Bank of Zambia implements CTS, an efficient method of clearing cheques


The Bank of Zambia has implemented the Cheque Truncation System (CTS).

The CTS is an efficient method of clearing cheques which involve the clearing of cheques through the transmission of images between banks as opposed to sending physical cheques for clearing.

Under the CTS, customers have been advised to observe the required procedure, such as using black ink when writing on the cheques as this will help with the visibility of cheque images.

The Bank of Zambia further advises customers to ensure that accounts are sufficiently funded before issuing any cheque.

According to a press statement issued by the Bank of Zambia, customers have been cautioned not to write anything in the MICR code line space or mask/cover any part of the cheque with masking cello tape as this may obscure essential details of the cheque resulting in a delay to process the cheque.

The Bank of Zambia maintained that the implementation of the CTS will reduce the standardized period of clearing from the current 3-10 days to one clearing day country wide.

Commercial banks have since been directed to disseminate the implementation of the CTS and other relevant information to their respective clients.

The Bank of Zambia reminded commercial banks that any bank that fails to issue CTS compliant cheques to customers after the change-over date should provide alternative payment arrangements for their customers at no cost charged to the customers.

This will include manager’s cheques and any other electronic payment system.