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 ?
The Federal Reserve Board on July 26, 2004, released final amendments to Regulation CC and its commentary to implement the Check Clearing for the 21st Century Act (Check 21 Act), which was enacted on October 28, 2003, and becomes effective on October 28, 2004.
2 /PRNewswire/ -- United Check Clearing Corporation recently moved their corporate office into the newly-constructed Plymouth Ponds Business Park.
Looking forward to teller capture next to speed check clearing process
The 24-hour check clearing process, called Liberty Clear, is made possible by a unique transportation and information technology network developed by UPS Worldwide Logistics.
The Singapore, Hong Kong and Mumbai centers will enable financial institutions in Asia and India to streamline their check clearing processes, alleviating worries over weather delays or loss due to customs inspections.
7 million order from the Bank of England for a stand-alone check clearing system.
In today's financial services climate, with check capture quickly becoming decentralized and check clearing becoming electronic, banks are rethinking how they can enable innovation to occur.
Reduce clearing costs by eliminating Federal Reserve and/or correspondent bank check clearing charges without adding transportation expenses.
THE BANK OF SCOTLAND PURCHASES BANCTEC 5500 TPS CHECK CLEARING SYSTEM
The images and MICR data are electronically sent to Middlesex Savings Bank's central operation center throughout the day extending the window for accepting deposits and expediting the check clearing process.
The FCN solution is another check clearing option that affords community banks enhanced operational efficiencies while allowing them to maintain their correspondent settlement relationship with Banker's Bank.
While electronic check clearing has grown markedly this year, challenges for both collecting and paying banks may put a damper on how quickly and deeply check image exchange will be adopted, according to NACHA.