Check clearing

Check clearing

The movement of a check from the depository institution at which it was deposited back to the institution on which it was written; the movement of funds in the opposite direction and the corresponding credit and debit to the involved accounts. The Federal Reserve operates a nationwide check-clearing system.

Check Clearing

The process in which a bank collects the funds on a check deposit from the issuing institution. Check clearing involves the bank in which the check was deposited mailing the check to the issuing bank. The issuing bank then credits the deposit bank the funds on the check, assuming the check writer had the funds in his/her account. The deposit bank in turn credits the individual account into which the check was deposited. In the United States, the Federal Reserve operates a national check clearing system to expedite the process. See also: Check hold.
References in periodicals archive ?
Stressing the negative impact on the business sector by government directives suspending work in government offices in instances that do not include regular holidays nor inclement weather, Senate President Aquilino "Koko" Pimentel III on Tuesday called on the Executive Department to exclude the units involved in check clearing of the Bangko Sentral ng Pilipinas (BSP) from work suspension orders to ensure that check clearing operations would remain uninterrupted.
Senate President Aquilino Pimentel III is pushing for the exclusion of Bangko Sentral ng Pilipinas' (BSP) check clearing unit from work suspension orders to ensure uninterrupted operations of vital businesses in the country.
How is the service of international check clearing provided?
The Check Clearing for the 21st Century Act, widely known as Check 21, went into effect in October 2004.
It claims that solution "backbones" ProgressSoft's Electronic Image-based Check Clearing Solution (PS-ECC), which has "successfully electronified" the cheque clearing process across the country since 2007.
The reason: During the days following the terrorist attacks in 2001, check clearing was brought to a halt.
For the first time ever, ProgressSoft demonstrated in such a regional event the pioneering PS-ECC--the world's first Electronic Check Clearing Solution that claimed the attention of the international banking community in most prestigious events and exhibitions, with several successful countrywide implementations notched on its belt.
The Check Clearing for the 21st Century Act, or Check 21, lets banks transmit electronic images of a check rather than wait for the original paper check to make its way through the banking system.
The Federal Reserve Board, on December 22, 2003, approved a proposed rule to amend Regulation CC (Availability of Funds and Collection of Checks) and its commentary to implement the Check Clearing for the 21st Century Act (Check 21 Act).
PCHC is the exclusive check clearing service provider servicing all banks in the Philippines.
The Electronic Check Clearing Law, which was passed by the Knesset in February 2016, enables the transition from physical check clearing to electronic clearing.
The final amendments ensure that Regulation J covers the entire range of check-processing services that the Reserve Banks now offer since the Check Clearing for the 21st Century Act became effective on October 28, 2004.