Annual Report of the Activities of the Clearing House Committee, 2017

09/09/2019 |  Bank of Israel
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preface

The Banks’ Clearing House Committee have worked hard in recent years to promote the reform of the Paper-based Clearing House, designed to transform it into an electronic, faster, and lower-risk clearing house. In 2017, we completed two very significant stages—full implementation of the Electronic Check Clearing Law, 5776-2016, and the cancellation of the manual clearing session—with the shift of the activities cleared through it to electronic clearing. These are major changes, from the technological as well as the business perspectives, which reduce the risks in the clearing house system and increase the efficiency of the clearing processes for bank customers and for the overall banking system.

In May of this year, the shift of manual clearing to electronic clearing was completed, and the manual clearing session was cancelled, a process that led to the reduction of risk in the Paper-based Clearing House and to an increase in the clearing house’s operating processes.

In November of this year, the full implementation of the Electronic Check Clearing Law was completed, a revolution in the check clearing process in Israel. Many resources were invested in this project, by all the Clearing House members. The process began in 2015 with the drafting of an Electronic Check Clearing Bill. The Law was passed in February 2016, and mobile clearing was implemented in November 2016. The law was amended in the beginning of November 2017, and was imposed on all checks in Israel on November 21, 2017.

I am proud to have taken part in these processes, which are possible due to the collaboration, the uncompromising professionalism, and the considerable investment by all involved. Profound thanks are extended to the members of the Banks’ Clearing House Committee, the Secretary of the Committee, and to the related working groups—the Legislation Committee, the Communications Interface Committee, the Application Committee, the Rules Committee, the Returned-check Reasons Committee, the Execution Office Interface Committee, and the International Clearing Relations Committee—with participants that are Committee members, representatives of the Bank of Israel, and representatives from the Ministry of Justice, Israel Police, and the Enforcement and Collection Authority, for professional, serious, and dedicated leadership of the Paper-based Clearing House reform.

In the coming year, we expect to face additional challenges to completing the reform in the Paper-based Clearing House—the implementation of the Cash Law, the truncation of payment vouchers and of manual materials. This is in addition to the various issues that that the Banks’ Clearing House Committee deals with routinely.

The 2017 Annual Report of the Banks’ Clearing House Committee is presented herewith to the Banks’ Clearing House Committee members in accordance with Part A, Chapter 101, Section E of the Clearing House Rules.

With thanks and appreciation,

Ronit Chitayate

Banks' Clearing House Committee Chairperson​