CBN suspends extension of settlement banking arrangement to all clearing sessions
by HOPE MOSES-ASHIKE
December 26, 2017 | 7:34 pm| | | Start Conversation
The Central Bank of Nigeria (CBN) has suspended extension of settlement banking arrangement to all the clearing sessions till further notice.
The CBN had in a circular issued in November 10, 2017 extended settlement banking arrangement to all the clearing sessions with effect from January 2018.
In a circular signed by Dipo Fatokun, director, banking and payments system, the existing policy that was introduced in |April 2004 on settlement banking relationship for session 1 and 2 (cheque and NEFT clearing instruments) only shall remain in force.
The CBN had in April 1, 2004, introduced settlement banking framework, which categorised deposit money banks into settlement and non-settlement banks.
The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during session 1 and 2. The non-settlement banks enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly.
Big Read |