Proposals to reduce clearing times for electronic banking payments have been welcomed by the OFT.
APACS has told the Payments System Task Force, chaired by the OFT, that the new system will mean customers can make payments by the phone or internet and the money will be transferred within hours, on any day of the week, rather than the current three working day system. Under the new system clearing times for standing orders are also reduced from three days to same day.
In May this year an industry implementation group made a commitment to reduce electronic clearing times to the Task Force and was given six months to produce proposals.
John Fingleton, OFT Chief Executive, said, “This is really good news for both personal and business bank customers. The banking industry has met all the criteria set for it. I am particularly pleased that the near real time service, available 24/7, to be introduced by the end of 2007, goes even further than the Task Force recommended. This shows just how well this sort of collaborative approach between industry, consumer and business bodies and Government can work. I am very pleased to welcome these developments.”