Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

A new system is being introduced in October this year which will reduce the time it takes for a cheque to clear from six weekdays to the next weekday.

The Check and Credit Clearing Company (C&CCC) - the organisation that manages the cheque clearing system, has announced details of the launch of an industry-wide image-based cheque clearing system that will speed up cheque processing significantly for customers across the UK. The new system will go live with some banks and building societies from 30 October 2017. Then, at some stage in the second half of 2018, all of the UK’s banks and building societies will clear all cheques via the image-based system to the faster timescale. Over time, increasing numbers of cheques will be cleared using the new system and more and more customers will benefit from the faster timescale, until such time in the second half of next year when all cheques will clear more quickly. The precise date as to when this will happen will be announced by the industry in due course. Banks and building societies will also advise their customers at the appropriate time regarding their individual roll-out plans. For customers, the new system will mean that if they pay in a cheque on a weekday they will be able to withdraw the funds by 23.59 on the next weekday (excluding bank holidays) at the latest, with many banks and building societies likely to allow customers to access their funds earlier than this. Introduction of the new process will also mean that when a cheque is paid in, not only will the recipient receive the money in their account more quickly; the money will leave the account of the person or business that wrote the cheque to the faster timescale too. Customers will still write cheques as they do today, and give or post them to recipients in exactly the same way as they always have. Cheque recipients will still be able to pay in cheques in the normal variety of ways, such as at a bank or building society, by post or at an ATM. This continuation of regular customer practice is particularly important for charities, which receive many donations via this payment method; and for any other people that may prefer to carry on using cheques in exactly the same way as they always have. However, cheque imaging is also about providing more choice, and it means that some banks and building societies may offer their customers the additional option of paying-in an image of the cheque - by using a secure mobile banking app on their smartphone or tablet - rather than having to go to a bank to pay it in. Although this is likely to be a more convenient method for some, customers will still have the option of paying in cheques in exactly the same way as they do today, so there is absolutely no requirement for customers to use a smartphone or tablet to pay-in a cheque if they don’t want to.

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New highly secure £1 coin enters circulation today 28 March 2017

Today the thinner, lighter and larger new £1 coin comes into circulation. We have until 15 October 2017 to use or return all old £1 coins.

A reminder of a news item we posted on 22 February 2017:

On 28 March 2017 the new 12-sided pound coin enters circulation. This is the first time the £1 coin has been changed in over 30 years and is reported to be the most secure coin in the world. It boasts several new security features, including a hologram-like image that changes from a ‘£’ symbol to the number ‘1’ when the coin is seen from different angles. It also has micro-lettering and milled edges, to prevent counterfeits, which cost taxpayers and businesses millions every year. Businesses Businesses of all sizes are being encouraged to visit the New Pound Coin website to find out how to get ready for the change, and to download helpful materials to help educate and train staff.

All cash handling businesses should take the following steps before March 2017:

 check whether they operate equipment that handles the £1 coin  contact their equipment supplier to find out if they need to make any adaptations or upgrades  make the necessary changes to their coin handling equipment  train their staff on the features of the new £1 coin  make arrangements with their bank or cash in transit provider to return the current £1 coin and new £1 coin in separate packaging.


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