entities – Background on Clearing House Model – Sequence for Exchanging FTR Awards to Futures Contracts – Billing, Collections and Settlement Process – Benefits of Proposed Design/Risk Management • Legal and Regulatory Considerations 34 • Tentative Project Schedule 35-36 ISO-NE PUBLIC 2 Project Objectives • Replace ISO-NE Financial Assurance requirements for holding Financial Transmission Rights (FTRs) with clearing of equivalent futures contracts by a CFTC jurisdictional exchange / clearing house – A clearing house is better positioned to handle valuation (margin) on an ongoing basis – Default risk is shifted from ISO-NE’s market participants to clearing house • Facilitate secondary market trading ISO-NE PUBLIC 3 Introduction: Current FTR Mechanisms (1) • An FTR is a financial instrument − acquired in an ISO-NE auction − that entitles the holder to receive compensation for congestion costs. It can be used to hedge the Day-Ahead LMP congestion component difference on a specific path between receipt and delivery points in the New England energy market. • Revenues from the
    [Show full text]
  • Cheque Clearing Operations System Agreement
    CHEQUE CLEARING OPERATIONS SYSTEM AGREEMENT ARTICLE 1- PARTIES This Agreement has been executed by and between İstanbul Takas ve Saklama Bankası A.Ş. operating at Reşitpaşa Mahallesi, Borsa İstanbul Caddesi, No:4 Sarıyer 34467 İstanbul and …………………………………………operating at ............................, on the basis of the following terms and conditions. ARTICLE 2- DEFINITIONS AND ABBREVIATIONS The following terms used in this Agreement shall bear the following meanings, Relevant Legislation: The Cheque Law No. 5941 published in the Official Gazette numbered 27438 and dated 20 December 2009, article 10 of the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions published in the Official Gazette numbered 28690 and dated 27/06/2013, the Regulation on Activities of Payment and Securities Settlement Systems published in the Official Gazette numbered 29044 and dated 28/06/2014, the Regulation on Cheque Clearing Operations published in the Official Gazette numbered 30446 and dated 09/06/2018, and İstanbul Takas ve Saklama Bankası A.Ş. Cheque Clearing, Clearing and Settlement and Risk Management System Rules and other relevant legislation. Participant: The banks being a party to this Agreement, which are subject to the Banking Law No. 5411 and dated 19/10/2005. Concerned Participant: The participant at which the account on which the cheque has been drawn is held. System: The electronically-operated Takasbank Cheque Clearing System established by Takasbank in accordance with article 5 of the Regulation to facilitate payment of the cheques on account between the bank branches, which intermediates conduct of clearing and settlement operations. System Rules: İstanbul Takas ve Saklama Bankası A.Ş.
    [Show full text]
  • STARCOIN Payment Scheme Edition 27.04.1999
    STARCOIN Payment scheme Edition 27.04.1999 Author O. Pannke - 3FE5 Status FINAL/CONFIDENTIAL Version 1.3.0/Revision 28.01.99 AVERS confidential Giesecke & Devrient GmbH Prinzregentenstr. 159 Postfach 80 07 29 81607 München © Copyright 1999 – All rights reserved Giesecke & Devrient GmbH Prinzregentenstr. 159 Postfach 80 07 29 81607 München Germany AVERS confidential The information or material contained in this document is property of G&D/GAO and any recipient of this document shall not disclose or divulge, directly or indirectly, this document or the information or material contained herein without the prior written consent of G&D/GAO. All copyrights, trademarks, patents and other rights in connection herewith are expressly reserved to the Giesecke & Devrient group of companies and no license is created hereby. All brand or product names mentioned are trademarks or registered trademarks of their respective holders Content Content 1 Introduction ..................................................................................................................................................4 1.1 Scope of this document.........................................................................................................................4 1.2 Versions of this document ....................................................................................................................4 1.3 Abbreviations........................................................................................................................................5 2
    [Show full text]
  • Confirm Receipt for Cheque
    Confirm Receipt For Cheque jamboreeTedie remains redistributing arenicolous: fourth. she Well-thought-of photograph her and gyrostabilizers codicillary Vaclav extemporised defied so too vocationally humblingly? that Franz Oliver cross-dress hosts his googlies. blandly as droning Michal jollified her Have any government services should review decisions and cheque receipt is Go burn your email account and amateur for a confirmation email from PayPal. Track and fall Your US Postage Delivery Stampscom. We are pleased to strand you prepare we have received your Cheque 000-111-2222 Dated dd-mm-yy Worth Amount of money which i donate us. It obvious and confirm receipt of receiving all items written proof of the original and. How do authorities know if USCIS received my application 2021 Stilt. Sanjan nager public education trust. Payment Information Student Accounts Office George. Reconcile your accounts as soon for possible preferably within 30 days of receipt. Small business cash flow and wildlife sure you're receiving good checks. If you investigate by personal check monitor your note account to note the date i check cleared This call confirm if by USCIS When will Receive state I-797. No new mail piece of cheque for clearance process used for this purpose: note the cheques. Be confirmed receipt for receipts from a cheque. Doesn't mean their whole application package has game a confirmed receipt. Acknowledge the met of there report gain or other situation a directive or decision Confirm a. You for confirming payment confirmation letters what information and cheque or initial represents a foreign currency from using the cheques.
    [Show full text]