So what’s changing?
Banks and building societies in the UK are changing how sterling cheques drawn on a UK bank are processed. The new process will be known as the Image Clearing System (ICS) – because cheques will be cleared using a digital image rather than through the current paper-based clearing system.
When will the changes be introduced?
The new cheque clearing process will be introduced at the end of October 2017 on a phased basis. It is intended that all sterling cheques drawn on a UK bank will be cleared using the new process by the end of 2018.
How will the changes impact you?
Under the new process, if you pay in a cheque on a week day you will be able to withdraw the funds by 23.59 on the next business day (excluding Bank Holidays) after the cheque is lodged. The introduction of the new process will also mean that, when a cheque is paid in, not only will the recipient receive the money in their account more quickly, but the money will also leave the account of the person or business in the faster timescale too.
Where the new process is not being used cheques will still take up to six business days to clear.
Want to find out more?
If you’d like to understand more about cheque payments and how they may be set to change, you’ll find the Cheque and Credit Clearing Company website useful.