A new and quicker way of clearing cheques that uses 21st century technology is going to be introduced across the banking industry. The new process will involve images of cheques being exchanged between the relevant banks and building societies rather than the paper cheques being physically moved around the country. The clearing process will be speeded up as a result, with cheques clearing at the end of the next weekday after being paid in, as opposed to the six weekdays it currently takes.
The new system will go live with some banks and building societies from 30 October 2017. Then, at some stage in the second half of 2018, all of the UK’s banks and building societies will clear all cheques via the image-based system to the faster timescale.
Over time, increasing numbers of cheques will be cleared using the new system and more and more customers will benefit from the faster timescales, until such time in the second half of 2018 when all cheques will clear more quickly. The precise date as to when this will happen will be announced by the industry in due course. Banks and building societies will also advise their customers at the appropriate time regarding their individual roll-out plans.
For more information about cheque imaging visit: http://www.chequeandcredit.co.uk/cheque_and_credit_clearing/cheque_imaging/.