ECC - Electronic Cheques Clearing System
Launch Date: November 2007
System Participants: Banks
Key Service: Processing cheque payments
Cheques are a written order to pay that is issued and signed by a person/entity and given to another person/entity as payment. Through the cheque, the issuer instructs their bank to withdraw money from their account and deposit it in the account of the cheque recipient. The process of reading and transmitting the cheque data to complete the financial transaction is called electronic clearing. It entails exchanging data, pictures, and cheque codes via the Electronic Clearing Center and calculating the net balances that arise from this procedure at a particular moment.
The Electronic Cheque Clearing Unit was launched in November 2007, building on then-existing automated cheque clearing services but offering enhanced clearing and collecting cheques on the same day at the bank level.
Cheques are a popular and key payment instrument in the Jordanian economy. More than 7 million cheques are used annually in Jordan, with their value exceeding 35 billion JOD. Given their importance in financial transactions, the Electronic Cheque Clearing Unit is considered a key pillar in the financial ecosystem.
Benefits of implementing Electronic Cheques Clearing System:
- Knowing prior to the specified time the bank’s financial position
- Optimal usage of funds
- Getting accurate information, statistics, and fast archiving system for cheques
- Minimizing risks for transferring paper cheques to and from banks
- Accessibility to cheques copies and data quickly and easily
- The system works 24-hours a day and therefore there is plenty of time to send cheques regardless of the volume
- Collect the cheque on the same depositing day
- Have the knowledge of whether the cheque is accepted or rejected on the same day
- Debit the cheque amount in the beneficiary’s account on the same day, based on depositing time
- Increase confidence in cheques
Legal cover for the system’s operations:
- The Central Bank of Jordan Law
- Electronic Transaction Law
- Rules, instructions, and regulations governing the work of Electronic Clearing
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