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Banks Launch New Automated Cheque Clearing Application

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  • Banks Launch New Automated Cheque Clearing Application

The Deposit Money Banks in the country, in collaboration with the Nigeria Inter-Bank Settlement System, have launched a new automated cheque clearing application called i-Teller.

The i-Teller, which is the new National Automated Clearing System, allows banks to clear cheques within hours.

The DMBs, in collaboration with NIBSSS and Precise Financial System, began the test-running of the new application (infrastructure) 11 weeks ago.

A total of N5tn worth of cheques from 10 million transactions has been processed through the new platform in the past 11 weeks.

The Managing Director, NIBSS, Mr. Ade Sonubi, who spoke at the ‘’Post Go-Live Session” held with the representatives of the DMBs on Tuesday, said NIBSS had been on the project for the past 18 months but it went live in the banks about 11 weeks ago.

He said the new application could allow banks to do a number of payment and non-payment transactions.

Sonubi said, “The platform we have now can allow cheques to be cleared within hours. This is what we called Special Clearing. This can happen such that as soon as a cheque is presented, it is treated in an isolated manner and value can be made. That is possible on this new system. It is not the norm but it is possible now. What you need to do is to inform the bank so that they take special care in quickly processing the cheque. The system also allows for multiple clearing sessions as well.

”Today, we have about four clearing sessions. The advantage of having multiple clearing sessions is that the net amount against each bank is smaller, so you are able to manage settlement risks. So, we can have as many as you want and that is the flexibility that we built into it. We can issue a cheque and it can be cleared within six hours, four hours or at whatever duration we agree.”

The Head, Domestic Payments and Collections, Union Bank Plc, Mr. Kolawole Aminu, described the platform as being user-friendly.

Asked why banks are adopting a new application when countries are planning to phase out cheques, Aminu said, “Phasing out cheques is a development across the globe. You will agree with me that the United Kingdom that tried to hurry up that process has had to even slow it down because of the obvious implications they experienced. In our system here in Nigeria, we are aware that the system will come to a time in the future where cheques will not be used as a mode of payment.

“But as at today, we are talking of transactions that are worth over N5tn that has been processed on this platform just within 11 weeks. We are talking of over 10 million in terms of the volume of cheques. That tells you how much we do with this mode of payment.”

The Managing Director, Precise Financial System, the ICT firm that collaborated with NIBSS on the project, Yele Okeremi, said the firm was proud to work with NIBSS on the project.

Okeremi said, “Like the MD of NIBSS said, what we have given is an infrastructure. It is a switch. It can switch anything. I look forward to when that infrastructure can be used for other transactions. When a country talks about independent, sovereignty, these are some of the things that matter. How much of your services are internal to you? Are you breathing through the nose of other countries and you claim you are independent? These are some of the things that make one happy and we can say that Nigeria’s problems are being gradually solved. There is a big road ahead.”

A representative of the Banking and Payment System unit of the CBN at the event, Mr. Ojerinde Ademola, said the CBN was happy with the move and would continue to support the industry to grow.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Finance

Remove Face Mask When Using ATM, Banks Tell Customers

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Face Mask May Cause ATM Transaction Failure, Banks Tell Customers

Deposit Money Banks have said due to their face recognition technology, customers wearing face masks may experience service failure while using the Automated Teller Machines (ATMs).

In an email issued to customers by Fidelity Bank, the bank said why the use of face masks is important to curb the spread of COVID-19 pandemic, customers should remove when performing ATM transactions.

The bank said “Wearing of face masks is a safety and precautionary measure we must all adhere to in this period of the COVID-19 pandemic.

“However, we advise that you remove your face mask while making withdrawals or carrying out ATM transactions to allow our ATM properly recognise you.

“Fidelity Bank ATM machines have face detection features installed to curb incidences of fraudulent ATM withdrawals.

“Consequently, you may not be able to carry out any transaction if our ATMs are not able to properly recognise you. We apologise for the inconvenience that this may cause you.”

Meanwhile, Guaranty Trust Bank plc continues to ease accessibility for all customers and advised customers to protect themselves.

GTBank said, “When visiting any of our branches, kindly protect yourself by wearing a face mask at all times. It is also very important that you keep a safe distance when in a queue inside or outside the branch.

“Before visiting any of our branches, please remember that you can withdraw up to N150,000 at all our ATMs and that you can do most of your banking from the safety of your home.”

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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