SBP Plans Nationwide Rollout of New Cheque Clearing System by April 2027

ISLAMABAD: The State Bank of Pakistan (SBP) is introducing the Pakistan Express Clearing System (PECS) to make cheque clearing faster and more efficient. The new system will reduce the need to physically transfer cheques between banks and improve the country’s payment system.

The pilot phase is scheduled to begin on October 15, 2026, while nationwide implementation is targeted for April 30, 2027.

Under the new system, banks will use electronic images of cheques instead of physically sending original cheques to other banks. This process, known as cheque truncation, is expected to make cheque processing easier and more efficient.

The bank receiving a cheque will capture its image and send it to the clearing house operated by National Institutional Facilitation Technologies Limited (NIFT). The clearing house will then forward the image and relevant information to the bank responsible for making the payment.

System to Be Introduced in Three Phases

According to the SBP, the system will be introduced in three phases.

The first phase will run from October 15 to November 15, 2026, at selected participating institutions. During this period, the institutions and clearing house will review the system, address operational issues and submit a readiness report to the central bank.

The second phase will run from November 16 to December 31, 2026, when the system will be extended to the remaining participating institutions. Banks will gradually expand cheque-image processing across their branches.

The final phase is expected to be completed by April 30, 2027, when all participating institutions will be required to have the necessary infrastructure in place for nationwide implementation.

Additional Daily Clearing Cycle

During the rollout period from October 15 to December 31, 2026, an additional daily PECS clearing cycle will be introduced. Under the announced plan, the clearing house will submit this cycle to the SBP by 3pm.

Banks Directed to Prepare

The SBP has directed participating banks and financial institutions to train their staff in the new cheque-processing system and inform the public through print, electronic and social media.

Banks will also have to appoint focal persons to oversee implementation and regularly report progress to the central bank. They must follow applicable laws, clearing timelines, customer service standards and settlement requirements.

What Will Change for Customers?

Under the new system, cheque images and electronic information will be used for processing instead of physically transferring cheques between banks.

The change aims to improve efficiency and simplify interbank cheque clearing. However, the system will be introduced gradually, so all bank branches will not begin using it at the same time.

Customers are advised to check with their banks for details about local implementation, required procedures and cheque-clearing timelines.

The nationwide implementation deadline is April 30, 2027, but this does not guarantee instant clearance of every cheque.