Effect Of Automated Clearing System On Bank Performance In Banking

Effect Of Automated Clearing System On Bank Performance In Banking

Abstract

To start with, the thing of every operation staff is to deliver quality service and in the process excite the client.

Through information given it’s egregious that automated clearing system in Nigeria has bettered payment service. The purpose of clearing banks to make the process more manageable. system used in this design work has been arranged and design in a meaningful way so that it’ll be egregious to anybody that come across this design.

The effect of automated clearing system has been stated in a clear times like strong of data and vital information. It also promoted effective control through shadowing and coordinating particulars and also the benefit of the system has also been stated in a event between automated clearing system and special clearing system so as chalet more light on the motifs for proper understanding.

Chapter One

General Description Of The Study

Preface

The cheque clearing system is the means whereby bank exchange cheque drawn each others through clearing system. Clearing system on the other hand is the medium through which proceeds of cheques and other payment instrument are transferred from the paying bank to collecting bank.

The Nigerian automated clearing system( NACS) which book- off on October 21, 2002 as a result of the time function that affects clearing systemi.e before cheque is cleared. It involved important stretch in which cheque isn’t cleared at when demanded.

The Central bank of Nigeria( CBN) act No 24 of 1991 empowers the apex bank to easing the clearing of cheque and other payment instruments. As a movement forward on the prosecution of the accreditation( CBN) issued the Nigeria banker’s clearing house rule on January 2, 1995. In November 1995( CBN) governor blazoned a plan for a dratie overall of the clearing system financial sale in Nigeria were largely grounded on cash and as similar had essential problems, similar as security volume of paper its transport, currency sorting changing.

This state of affair creates the moving member of the public to non – cash payment instruments was hampered by the clearing processes, which was largely homemade, the services to the client was previous and cheque grounded on sale were use prone to fraud “ the clearing circle look between 5 to 15 working days ”.

The clearing process was veritably rumbustious with too numerous banks sharing on clearing. The process was constantly late in balancing the book and prone to mortal awor.

This made it veritably delicate for central bank of Nigeria( CBN) to calculate and advise on the net agreement numbers on time after the days clearing. Although numerous of the instrument had glamorous character recognition( MICR) decode them the lack of automated meant that MIC law lines and structure would not be used.

This meant a waste of consideration investment made in the form of glamorous link character recognition( MIRC) law line information processing structure to fund result to the problems a commission was set- up its report formed the base of the banker’s commission decision on June 16, 1996 which approved the automated of the clearing process to further zone within the country with Lagos having further zones ” reduce the number of clearing days to joker consumer confidence and encourage. The uses of non cash instrument also reduce number of clearing bank to make the process number of clearing bank to make the process more manageable, briskly it was reasoned that automated would make used of( MICR) technology possible, which would further bring speed and effectiveness into clearing processing with the eventuality to reduce the clearing pier that introduce networking between the parties involved in clearing these was anticipated in unlock the benefit of electronic banking for Nigerians.

Purpose Of The Study

This design particularly is the following purpose irrespective of the factual study accepted.

* To produce the number of clearing banks

* To make process more manageable briskly effective.

* To cut the number of clearing day to boiter, so that consumer will have the confidence and encourage of the uses of non-instrument.

* It’s designed to exclude these individualities difficulties and encourage development and integration of other electronic payment and agreement product.

* To achieve effective control, through tracking coordinating physical item or conditioning database alone enquirese.t.c.

* It enable the exchange of data and information between fiscal institution that whether to had no direct essay to one another clearing system have tolerance security point that can minimize it has help to stabilize banking system and align cheque processing in Nigeria with the transnational standard.

Statement Of The Problem

The problem of this study is to fund out empirical analysis principally on applied exploration end of working an immediate practical problem similar as exploration question like

* Nigeria automated clearing system protects can ameliorate payment system.

* Is it similar with foreign country?

* Does it have effect on value of plutocrat and time pause.

* How numerous banks will be a party, these statements of the problem of this particular design?

Significance Of The Study

This study has important value to the academic it helps the pupil of Banking and Finance, Business Administration, Marketing, and Economics in our colorful institutions to have knowledge about the automated clearing system as part of their course or study when they get to the field so that it would not be strangled to them.

Community- It helps people in community especially those who enjoy banking services by furnishing quick and briskly service for them for case when a cross cheque is drawn to any bank, the client of collecting bank enjoy quick and briskly payment.

Society­- The preface of( ACS) growth and frugality development in which society are the devisee.

Delimitation Of The Study

The study is limited to some banks similar as Community.e.t.c. the study “ Universal Trust Bank Plc ” is one of the party which concentrate on

Introduction Programme From New Executive Assistant

Universal Trust Bank Plc

Clearing within flexible terrain to suitable suggestion

Limitation Of The Study

To carry out this design isn’t an easy task due to circumstances that warrant it similar as;

Time Factor- time factor is the major factor that hamper the disquisition to be carried out is due to the academic situation because diurnal academic period involved information to complete the design.

Factor

Capital constraint which make it delicate to buy the material and collection of applicable data for the design.