Markets

CBN suspends extension of settlement banking arrangement to all clearing sessions

by HOPE MOSES-ASHIKE

December 26, 2017 | 7:34 pm
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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.

 

HOPE MOSES-ASHIKE


by HOPE MOSES-ASHIKE

December 26, 2017 | 7:34 pm
  |     |     |   Start Conversation

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