NIBSS Commences Pilot Run on Cheque Truncation and Image Exchange

November 11th, 2011

Another giant stride was made by Nigeria Inter-Bank Settlement System (NIBSS) Plc with the upgrade of the Nigeria Automated Clearing System (NACS) infrastructure with the commencement of pilot run of Cheque Truncation and Image Exchange for the Nigeria financial system on Monday, August 1, 2011.

Cheque Truncation System is designed to enable banks to handle more cheque electronically, which should make cheque processing faster and more efficient. Currently, banks must physically move original paper cheques from the bank where the cheques are deposited to the bank that pays. This transportation can be inefficient and costly. By the new system just introduced by NIBSS, banks will instead of physically moving paper cheques from one bank to another capture a picture of the front and back of the cheque along with the associated payment information and transmit this information electronically. This process enables banks to reduce the cost of physically handling and transporting original paper checks, which can be very expensive.