The Kenya Bankers Association’s campaign on cheque truncation system took off without a hitch, with banks reporting massive support from clients. As earlier stated, 95% of the new design cheque books had already been printed for issuing and were available for use, which helped avoid delay once a customer placed an order.
Kenya Bankers Association owes the smooth sail of the upgrade to all bank customers country-wide for complying with the call to return their old chequebooks and apply for the new standard chequebooks. ‘We are indeed grateful to all bank customers for their prompt action in discontinuing using the old design cheque books. It would have been a different story without their support. We urge those customers who are yet to order their books to do so so that all they can reap the benefits of the new system,’ said Mr. Olaka, Kenya Bankers Association’s Chief Executive Officer.
“In terms of the volumes, we processed 49,612 cheques on the new CTS against 69,674 processed in the existing clearing house. This is approximately 71% of the volume expected. On the credit side, we processed 16,948 items on CTS against 21,458 items on the existing system which is about 79%.
The clearing position and values generated by the old system and the New Cheque Truncation system match, which reflect a high compliance level with the standards from Banks.
A few banks experienced challenges today on the communications link where it took some time to finalise transmission to the Automated Clearing House. The Wide Area Network provider was busy resolving the communication issues by last evening and we expect the second day to show some improvements.”
With the new cheque System now in place, bank customers countywide will begin enjoying shorter cheque clearing cycles, which means they will access their funds much faster. In addition, the new cheques come with deeply enhanced security features, which significantly improves the safety of customer funds and payments.. Banks also stand to benefit from the improved efficiencies as they will phase out the cumbersome practice of physically transporting cheques from bank branches to the clearing house using courier services. This will reduce paper work and opportunities for fraud. Kenya Bankers Association urges the few customers yet to comply to urgently do so as old-design chequebooks will henceforth take up to 21 days to clear.
The Cheque Truncation System is yet another milestone achievement by the Kenya Bankers Association and the entire banking industry. By collaborating with other partners most notably the Central Bank of Kenya, KBA and the member banks continue to develop initiatives aimed at fostering greater financial inclusion, more affordable banking and a secure and sustainable banking sector. Most recent initiatives include the value capping mechanism to mitigate fraud perpetrated through high value cheques, establishment of regional currency centers to enhance access to cash by banks and also the credit information sharing project for boosting customer access to credit.