clearing system

8/18/2019 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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clearing system

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