Main purpose of introducing the US Dollar Clearing System was to expedite realization and eliminate delays to obtain credit by the depositors.
Traditionally a US Dollar cheque/draft needed to be couriered abroad and the value credited to the Bank which required more than 3 weeks. Under the revised arrangement, depositors are able to obtain funds as early as the fourth working day, reducing the delay significantly. In both instances, it is the payee in Sri Lanka who benefits through the new US Dollar Cheque Clearing that was introduced.
The instruments covered include:
What does it mean by an outward item?
Outward shall mean any item presented by originating Banks to LankaClear.
What does it mean by an inward item?
Inward shall mean item received by receiving Banks from LankaClear.
What does it mean by value date?
Value date shall mean the date the beneficiary shall be entitled to receive the monetary value.
What is settlement bank?
Settlement Bank carry out the settlement of accounts subject to the availability of funds by debiting or crediting of participant banks’ accounts according to the Net settlement figures provided by LankaClear in respect of each participating bank, on the value dates specified by LankaClear.
What is a NOSTRO account?
NOSTRO account shall mean a bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts are used to facilitate settlement of foreign exchange and trade transactions.
What are the value date limitations of US Dollar Online Clearing Systems?
Same day clearing only in session 2 and any session accept T+1 to T+2 value dated transactions.
US Dollar Online Clearing Quarterly Statistics