23 November 2017
visit www.avoka.com

UK task force to investigate cheque clearing times

08 November 2005  |  6537 views  |  0 overhead view woman writing cheque

The Office of Fair Trading (OFT) is leading an investigation into cheque clearing times as part of an on-going effort to increase the efficiency of the national payments system.

The payment systems task force, which is chaired by the OFT and includes representatives of banks, business and consumer groups, says the inquiry will determine whether there is significant demand for benefits for consumers and businesses in cutting cheque clearing times. Currently it takes three days for cheque payments to clear.

The task force will assess the costs and benefits of any changes to the current cheque clearing system and the different practices of financial institutions.

In May the panel reached an agreement with UK banks to reduce clearing times on electronic payments made by customers via the Internet or telephone from three days to at least same day or next day clearing depending on the time of day the payment is initiated. The task force gave banks two years to upgrade IT systems.

The OFT says it tackled e-payments first because of rising volumes of transactions. But cheque use in the UK is falling - it currently accounts for just six per cent of retail transactions - so banks are reluctant to invest in speeding up payments.

Research released by the UK's Halifax bank in August this year shows that cheque usage has hit an all-time low and, based on the current rate of decline, personal cheques could be virtually extinct within the next 20 years.

The number of payments made by cheque has dropped to its lowest level for 15 years, falling from a peak of 3.7 billion in 1990 to 2.1 billion in 2004.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cheques to become extinct in 20 years

Cheques to become extinct in 20 years

12 August 2005  |  9303 views  |  0 comments
Banks cut deal with OFT to speed up payments - FT

Banks cut deal with OFT to speed up payments - FT

23 May 2005  |  5518 views  |  0 comments
Banks given two month clearing deadline

Banks given two month clearing deadline

01 March 2005  |  3812 views  |  0 comments
OFT establishes payment systems task force

OFT establishes payment systems task force

17 March 2004  |  10461 views  |  0 comments
OFT calls for action on bank clearing

OFT calls for action on bank clearing

27 February 2004  |  5685 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.atos.netvisit https://www.niceactimize.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
21206 views comments | 33 tweets | 36 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
10342 views comments | 17 tweets | 35 linkedin
Sepa instant payments goes liveSepa instant payments goes live
9854 views comments | 45 tweets | 78 linkedin
ING brings data privacy to blockchain transactionsING brings data privacy to blockchain tran...
8651 views comments | 25 tweets | 35 linkedin
hands typing furiouslyHow Fintech Companies are disrupting the C...
7259 views 0 | 16 tweets | 8 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job