Banking (Clearing House) Regulations - Singapore Statutes Online

Banking Act

(Chapter 19, Sections 59 and 78)

Banking (Clearing House) Regulations

Rg 1

REVISED EDITION 1990

(25th March 1992)

[28th August 1982]

Citation

1. These Regulations may be cited as the Banking (Clearing House) Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“articles” includes —

(a)	cheques, cashiers’ orders, drawing vouchers, dividend warrants, demand drafts, remittance receipts, travellers cheques and gift cheques drawn on a bank in Singapore or the Post Office Savings Bank of Singapore or the Authority and payable in Singapore dollars; and [S 533/91 wef 14/12/1991]
(b)	such other instruments as the Authority may authorise from time to time by way of notification in the Gazette; and
(c)	where the originals thereof have been certified by the presenting bank, the Authority or the Post Office Savings Bank of Singapore as lost, the certified true copies thereof whether in the form of microfilm, photocopy or other means authorised by the Authority;

“clearing” means, in respect of articles presented by a participant to all other participants, through the Automated Clearing House (whether the presentation is made by way of electronic transmission of the data on the articles or by way of physical delivery of the articles to the Automated Cleearing House), the process by which the Automated Clearing House —

(a)

in respect of articles which are delivered to the Automated Clearing House by way of physical delivery for clearing, verifies the correctness of the amount of the participant’s claim (as stated on the pay-in slip which accompanies the articles) against the total value of the articles received by the Automated Clearing House and makes any necessary adjustments so as to tally the two amounts; and

(b)

computes from articles (both articles delivered to the Automated Clearing House by way of electronic transmission of the data on the articles or by way of physical delivery of the articles for clearing) —

(i)	the sum due to the participant from all other participants;
(ii)	the sum payable by the participant to all other participants; [S 533/91 wef 14/12/1991]

“participant” means a bank, the Post Office Savings Bank of Singapore or the Authority which presents articles to the Automated Clearing House for clearing.

[S 533/91 wef 14/12/1991]

Automated Clearing House

3. There shall be established an Automated Clearing House for the clearing and exchanging of articles.

[S 533/91 wef 14/12/1991]

Banking Computer Services Private Limited

4. The Automated Clearing House shall be operated by Banking Computer Services Private Limited.

Banks to open current account

5. Every bank shall open a current account with the Authority.

Procedure at close of each day’s clearing

6.—(1) At the close of each day’s clearing, Banking Computer Services Private Limited shall deliver a statement of transfer setting out the clearing settlements to the Authority which shall effect the clearing settlements by debiting and crediting the banks’ current accounts.

(2) Adjustments of the accounts shall be deemed to occur at one minute before midnight on the day that the articles are received for clearing.

(3) Notwithstanding any errors or omissions in such statement, it shall for the purpose of settling the clearing be final, conclusive and binding on the banks vis-a-vis the Authority.

(4) In settling the clearing the Authority shall take into account any instructions or mandates given by banks.

Funds to meet bank’s obligations

7.—(1) A bank shall ensure that there are sufficient funds in its current account to meet its obligations arising out of each day’s clearing or ensure that another bank (referred to in these Regulations as the settlement agent) shall settle its obligations arising out of each day’s clearing.

(2) A bank shall make arrangements to ensure that, if the funds in its current account are insufficient to meet its obligations arising out of the clearing, the deficit in its current account can be covered.

Defaulting banks

8.—(1) Where a bank fails to make good the deficit in its current account under regulation 7, the Authority may, at its discretion, reverse the entries made in the current account of the defaulting bank in respect of the clearing.

(2) Where a bank has contravened regulation 7 (referred to in these Regulations as the defaulting bank) the Authority may, at its discretion, exercise all or any of the following powers:

(a)	suspend from clearing the defaulting bank and inform the Singapore Clearing House Association that the defaulting bank has been suspended;
(b)	regard the defaulting bank as being unable to meet its obligations under section 49 of the Act;
(c)	suspend from clearing all or any of the banks for which the defaulting bank is the settlement agent (referred to in these Regulations as the principal banks) and inform the Singapore Clearing House Association that the banks have been suspended; and
(d)	regard all or any of the principal banks as being unable to meet their obligations under section 49 of the Act.

(3) Where a defaulting bank has been suspended from clearing by the Authority under this regulation, no bank shall present articles drawn on the bank for clearing.

Return of articles delivered for clearing

9.—(1) Where the Authority reverses the entries of a defaulting bank under regulation 8(1), the defaulting bank and the principal banks, if any, shall return directly to the respective banks and the Post Office Savings Bank of Singapore and the Authority the articles delivered by them for the clearing in respect of which the entries in the current account have been reversed.

(2) All the other banks shall return directly the articles delivered for the same clearing by the defaulting bank and the principal banks and these banks shall accept the articles from such banks and from the Post Office Savings Bank of Singapore and the Authority.

Readmission of suspended bank

10. The Authority may, at its discretion, readmit a bank suspended from participating in the clearing if the bank takes such steps as the Authority may consider necessary to ensure that the bank fulfils its obligations arising out of the clearing.

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