Barclays adopts new technology to clear cheques same day they are deposited

Barclays bank Kenya has notified its clients that it will start to clear Barclay’s cheques on the same day they are presented as long as they are deposited before 4pm. The rule will take effect on 11^th March and will apply to cheques denominated in Kenyan Shillings, British pounds, Euros, and US dollars.

This is a positive development particularly for business people who wait for days before cheques clear. In most Kenyan banks, it takes an average of 3 working days to clear local currency cheques.

The Kenya Bankers Association recently announced improvements to the banking sector following the upgrade of the Automated Clearing House. The system enables banks to transfer funds electronically, verify and settle cheques, and carry out direct debit instructions. The upgraded ACH will see banks clear local cheques on the same day they are deposited; an improvement from the 3 days they took to clear. Foreign currency cheques will clear in two days, down from seven days.

The new system is expected to enhance liquidity in the banking industry and boost financial activity in Kenya.