Central bank calls BFIs to mandatory shift to electronic cheque, NCHL-ECC upgrades system

The central bank has asked the banks and financial institutions to start using electronic cheque clearing from mid-December as the Nepal Clearing House Ltd (NCHL) has upgraded its electronic cheque clearing system, which has already come into use since the last week.

The new software comes with additional business functionalities making it easier for member banks and financial institutions to use the system, said chief executive of the clearing house Neelesh Pradhan.

"The performance and reliability of the NCHL-ECC system have also been improved," he said, expecting the new version to help NCHL handle increased number of memberships and thus increased cheque volume.

NCHL has already signed a membership agreement with 70 banks and financial institutions including Nepal Rastra Bank, 32 commercial banks, 19 development banks and 18 finance companies, of which, few of the newly joined members will start their NCHL-ECC service in the next couple of weeks.

NCHL expects to increase this number further in the coming days. Some of its member banks and financial institutions have also started providing electronic cheque clearing services from branches outside the valley.

NCHL has also approached other banks and financial institutions located outside Kathmandu valley for membership and the response has been positive.

NCHL, at present, clears Nepali rupees, US dollar, euro and British pound denominated cheques through its NCHL-ECC system and has processed more than 1.1 million cheques by the end of Kartik (mid-November) at an average of 8,108 cheques per day.