BI extends clearance schedule for Jakarta
BI extends clearance schedule for Jakarta
JAKARTA (JP): Bank Indonesia, the central bank, will begin a new clearing schedule for banks in the city on April 1 to improve clearing efficiency and security.
The changes are stipulated in Bank Indonesia's ruling No. 28/160/KEP/DIR and its circular letter No. 28/169/UPG, both dated March 5.
Under the new schedule, Bank Indonesia, which also acts as a clearing house for local clearing banks, will accept all clearing instruments, such as checks, drafts or other forms of indebtedness, from clearing banks until 4:00 p.m. every clearing day. Currently the deadline is 12:00 a.m.
The central bank will provide information on the clearing results on a given day from 7:00 p.m. to 9:00 p.m. and from 7:00 a.m. to 9:00 a.m. the next day. It will return all clearing instruments to the participating banks between 12:30 p.m and 4:00 p.m. the following day.
The new changes will allow customers to submit their clearing documents to their banks until 3:00 p.m.
"The clearing schedule changes serve as one of the central bank's efforts to improve the efficiency and security of clearing activities," the central bank said in a statement.
With the new clearing schedule, banks will have more time to examine the originality of any clearing instruments they receive and, if necessary, they can countercheck with their customers.
Under the current schedule, banks receive clearing instruments from the central bank at night, and are required to return them to the central bank the same night.
For the inter-bank call-money market, the new schedule states that banks can submit their clearing instruments to the central bank until 10:30 a.m. the day after the banks receive them. The central bank will return the clearing instruments to the participating banks the following day between 12:30 a.m. and 4:00 p.m.
"If banks suffer clearing losses, the new schedule will provide them with ample time to look for the needed funds to meet their financial obligations," the statement said.
The current schedule gives only one hour for banks to look for such funds, from 5:00 p.m. to 6:00 p.m. But the new schedule gives banks 15 and a half hours, from 7:00 p.m. to 10.30 a.m. on the following day, to seek the funds. (rid)