Bank M adopts new technology to clear cheques in 24hrs

The plan which is part of the bank’s in-house innovation will join other global leading banks to speed up payments.

Jacqueline Woiso, Bank’s Deputy CEO said “This service shall be available for processing outward cheque clearance that is deposited with our bank for payment to our customers’ accounts, drawn from a bank other than Bank M.”

Woiso said the new technology has been integrated with the Bank of Tanzania (BoT) systems to facilitate the quick clearance.

While banks reap millions of extra profit by sitting on customers’ cheques, the new system which is to be freely offered to bank customers will enable them to undertake part of the clearing process online without visiting the banks.

BoT has thus introduced a new payment protocol stopping manually clearance of cheques. The new mode of clearing of local cheques, Tanzania Automated Clearing House seeks to enhance security and efficiency of interbank clearing operations.

John Ngowi, Bank M Product Manager noted that like Cheque Truncation System (CTS) or Image-based Clearing System (ICS) the Money Moja kwa Moja system is a secure, web-based system which allows scanning of cheques through a dedicated scanner and then uploading the scanned images for clearance.

We made a pilot trial for about a month ago, he said the system is very secure and helps accountants for various firms to perform the truncation.