News & Events
1. Who regulates NCHL-ECC?

NCHL is regulated by Nepal Rastra Bank.

2. What is cheque truncation system in the context of electronic cheque clearing?

In a cheque truncation system, physical movement of a cheque is truncated or stopped at some point in the clearing cycle, either at the level of the presenting bank or at the clearing house or at the paying bank.


In the context of NCHL-ECC System implemented in Nepal, cheque is truncated at the level of the presenting bank. In order words, the cheque does not physically travel to the clearing house or to the paying branch as it used to do in manual clearing process.

3. How does clearing take place and the cheques passed on?

The presenting bank sends an electronic image of the cheque along with the relevant information like the MICR code line data, date of presentation, presenting bank, etc., to the clearing house. The clearing house forwards the images along with data files to the drawee/ paying bank. The paying bank branch takes the ‘Pay’ or ‘No-Pay’ decision based on the image of the cheque.


Physical cheques are truncated at the presenting bank (Bank of First Deposit) and so there is no need to move the instruments physically across branches.

4. How are the images captured?

The electronic images and MICR data of cheques are captured using cheque scanners by the presenting bank. Prior to scanning by the presenting bank, all cheques are required to be stamped at the back (right hand side) of the cheque with the details of Presenting Bank Name, Branch Name and Date of Presentment. Each cheque is allowed to be presented twice in case of rejection in the first presentment.

5. How does the system ensure that cheque images are transferred securely between the banks and NCHL?

Cheque images are transferred securely between the banks and NCHL through highly secured and state-of-the-art technology infrastructure which ensures authentication and security of the images being transferred. Audit logs at all levels are maintained for future references.

6. What care and precautions are to be taken by banks and their customers to ensure quality images and to avoid frauds?

All cheques need to be image friendly. The customers should preferably use dark colored ink while drawing the instruments. Care should be exercised in the use of rubber stamps, so that it would not interfere with the material portions of the cheque. The date of the cheque, payee’s name, amount, signature and MICR line data are the basic features which are essential in a cheque. The use of rubber stamps, etc., should not overshadow the clear appearance of these basic features in the image. In order to ensure that all essential elements of a cheque are captured in the image during the scanning process, bank customers also need to exercise appropriate care in this regard.

7. How long does it take for a cheque to clear through NCHL-ECC System?

All cheques are be cleared and settled on the same day (T+0) provided they are presented before the cut off time. Cheque presented after the cut off time are cleared and settled the following day (T+1).

8. What are the benefits of NCHL-ECC System to the customers of the banks/ FIs?

a.    Faster clearing cycle.

b.    Beneficiary’s account gets credited the same day on which the paying account gets debited.

c.    Better customer service – Elongated customer window.

d.   Elimination of float available to cheque issuing bank customers, as they would tend to lose the advantage of utilizing the funds in their account even after issue of cheque till it reaches the counters of the paying bank branch.

e.     Clearing service by NCHL can be extended to the entire country with no geographical dependency.

9. Are there any changes in the process of cheque clearing for the customers?

No, there is no change for the customers in the way they deposit the cheques and it is processed. But customers need to be aware of the new changes in the cheque standards & its security features, deposit & settlement times and charges that may be applicable.


10. Does the customer need to change the way I complete a cheque?

There are no material changes as such but customers need to be aware regarding use of new design cheque:

i.      Make sure that you write the name of the payee and amount in words, clearly and correctly. Always fill out your new cheques using an ink pen or a ballpoint pen with black or dark blue permanent ink. Do not use a pencil, light coloured or fluorescent or non permanent ink to complete the cheque;

ii.     Write the date inside the “Date” box clearly in dark permanent ink.

iii.    Write or enter the amount inside the “Amount in Figures” box. Write the amount in figures as close to the left side of the box as possible to avoid any fraudulent alteration of the amount in figures;

iv.    If you print the amount in figures using a typewriter or a computer, print the currency symbol together with the amount in figures by the same device. If you use a computer to enter information on the cheque, please use a well maintained printer with permanent dark ink (black or dark blue) ribbons. If you use an ink jet printer or a laser printer, do not let the ink to penetrate the cheque paper and the printer, as it can adversely affect the security features;

v.     Do not write or sign on the space allocated for the MICR code line to ensure accurate reading of MICR printing. There should be no stamping (including company rubber stamp), perforations, stapling or any other intrusion in this area. Do not let your signature overlap the MICR Code line or the “Amount in Figures” box;

vi.    If you use a typewriter to write your instructions on the cheque, use ribbons of dark colours (black or dark blue). Do not use total transfer (correctable) ribbons.

vii.   Do not circle or underline any information on the cheque;

viii.  Do not use carbon or carbon-back ink for transfer to the second copy of the cheque.

ix.    Do not use facsimile signature, as it has a potential to disappear in the image of the cheque.

x.     Do not fold or mutilate the cheque as it can damage the data on the MICR line. Envelopes used for mailing cheques should be sufficiently large to enclose the cheque without folding.

11. What is the difference between Regular Session and Express Session?

Express Sessions are special sessions of short duration for presentment, response from paying bank and NRB settlement. Express session has 1 hour of window for the cheque presentment and settlement happens within next 1 hour. There are currently 3 express clearing sessions on each working day except Friday where there is two express clearing session.


Regular Session is a one full day clearing cycle where cheques presented till 2:00 PM are settled on the same day at 3:30 PM. Cheques presented after 2:00 PM are settled on the next working day (Except Friday*) at 3:30 PM.


*Cheque presented after 2:00 PM on Thursday will be settled on the first working day of the following week at 3:30 PM.

12. What are the clearing session timings?

Presentment for regular session (clearing of MICR encoded standard cheques) starts from 14:00 (T-1) and ends at 14:00 (T+0); Respond by paying bank ends at 15:00 (T+0); and settlement at NRB ends at 15:30 (T+0). Presentment for Express Session as given below:

1st Express Session: Presentment starts from 10:00 (T+0) and ends at 11:00(T+0); Respond by paying bank ends at 11:30 (T+0); and settlement at NRB ends at 12:00 (T+0).

2nd Express Session: Presentment starts from 11:00 (T+0) and ends at 12:00(T+0); Respond by paying bank ends at 12:30 (T+0); and settlement at NRB ends at 13:00 (T+0).

3rd Express Session: Presentment starts from 12:00 (T+0) and ends at 13:00(T+0); Respond by paying bank ends at 13:30 (T+0); and settlement at NRB ends at 14:00 (T+0).

Customers are required to consult their bank as they may set their own cut-off times for their operational arrangements.

13. Are the current cheques already issued by the Banks/FIs to the customers are supported by NCHL-ECC System?

Only the MICR encoded cheques issued by the Banks/FIs will be supported by NCHL-ECC system. Old cheques (without MICR encoding) will not be supported by NCHL-ECC system. Request your bank for issuing MICR cheque in case you are still in possession of old non-MICR encoded cheques.

14. What is High Value Clearing Session?

High value electronic cheque clearing is a special clearing session for presentment of high value cheques of above 200 Million to 300 Million in case of NPR cheques and above 2 Million to 3 Million in case of USD, GBP and EUR cheques. It is available from Sunday to Friday.

15. Whom should I contact for further information?

Contact your bank for further information or visit our website