cheque clearing & nift processing ii
TRANSCRIPT
![Page 1: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/1.jpg)
![Page 2: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/2.jpg)
UNIVERSTY OF KARACHIKARACHI UNIVERSITY BUSINESS
SCHOOL
MBA Banking & Finance 2014
Semester II
![Page 3: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/3.jpg)
ABOUT ASKARI BANKAskari Bank Ltd (formerly Askari Commercial Bank) is a commercial and retail bank in Pakistan It was founded on October 9, 1991, as a Public Limited Company. On June 21, 2013 the bank was acquired by Fauji Group. It is a branch of Army welfare organization. (AWT). The Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges
![Page 4: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/4.jpg)
ABOUT ASKARI BANKAskari Bank has expanded into a nationwide presence of almost 250 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 3000 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2013, the Bank had equity of Rs. 9 billion.
![Page 5: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/5.jpg)
![Page 6: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/6.jpg)
The transfer of fund from a branch of bank to the
other bank on which the instrument is drawn,
without involving cash through “state bank’s
clearing house”.
![Page 7: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/7.jpg)
Inward clearing Outward clearing
![Page 8: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/8.jpg)
“Inward clearing means cheques received by
the bank from other bank”
![Page 9: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/9.jpg)
The inward clearing process decreases the deposits of the bank.
The main operational task done by the banks were: Validation of customer account with the “CORE
BANKING SYSTEM”(CBU). Searching the physical instrument or return in. Archival of all the physical instrument.
![Page 10: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/10.jpg)
“Outward clearing means cheques sent for
collection”
![Page 11: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/11.jpg)
“The cheque of other bank, which the
account holder deposit in their account”
Outward clearing increases the deposits of the bank.
![Page 12: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/12.jpg)
LOCAL CHEQUE CLEARING
• (within the same geographical/clearing zone)INTERCITY CHEQUE CLEARING
• (drawn on a bank outside the local clearing zone)FOREIGN CHEQUE CLEARING
• (drawn on a bank/location outside the country of the collecting bank)
![Page 13: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/13.jpg)
When we receive inward clearing we have to
debit our customer account and when we receive
outward clearing we have to send it to relevant
bank for payment.
For example:
A cheque drawn on “HBL” deposited in “MCB” bank is an
outward cheque for “MCB” & is an inward for “HBL”
![Page 14: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/14.jpg)
In inward we are the
paying banks
in outward we are the
collecting banks on behalf
of the customers & will
launch the instrument in
clearing
![Page 15: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/15.jpg)
ChequesDemand draft Pay order Travelers cheques
![Page 16: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/16.jpg)
![Page 17: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/17.jpg)
NIFT - National Institutional Facilitation Technologies
(Pvt.). Ltd. was incorporated in September 1995 as joint
venture between a consortium of six banks and
entrepreneurs from the private sector. All commercial
banks and all of their branches in major cities avail
NIFT's services. As of January 2014, 38
commercial banks and their 8382 branches in 273 major
cities, and towns utilize NIFT's services through
28 Data Centers.
![Page 18: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/18.jpg)
NIFT commenced its ACH(automated clearing house)operations in 1996, after signing an agreement with THE STATE BANK OF PAKISTAN.
ACH is computer based clearing & settlement facility for interchange of electronic debits & credit among Financial Institution.
![Page 19: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/19.jpg)
OVERNTGHT CLEARING
• overnight clearing included return cheques processing (24 hour clearing cycle)
SAME DAY / HIGH VALUE CLEARING
• Same day/high value clearing included return cheque processing(3 hour clearing cycle)
![Page 20: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/20.jpg)
OVERNTGHT CLEARING
• overnight clearing included return cheques processing (24 hour clearing cycle)
SAME DAY / HIGH VALUE CLEARING
• Same day/high value clearing included return cheque processing(3 hour clearing cycle)
![Page 21: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/21.jpg)
MICR (magnetic ink character recognition) is a technology used to verify the legitimacy or originality of paper documents, especially checks. Special ink, which is sensitive to magnetic fields, is used in the printing of certain characters on the original documents.
![Page 22: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/22.jpg)
![Page 23: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/23.jpg)
![Page 24: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/24.jpg)
![Page 25: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/25.jpg)
![Page 26: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/26.jpg)
![Page 27: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/27.jpg)
![Page 28: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/28.jpg)
![Page 29: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/29.jpg)
![Page 30: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/30.jpg)
Crossing stamps Clearing stampsDate(which should be current)Endorsement stamp on back sideAmount in figures & words should be matchedSignature verificationTransfer Stamp
![Page 31: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/31.jpg)
![Page 32: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/32.jpg)
![Page 33: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/33.jpg)
![Page 34: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/34.jpg)
![Page 35: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/35.jpg)
![Page 36: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/36.jpg)
![Page 37: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/37.jpg)
![Page 38: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/38.jpg)
![Page 39: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/39.jpg)
NORMAL CLEARING CYCLE
![Page 40: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/40.jpg)
SAME DAY CLEARING CYCLE
![Page 41: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/41.jpg)
SPECIAL CLEARING CYCLE
![Page 42: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/42.jpg)
INTERCITY CLEARING CYCLE
![Page 43: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/43.jpg)
Central repositorySound management Cuts costShorter cycleSaves employees effortNo loss of cashConvenient
![Page 44: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/44.jpg)
Short cycle Responsive Safety Simplicity
![Page 45: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/45.jpg)
![Page 46: Cheque Clearing & Nift Processing II](https://reader031.vdocument.in/reader031/viewer/2022013105/55a532881a28abb35f8b467d/html5/thumbnails/46.jpg)