Clearing House Interbank

Payments System 

Presented by

Mallesh
Clearing House Interbank Payments System 
 The Clearing House Interbank Payments System (CHIPS) is the
primary clearing house in the U.S. for large banking transactions.
As of 2015, CHIPS settles over 250,000 of trades per day, valued in
excess of $1.5 trillion in both domestic and cross-border
transactions. CHIPS and the Fedwire funds service used by the
Federal Reserve Bank combine to constitute the primary network in
the U.S. for both domestic and foreign large transactions
denominated in U.S. dollars.
 How The Clearing House Interbank
Payments System Works
There are two steps to processing funds
transfers:
1) clearing 
2) settlement
1) Clearing :-
Clearing is the transfer and confirmation of
information between the payer (sending financial
institution) and payee (receiving financial institution).

2) Settlement :-
Settlement is the actual transfer of funds between
the payer's financial institution and the payee's
financial institution.
Thank You…