SOME banks have quietly reverted to the three-day cheque clearing period fearing that the one day clearance was short and prone to fraud, investigations by the Star reveal.
Under the latest system a cheque should take two days at most-- the transaction day and an additional day such that in total its cleared within 48 hours. "It is not the banks that determine when a cheque clears, it is the system (automated clearance house at
You cannot decide as a bank on your own whether you are going to use T+1 or T+2," argued
Another senior bank official also told the Star that the system was being abused by some people who colluded with the drawer of the cheque and the drawee to defraud banks.
Other officials said the T+1 system was too short for the banks to conduct effective due diligence on the drawer and drawee as well as call-back among themselves to ascertain fund availability. Several people who have recently banked cheques told the Star that it took three days for their accounts to be credited.
However other banks are strictly observing the 48-hour clearance.
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