Announcements & News

His Excellency, The Governor of the Central Bank of Kuwait (CBK), Dr. Mohammad Yousef Al-Hashel stated that in keeping with efforts to develop the business environment for banks, and to facilitate automation of various banking activities - with the ultimate aim of improving banking services provided to the public - the CBK’s Board of Directors has approved an automated cheque clearing system as an alternative to the current procedure of processing cheques manually. His Excellency, The Governor indicated that the CBK has been cooperating closely with local banks for about two years in implementing this system.

The Governor further stated that the new system, entitled the “Kuwait Automated Cheque Clearing System” adopts the very best international practices in terms of providing an automated documentary cycle for the clearing and conversion of original cheques into electronic format so that they can be used in the automated clearing process and at the same time comply with safety and security standards as well as laws and regulations applicable in the State of Kuwait.

The Governor explained that the new system provides many valuable advantages for local banks and their customers including improvement of the operating efficiency of cheque clearing and, in turn, shortening the process for a beneficiary from collecting and depositing a cheque into his/her account from a period that may extend to 4 days (as is currently the case) to only one business day. This, therefore, improves customer service and reduces the systematic risks associated with cheques presented for collection insofar as the new system provides information immediately which can be used to confirm the authenticity and legitimacy of individual cheques. By enhancing the efficiency of the payment system in Kuwait economy the Kuwait Automated Cheque Clearing System contributes towards strengthening the financial stability in the country.

The Governor mentioned that implementation of the new system shall take place on 14 June 2015.

Dr. Al-Hashel expressed his appreciation towards the banks that participated in this achievement and for their continued cooperation with the CBK in implementing the system.

The Governor concluded by emphasizing that the Central Bank of Kuwait is at all times keen to monitor international developments in the banking and financial fields, and that by adopting the best practices the operating efficiency of banks will be enhanced, thus improving the services that banks provide to their customers and to the national economy in general.