DO YOU KNOW – SOME FACTS ABOUT CLEARING HOUSE
1. At present there are 1064 clearing houses in the country and they have been functioning as per the model Uniform Regulations and Rules for Clearing Houses (URRBCH).
2. The URRBCH is not statutory, but the banks within a particular jurisdiction join together to constitute a clearing house and unanimously adopt a resolution to adhere to the URRBCH.
3. Electronic Clearing Service (ECS) is operational at 64 centers is also localized in character and rides on the clearing house infrastructure.
4. All India electronic payment systems are Real-Time Gross Settlement (RTGS) system, National Electronic Funds Transfer (NEFT) System and Negotiated Dealing System (NDS).
5. State Bank of India manages over 650 clearing houses in the country
6. Maharashtra State Cooperative Bank Ltd and Mumbai District Central Cooperative Bank Ltd. Both these cooperative banks are important constituents of Brihanmumbai Bankers' Clearing House servicing nearly 100 urban co-operative banks as their sub-members.
7. At present there are 59 MICR based cheque processing centers in the country in addition to the 1005 non-MICR clearing houses.
8. Of the total cheques processed in the country, over 82% by volume and 88% by value are accounted for by the 59 MICR centers.
9. The URRBCH prescribes that a bank should be licensed for being admitted to the clearing house but the State Cooperative bank would get automatic membership
10. In addition to the license, the member banks should also maintain a settlement account with the concerned settlement bank and be covered by the DICGC.
11. The number of RTGS members at present is only 97 banks and 10 primary dealers.
12. NEFT membership is open only to RTGS member banks.
13. Recently RBI has formed a group to make recommendations to reduce risk and improve country’s clearing house system and group has made following recommendations (Mainly) for licensed banks (Excluding RRBs) which meets following criteria:
(i) CRAR 9%
(ii) Net NPA of less than 10 %
(iii) No default in maintenance of CRR and SLR during the past one year; and
(iv) Net profit in at least one of the preceding two years.
(v) No Bank should be allowed to manage more then 10 sub-members except specially permitted by RBI.
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