Cheques can now clear in a day - GhIPSS

Businesses and individuals are now able to pay in a cheque and have their accounts credited on the same day, following the successful implementation of an Express Cheque clearing system.

The system, introduced by Ghana Interbank Payment and Settlement System (GhIPSS), is to provide a quicker option for people to get value for their cheques.

Banks now clear cheques electronically, bringing the clearing cycle to a maximum of three days compared to the past when it could take up to a week or more. However, to make the clearing even faster, a special window has been created whereby the public can request the banks to clear a cheque by express.

Speaking in an interview, the Chief Executive of GhIPSS Archie Hesse explained that cheques to be cleared by Express are to be paid in before 11 o’clock in the morning and the account of the payee will be credited from 2 o’clock in the afternoon.

Some people are not enthused about receiving cheques as a form of payment since they might have an immediate need for money, but with the introduction of the Express Service, Mr. Hesse said, “cheques are as good as cash” since the account of the payee can be credited in a matter of hours after the cheque is paid in.

Mr. Hesse therefore encouraged the public to request for express clearing of their cheques if they urgently need the money, adding that it is not expensive. He also admonished people who issue cheques to ensure that they always have enough money in their accounts, since the recipient can request Express Clearing.

“The days when you issued a cheque and hope to deposit money later on because clearing took a long time are long gone, because cheques can clear on the same day,” he said.

The GhIPSS CEO also urged the banks to see the express service as a business development tool that can be tailored for various services for their customers, which invariably boosts their profit.

GhIPSS was set up by the Bank of Ghana in 2007 to improve on the country’s payment systems, and has since been introducing services to achieve this objective. It is the hope of management that the express clearing of cheques will add to other factors to make banking more attractive, so that more people will be encouraged to bank in order to reduce the huge unbanked population.