COMESA Centre, Ben Bella Road,

Lusaka Zambia
+260 211 234 354

+260 211 234 358

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Cheque Truncation Project

What its About

Cheque Truncation is a system of cheque clearing and settlement between banks based on electronic data/images or both without the exchange of physical instruments or paper-based instruments.

In order to secure the system from risks associated with the use of cheques in the CTS environment, ZECHL in conjunction with the banking industry introduced additional security features to be applied to all cheques printed for Zambia (CTS Compliant Cheques).

Watermark:  A semi-transparent image on the cheque that is visible when the cheque is held against a source of light.

Check Digit Value: These are the last two (2) digits on the MICR code line after the space. The CTS compliant cheques are the only cheques accepted for processing on the CTS.

What are the benefits of using CTS compliant cheques?

  • Quicker processing than non-CTS compliant cheques country-wide. Non-CTS compliant cheques will be manually processed and bilaterally cleared between banks;
  • Quicker access to cleared funds than those who deposit non-CTS compliant cheques, as previous clearing periods will apply i.e. between 3 to 10 days depending on the domicile of the cheque and where it is being deposited;
  • Improved velocity of cash flow in the economy owing to reduced clearing periods;
  • Reduced risk associated with the manual handling and physical movement of cheques between banks;
  • Reduced cost of processing interbank clearing cheques, as bank staff no longer have to physically deliver the instruments to the ECH to exchange the cheques.

Efficient, Reliable, Secure & Cost Effective Inter-Banking

Clearing Periods

The Zambian banking industry adopted the T+1 model of clearing cheques. To benefit from the T + 1 clearing period, cheque depositors need to observe the following:

Cheques deposited before 12:00 hours

shall be cleared the same day and value given to the customer the following business day

Cheques deposited after 12:00 hours

shall be cleared the following business day with value given a day later i.e. T+2

To ensure that customers enjoy the full benefits of CTS, they are advised to deposit cheques early in the day.

The Project went live in February 2013 and has been fully operational since then.
Zambia Electronic Clearing House Limited

Electronic Funds Transfer, Cheque Image Clearing, National Financial Switch

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