Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Progress made towards one-day cheque clearance

Source: HM Treasury | | 08/05/2018

A new system that allows UK banks and building societies to scan cheques and clear them digitally rather than using the paper cheque for clearing is expected to be introduced from October 2018. The Image Clearing System (ICS) for cheques will cut down the clearing times from up to six days to just one day.

The changes will facilitate more banks offering their customers the opportunity to pay in their cheques electronically using banking apps. There had been moves to try and phase out the use of cheques altogether, but research found that cheques are still widely used especially by older people and in certain sectors of the economy.

In November 2017, HM Treasury consulted on proposals to make provision for two measures to support the introduction of the ICS. These measures seek to ensure that the introduction of the ICS will have no detrimental impact on existing cheque users.

The first measure will allow for a copy of a paid cheque together with other relevant information to be provided to the payer upon his or her request, and that the copy can be used as evidence of payment.

The second measure will ensure that if a customer paying using a cheque incurs a loss in connection with the presentment of a cheque under the ICS (that did not result from gross negligence or fraudulent activity on their part), and has not received compensation, the payee’s bank must compensate this customer for this loss. Whilst the current system achieves a similar result, the government was keen to ensure that the necessary legislation is in place to ensure this is the case for cheques cleared using the ICS.

 

 



Search Archive


Latest News

Company director imprisoned
10/10/2018 - More...
A director of a company that manufactured security systems has been found guilty of two counts of

The end of late payments by large organisations?
10/10/2018 - More...
The government has been trying to combat the widespread issue of large businesses abusing their

Importing from non-EU countries
10/10/2018 - More...
There are special rules for businesses that import goods from non-EU countries. Whilst most smaller

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login