The Eastern Caribbean Central Bank (ECCB) has issued an advisory regarding the maximum holding period for the clearance of cheques drawn on and deposited at any commercial bank within the Eastern Caribbean Currency Union (ECCU).
According to the ECCB, the period should not exceed two business days after the transaction date.
‘This means that a client who deposits a cheque on a Monday for example, should have access to the cleared funds no later than Wednesday, assuming no holidays occur between these days. All commercial banks operating in the ECCU have given their commitment to meet this standard,’ the bank said in a statement.
The ECCB observed that the Eastern Caribbean Automated Clearing House (ECACH), which was launched in September 2014, is an initiative between the ECCB and the commercial banks which operate within the ECCU.
‘The ECACH makes it possible for the clearing and settlement of cheques electronically and within a shorter period compared to what occurred previously. This reduction in the time it takes for transactions to settle contributes to the integrity of the payment system and the ease of doing business in the region,’ the statement noted.