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Sunday, 23 February 2020


The cheque clearing system is the means whereby bank exchange cheque drawn through clearing system. Clearing system on the other hand is the medium through which proceeds of cheques and other payment instrument are transferred from the paying bank to collecting bank. The cheque clearing system is a system for presenting cheques by the collecting banks to the paying banks in order that they may be paid. It is true that cheques do not have to be presented through the clearing system, and do not have to be presented through banks at all if they are not crossed. Even if crossed, the cheque may be specially presented at the request of the payee directly to the branch of the paying bank on which it is drawn and avoid the clearing system. In practice, almost all cheques pass through the clearing system.
One of the functions of the commercial banks in Nigeria is clearing of cheques. Clearing of cheque could be defined as the process by which the validity of cheque is confirmed before the collecting banker gives value to the value. Cheque clearing is necessary because some corrupt persons do issue cheques when they have no money in their accounts to back-up the cheque. Due to this fact, banks need to device a means by which they will use to verify whether a cheque is actually backed up by deposits in the account of the person issuing out the cheque, and also that the cheques is properly drawn before they credit the account of the person depositing the cheques (drawee), this process means that the cheque when deposited, must get the drawer bank where the drawer has an account for verification. It is only the bank that can confirm if there is enough money to carry the cheque by looking into the customers ledger account. They will also make sure that the cheque is properly drawn.

The modern cheque clearing process is slightly more involved than merely transferring vault cash from one bank to another. A bank not only sends cheque out for processing, it also receives cheque from other banks seeking payment. A bank actually sends out thousands or even hundreds of thousands of cheque for processing every day. Cheque processing is not just between two banks, but between thousands of banks. Thus, some of the problems uncovered includes: The number of checks being processed is or are enormous, the cheque clearing process involves the physical transfer of paper cheque among banks and check clearing houses often take several days, and customers have to stand in long queues before they are been attended to.

The research goal and objectives are as follows:
1.3.1      Research Goal
The goal of this research is to develop a cheque clearing system that will enable banks and bankers to perform transactions and cheque clearing processes.

1.3.2      Research Objectives
In order to achieve the goal, below are the following objectives:
To show how the bank could transmit and receive images and data pertaining to each check via communication lines to and from the clearing house where settlement procedures take place.
To design and develop an automation of cheque clearing system for the banking sector in order to ensure same day cheque clearing and to facilitates paper check truncation at the branch level.
To highlight inter-bank cheque clearing processes via the clearing house through electronically conducted clearing processes which render physical paper movement needless, by carrying out review on related works.

The findings of this study will be of immense significant to bankers and their customers, the government and the country’s economy in general with the improvement of the clearing system that will be suggested in this research, the delays and frustrations of the clearing exercise will be reduced. This will quicken the operations of the banks thereby generating more profits for the banks. In addition to this, the banks customers will be cleared and certified before collecting their money since these will be done as soon as the cheques are presented in clearing operations thereby increasing the capital base and profit of the banks. Thereby, speeding up the clearing cycle of the bank, bringing about an increase in cash flow and allowing for better fund management, reduces the risk of cheque losses and delays, and acts as an essential management tool that helps one monitor the banking transactions and determine the right strategy for cheques management.

The scope of this study will cover the development of a cheque clearing system to perform the following functions:
Allow banks to snap images of cheques
Allow the electronic transfer of information cheques
Allows the connection between two or more banking institutions.

During this study, methods were adopted for the capturing and gathering of information about the system which will be suited to the type of system to be developed. The research methodology used, examines the methods that are necessary to achieve the required and relevant information connected to the project research with reduced expenses on effort, time and money. The sources of data collection used for this project work is a primary source which includes the use of journals (both published and unpublished), review of other related works and searching the internet with related articles on ‘cheque clearing system’ which was reviewed and downloaded to clarify the researcher’s understanding with a richer view of the system.

At the course of the research, some restrictions were truly faced that led to the limitation of the study. They are as follows:
The time it takes to make qualitative research.
The fund involved as to getting materials for the research project.
The cost of capturing and gathering information for this research project via online and reviewing.
Some information about the research project were not properly revealed and which in turn make requirement less accomplished.

Chapters: 1 - 5
Delivery: Email
Number of Pages: 50

Price: 3000 NGN
In Stock

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