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
  •   Others

Related Terms:

  • Crossing
  • Clearing Stamp
  • Endorsement

Clearing Sessions:

  • High Value
  • High Value (return house)
  • Regular
  • 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)
Outward clearing (at branch):
  • 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
  •  Scanner
  • 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