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CH 08 Clearing House System

The document describes the clearing house system between 4 banks - Sonali, Rupali, Janata, and Agrani. Each bank prepares clearing statements showing the credits and debits from transactions with other banks. At the end of the day, a net clearing statement is prepared showing the net balance for each bank after factoring in all interbank transactions. The clearing house, facilitated by the central bank, acts as an intermediary to settle the net credit or debit balances between the banks on a daily basis.

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Moshhiur Rahman
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281 views13 pages

CH 08 Clearing House System

The document describes the clearing house system between 4 banks - Sonali, Rupali, Janata, and Agrani. Each bank prepares clearing statements showing the credits and debits from transactions with other banks. At the end of the day, a net clearing statement is prepared showing the net balance for each bank after factoring in all interbank transactions. The clearing house, facilitated by the central bank, acts as an intermediary to settle the net credit or debit balances between the banks on a daily basis.

Uploaded by

Moshhiur Rahman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

CHAPTER – 7

The Clearing House


System
*Define Clearing House
Definition;
The Place where interbank transaction
settlement performed.
Oxford Dictionary of Business “Clearing house is a
centralized and computerized system for settling
indebtedness between members”
Prof. Sayers said “the interbank indebtedness
arising from the transfer of deposit from one
person to another is made by the bankers clearing
house”
Clearing house is a certain place where central bank acts as
a middleman to setting interbank all kinds of
transactions.
Features of Clearing House
1. Definite room
2. Location
3. Daily activities
4. Particular rules and regulations
5. Influence of central bank
6. Autonomy
7. Settlement of indebtedness
Advantages of Clearing House

[Link] settlement of transaction


[Link] policy
[Link] saving
[Link] of transaction
[Link] on the cash deposit of bank
[Link] in realizing economic condition
[Link] in transfer of money
*Clearing house system

 There are 4 member banks of clearing house. Sonali, Rupali, Agrani and Janata.
Sonali bank ltd.
Credit statement
18/04/2011

Bank and branch name chaeque no. Amount (tk.) total amount

[Link] Rupali bank ltd.


a. Dumki branch M 008462 24812.00
b. Patuakhali branch M 103868 10000.00
34812
[Link] Janata bank ltd. (Barisal) S 468240 15000
3. The Agrani bank ltd. (barisal) C 680682 10000
B 08430 7500.00
17500

Total 67312.00
Net debit and credit statement of banks

Debit amount for each bank


Sonali Rupali Janata Agrani Total

Sonali ------- 34812 15000 17500 67312


Credit
Rupali 20000 -------- 22500 15000 57500
amount

for each Janata 22000 14000 --------- 20000 56000

bank Agrani 20000 8000 15000 --------- 43000

Total 62000 56812 52500 52500 223812


 From the above matrix every bank makes clearing
statement by the following way;
The Sonali bank ltd.
Clearing statement
18/04/2011
Bank’s name Credit Debit Credit Debit Net balance
balance balance
1. Rupali bank ltd. 34812 20000 14812 -------

2. Janata bank ltd. 15000 22000 --------- 7000

3. Agrani bank ltd. 17500 20000 --------- 2500

Total 76312 62000 +14812 - 9500 + 5312


The Rupali bank ltd.
Clearing statament
18/04/2011
Bank’s name Credit Debit Balance Net
Credit Debit balance

1. Sonali bank ltd. 20000 34812 -------- 14812

2. Janata bank ltd. 22500 14000 8500 --------

3. Agrani bank ltd. 15000 8000 7000 ---------

Total 57500 56812 +15500 - 14812 + 688


The Janata bank ltd.
Clearing statament
18/04/2011
Bank’s name Credit Debit Balance Net
Credit Debit balance

1. Sonali bank ltd. 22000 15000 7000 ----------

2. Rupali bank ltd. 14000 22500 ------- 8500

3. Agrani bank ltd. 20000 15000 5000 ---------

Total 56000 52500 +12000 - 8500 + 3500


The Agrani bank ltd.
Clearing statement
18/04/2011
Bank’s name Credit Debit Balance Net
Credit Debit balance

1. Sonali bank ltd. 20000 17500 2500 ----------

2. Rupali bank ltd. 8000 15000 ------- 7000

3. Agrani bank ltd. 15000 20000 -------- 5000

Total 43000 52500 +2500 -12000 - 9500


Net clearing statement
18/04/2011
Bank’s name Credit Debit Balance
Credit Debit
1. Sonali bank ltd. 14812 9500 5312 ---------

2. Rupali bank ltd. 15500 14812 688 ---------

3. Janata bank ltd. 12000 8500 3500 ---------

4. Agrani bank ltd. 2500 12000 -------- 9500

Total 43812 43812 +9500 - 9500


END OF CHAPTER

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