Tech Glitch

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

May 23 (LBO) – Local commercial banks with a backlog of un-cleared cheques say the operational glitch will be sorted out by the end of this week.

LankaClear, the country’s cheque clearing house jointly owned by the Central Bank and licensed commercial banks, rolled out its new cheque imaging and truncation system earlier this month.

A post implementation review by the Central Bank showed some banks collecting a backlog of cheques due to operational problems with the new system.

A few banks have experienced temporary operational problems in adjusting to the new system. This has led to certain delays in cheque clearing in the case of a few banks, the Central Bank said in a statement on Tuesday.

However, all these banks have assured that they would adhere to the new operational system by May 26, 2006.

The new system limits the physical cheque flow up to only the collecting bank and from there onwards introduces electronic information throughout the entire clearing cycle.

When deposited, the cheque is scanned and its electronic image, instead of the physical cheque, is transmitted from the collecting ba

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