CBN Extends Settlement Banking Arrangement to All Clearing Sessions Effective January 1, 2018

Regulators
5300 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Friday, November 10, 2017/ 7:10 PM /CBN 

You will recall that the Central Bank of Nigeria introduced settlement banking framework on 1st April 2004. The framework categorized Deposit Money Banks into settlement and non-settlement banks. The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during sessions 1 and 2. The non-settlement banks enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly. 

The aforementioned framework has been working well and contributed to the relative stability in the net settlement operations for settlement of clearing sessions 1 and 2 on the RTGS System. 

In view of this, it has become Imperative for the bank to extend the settlement banking arrangement to all the clearing sessions, with effect from 1st January, 2018. Specifically, the settlement of net clearing obligations from CSCS, Cheques, Cards, ASH, NIP, NEFT and  other clearing  instruments  shall be through the account of Settlement  Banks only. 

In this regard, Settlement Banks are hereby advised to update the agency agreements with their respective non-settlement banks. Merchant bank that do not have settlements banks should appoint a settlement bank and inform the Director, Banking & Payments System Department, CBN Abuja, on  or before 15 December, 2017, with a copy of the letter from the settlement bank, accepting to settle for them 

Related News
1.       SEC Proposes New Rule on Green Bonds and Sundry Amendments to Its Rules
2.      CBN Non-Oil Export Stimulation Facility (NESF) Guidelines
3.      IOSCO Reports On Implementation of G20 - FSB Recommendations To Strengthen Securities Markets
4.      Notification of Effective Dates of Rules of The NSE - Pricing Methodology and Par Value Rules
5.      FCA Publishes Future Approach To Consumers
6.      IOSCO Publishes Updates To Peer Reviews Of Regulation Of MMFs And Securitization
7.      NSE Issues Notification of Effective Dates of New Rules for Dealing Members
8.     CBN Issues Further Clarification on the Enforcement of GIFMIS Revenue Reference Number
9.      CBN Unveils Framework For BVN, Watch-List Operations
10.  Financial Conduct Authority Outlines Lessons Learned In Year One Of Its Regulatory Sandbox
11.   SEC Approves New NSE Rules and Amendments to Rules on Block Divestment and Large Volume Trades
12.  SEC chief accountant gives remarks on initial coin offerings
13.  Rethinking Financial Stability
14.  Statement on the ISDA Credit Derivatives Determinations Committees
15.   Education and Protection of Investors Brought to the Attention of the Global Public
16.  2017 World Investor Week: SEC Nigeria holds Investors Clinic
17.   SEC Nigeria joins IOSCO, to Celebrate World Investor Week 2017
18.  CBN Faults Report On Deputy Governor
19.  Testimony On Examining US SEC's Agenda, Operation and Budget Before HoR Committee On Financial Servi

READ MORE:
Related News
Proshare
Proshare
Proshare
Proshare
SCROLL TO TOP