Clearing in the Central Bank of Kuwait
Is a Process that cheques are exchanged between the participating banks in the CBK clearing room, whereby banks representatives submit all cheques deposited by its clients that are drawn on other banks in sealed envelopes. These cheques are arranged and sorted by bank, and supported by hard copy lists to illustrate both deposited and withdrawn cheques. CBK, in return, process the total amounts in provided lists into the clearing system and implement the clearing process; this process is called "Clearing Operation" which means exchanging cheques. Every bank is provided with a printed report that allows the bank to identify its financial status as a result of settling the total value of the collected cheques, drawn from his accounts or deposited by its clients, and the net balance whether credit or debt. CBK also includes the MICR system in posting the received cheques from banks through the Clearing System to facilitate accuracy and quickness in processing cheques and also as a step forward to applying the Automated Cheques Clearing Project.