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Cheque clearing

Faster processing, and added peace of mind

Whilst electronic banking is making cheques less popular, more than 5 million cheques are still used every day.

The UK banking industry has therefore made changes to the cheque clearing system to make it more understandable and provide greater certainty. These changes went live at the end of November 2007.

The changes

These improvements have introduced maximum time limits for cheque clearing, when interest is paid, and when customers can withdraw money from their accounts.

Certainty of payment - an entirely new feature - has also been introduced. For the first time, customers can be sure that a maximum of seven working days after the date of credit on their statement, the money will be theirs. Customers are protected from any loss if a valid cheque is returned unpaid and money cannot be reclaimed from customers' accounts after the seven days have elapsed.