Banks agree on cheque system

Press, Volume CXIV, Issue 33433, 15 January 1974, Page 2

Banks agree on cheque system

CVeu> Zealand Press Association)

WELLINGTON, January 14

The Governor of the Reserve Bank (Mr A. R. Low) said today that broad agreement had now been reached between savings and trading banks on the technicalities of the method by which cheques issued by savings bank customers will be integrated into the trading bank clearing system.

The way is now clear for individual trustee banks to 'make application to the Reserve Bank for approval to [operate personal cheque [accounts. The Trustee Banks’

Association has advised its members of the sort of information the Reserve Bank will require. The Bank will discuss the financial and technical aspects of each application with the trustee bank concerned before making a recommendation to the Minister of Finance (Mr | Rowling). As soon as the first of these applications is processed and the computer reprogramming needed to meet the clearance requirements of individual banks done, it will be possible to indicate when the new facilities will come into effect, said Mr Low.

The Post Office Savings Bank’s approach to the introduction of cheques generally parallels that of the trustee banks.

These negotitions have taken a long time, with some details still to be settled, but the savings banks will be embarking on an operation which is essentially different from the present service which they offer to their customers and which, if not properly thought through, can present some costly pitfalls.

| "The Reserve Bank has

taken the view, and all the parties to the negotiations have accepted this, that it is better to resolve these points of difficulty now rather than try to unscramble the eggs afterwards,” Mr Low said.