Cheque Clearing (CITS)
Bringing Sri Lanka’s national payment infrastructure on par with international players.
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Bringing Sri Lanka’s national payment infrastructure on par with international players.
LankaPay, established two decades ago, has been pivotal in spearheading the Automated Clearing House (ACH) function in Sri Lanka. One of its groundbreaking initiatives, the Image Clearing System (Cheque Imaging and Truncation System-CITS), launched in May 2006, has significantly modernized cheque processing. By facilitating the exchange of digital cheque images among banks, CITS has revolutionized the national retail payment infrastructure, eliminating the cumbersome physical movement of cheques during clearing. This transition to image-based clearing has not only expedited the clearing process to just one working day but has also led to increased operational efficiency and cost savings for banks. Moreover, it has provided businesses with extended timeframes to submit cheques, enhancing overall convenience for banking clients.
For businesses, the implementation of CITS has brought about notable advantages. The online data submission mode allows banks to securely submit cheque images and MICR data through a Virtual Private Network (VPN) with robust encryption, ensuring data integrity and confidentiality. Furthermore, the introduction of standardized cheque templates has helped mitigate fraud risks associated with cheque issuance, offering businesses enhanced security and peace of mind in financial transactions.
Overall, LankaPay's innovative initiatives have not only modernized payment systems but have also empowered businesses with efficient, secure, and standardized cheque processing solutions.
You should
Under the CITS operations, cheques are not physically presented to the drawee bank. Hence, it is not possible to write the cheque return remark on the cheque. If a cheque cannot be paid for whatever reason the paying bank has to select and activate the appropriate cheque return code, and a Cheque Return Notification (CRN) will be provided to the customer.
Cheques typically clear within one business day from the time they reach LankaPay, which performs functions of cheque clearing house.
Yes, but will only be processed on or after the specified date.
Banks may charge fees for clearing cheques, like commission charges and other processing fees. These fees can vary from bank to bank.
It includes elements like the person who wrote it (drawer), the bank it's drawn on (drawee), who it's for (payee), the amount, the date, and the signature.
Yes, in Sri Lanka, cheques written in Sinhala, Tamil, and English languages are considered valid.
If your cheque is lost or stolen, immediately notify your bank that issued it. They can stop payment of the cheque to prevent unauthorized use.
Write the full name of the payee on the 'Pay' line. If the cheque is only for that person, cross out the word 'Bearer' and double cross the top left corner.
Yes, you can request a stop payment if the cheque hasn't been presented for clearing yet.
You may need to make a formal request from your bank.
No, only government departments can draw cheques over Rs.100Mn.
The Payment and Settlement Systems Act. No. 28 of 2005 governs electronic cheque presentment in Sri Lanka.
Yes, there are certain inherent risks associated such as returned cheques, forgery, or lost/stolen cheques.
Unlike cash or electronic payments, a cheque is a written promise to pay from one bank account to another when presented to the bank.
Cheques are typically valid for six months from the date they're issued.
The clearing system uses electronic images, the physical cheque is removed from the clearance process once you hand it over to the presenting bank.
Yes
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LankaPay is the national payment network of Sri Lanka which provides the central payment infrastructure to the country’s financial sector. With a mission to drive financial inclusivity and empower businesses and individuals with faster, convenient and secure payment options, making payment convenience an affordable and accessible choice for all.
Location
LankaPay (Pvt) Ltd. Level 18, Bank of Ceylon Head Office,BOC Square, No. 01, Bank of Ceylon Mw, Colombo, 00100, Sri Lanka.
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