Clearing is the process of collection of proceeds of instruments of different banks by a collecting bank through some systematic procedures with the involvement of Central Bank.
Types of instruments:
- Cheques (CD, SB, Loan)
- Demand Draft
- Payment Order
- Clearing Stamp
- High Value
- High Value (return house)
- Regular (return house)
Inward (at branch):
- Receive all instruments from system
- Verify clearing stamp, crossing, endorsement etc
- Debiting respective account
- Ensure honor/dishonor in the system
- Corresponding with main branch (if necessary)
- Receive all instrument form the clients
- Crediting the same in respective account
- Prepare instruments of clearing
- Scanning & transfer to the system
Function of Main Branch :
- Receiving images of inward of all instruments and transfer to different branches.
- Scanning of clearing instruments for outward clearing and transfer to Bangladesh Bank end.
- Preparing voucher for inward, outward and return house and matching with Bangladesh Bank settlement.
- Ensure branches claims through issuing IBCA & IBDA.
- Corresponding with Bangladesh Bank
- Corresponding with other banks
- Preservation of all instruments
- Rectification of various dispute
- Over all supervision
About BACH Program:
Elaboration: Bangladesh Bank Automated Clearing House.
Important Features of BACH :
- Images of instruments is considered for clearing process.
- Settlement made through wave
- Physical movement of officers not required
- PBM : Presenting Bank Module
- CPS : Cheque Processing System
- Work Station
- Batch & Run
- Routing number
- BACH Program manager
Common Problems :
>> Less claim by other bank
>> Excess claim by other bank
>> Less claim by our bank
>> Excess claim by our bank
>> Fail to attend the clearing session
> Specially fail to attend the return session