Clearing system
Transcript of Clearing system
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FAISAL KHALID
SHAKEEL AHMED MEMON
WALEED BIN RASHID
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Agenda
Negotiable instrument and Endorsement
Clearing services
Clearing services offered by banks
Role of NIFT in clearingRole of SBP in clearing
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NE!TIAB"E INSTR#$ENT
A negotiable instrument is a documentguaranteeing t%e &ayment of a s&ecific amount ofmoney eit%er on demand or at a set time'
Promissory note( bill of e)c%ange and c%e*ue are
t%ree main ty&es'
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C%aracteristics of negotiableinstruments
Transferable o+ners%i&
,older-s rig%t to use
Contract for &ayment of money
No limitations on number of transfers
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Functions of Negotiable instruments
Substitute for money
Credit device
Record .ee&ing device
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Endorsement
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EN/!RSE$ENT
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T0PES !F EN/!RSE$ENT
BLANK ENDORSEMENT
FULL ENDORSEMENT
CONDITIONAL ENDORSEMENT
RESTRICTED ENDORSEMENT
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B"AN. EN/R!S$ENT
In blank endorsement transfer is not mentioned
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Full Endorsement
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Conditional Endorsement
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Restricted Endorsment
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Princi&les of Endorsment
!nly order instrument can only be endorsed'
Bearer instrument o+ners%i& transfers bydelivery'
If c%e*ue is crossed as 1Payees account only2 t%en
t%is c%e*ue can not be endorsed'
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Clearing
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3,AT IS C"EARIN4
Clearing is t%e system t%roug% +%ic% &rocessedare collected or &aid against instrumentsde&osited by customer'
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T0PES !F C"EARIN
IN3AR/ C"EARIN
!#T3AR/ C"EARIN
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C"EARIN INSTR#$ENTS
BAN.ERS C,E5#E
6' Pay order
7' /emand draft
8' Travelers c%e*ue
. PERS!NA" C,E5#E. /I9I/EN/ 3ARRENTS
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3,0 C,E5#ES RET#RN4
/ra+ee-s signature differ from s&ecimen
C%e*ue &ost dated
C%e*ue is out of date :stale;
Amount in +ords and figure differs
Alteration re*uired signature
C%e*ue multilated Payment sto& by dra+ee
Fund insufficient
Clearing stam& re*uired
Cancle &revious stam&
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3,0 C,E5#ES RET#RN4
Payees endorsement re*uired
Payees endorsement re*uired bank confirmation
!t%ers
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C"EARIN ,!#SE
A bankers< establis%ment +%ere c%e*uesand bills from member banks aree)c%anged( so t%at only t%e balances needbe &aid in cas%'
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NIFT
In t%e ma=or cities of Pakistan t%ousands of c%e*ue trans&orted every day'
T%ese c%e*ues re*uired sorting branc% +ise and t%eir scrutiny on daily basis+it%out delay of time'
For t%is great magnitude( SBP aut%ori>ed NIFT to %andle clearing in big cities'
NIFT is &roviding services in 6?@ cities'
NIFT coordinate members bank and SBP in settlement of t%eir claims'
3%ere t%ere is no any NIFT office( on t%e be%alf of SBP( NBP &erform clearing&rocess'
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PREPARIN NIFT C"EARIN
SCR#ITINISIN
STA$PIN
A//IN FI#RES
SEA"IN
/E"I9ER0
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SCR#ITN0 !F C,E5#E
/ate
Amount+ords figure mismatc%ed
Signature on alteration'
Tem&ered
Stale
$utilated
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R!"E !F
NATI!NA" INSTIT#TI!NA" FACI"ITATI!NTEC,!N!"!IES P9T "I$ITE/ :NIFT;
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NIFT SER9ICESNormal CLEARING
• C%e*ue &rocessing in 7 +orking days
SAME DAY CLEARING
• C%e*ue &rocessing in 8 %our &rocess
INTERCITY CLEARING
• C%e*ue &rocessing in ? %oursOVERNIGHT CLEARING
• 7? ,our clearing cycle
US DOLLAR CLEARING
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Role !f State Bank !f Pakistan inClearing
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