The Zambia National Commercial Bank (ZANACO) has admitted facing some operational challenges in effectively handling the newly introduced cheque truncation system.
ZANACO Managing Director and Chief Executive Officer Martyn Schouten states that the operational challenges were expected because the transition was effected with a short period of time and was not 100 percent tested by all parties involved.
Earlier this year, the Bank of Zambia announced the introduction of the cheque truncation system which was effective from 1st February, 2013 allowing cheques to be cleared within 24 hours.
The cheque truncation system is an efficient method of clearing cheques which involves the clearing of cheques through the transmission of images between banks as opposed to sending physical cheques for clearing purposes.
Some members of public have raised concerns over the long period of time the clearance of cheques is taking despite the reduction of the standardized time for the clearing period from the current 3-10 days to one clearing day countrywide.
Mr. Schouten was however quick to mention that his bank is in constant talks with the central bank and other financial institution’s to ensure that there is an improvement.
In an interview with QFM, Mr. Schouten states that there is tremendous progress that is being made by the bank and has since assured that the system will be in a perfect condition in the next few months.