Banking Exam Question - What is Clearing House? Describe the Provision of Electronic Cheque Clearing (ECC) in Nepal

Introduction - Electronic Cheque Clearing

The clearing house has been arranged for resolving the business and trade between different types of banks and financial institutions. This system plays the role of mediation between the banks. This helps to calculate the account. Development of the clearing system was first taken by Bank of England in 1854. The work of the clearing house in Nepal has been started by the Nepalese nation since 1968.

It can be divided into the mainstream mainly

i) Clearing Unit: This is the business of the checks under the Government of Nepal and the gold.

ii) Collection Unit: It has trades of commerce banks and check-under checks.

Institutional arrangements: Payment clearance and settlement arrangement has been made in accordance with Section 103 of Bank of Nepal, Bank of India, in which there is a provision of check payment, payment checks, conservation business, clearing and settlement. In Nepal, Clearing work is being done in Nepal Clearing House.

Type of Electronic Cheque Clearing

1) Normal Clearing

2) Express Clearing

Electronic Cheque Clearing Some Important Tips

i) checks clear to the HEouse House within 1 hr, clearing the check within 3 o'clock in the same day.

ii) If the Clearing House takes place after 1 o'clock, it is merely a trading time.

Iii does not go to clearing Friday check.

iv) Check Account Payee must be contained and check returns should be reached before the checkup and the required operation should be returned.