Types of Bank Clearance
The use of cheques between banks gives rise to a clearing house or bank clearance, of three types:
- Cheque clearing: cheques drawn on one bank are paid into an account at another bank.
- Credit clearing: clearing non-cheque transactions, such as standing orders, credit transfers, and direct debits.
- Cash dispenser (ATM): an electro-mechanical device at the bank allowing customers to withdraw cash quickly using a card.
Traveller’s Cheques
To obtain a traveller’s cheque:
- Contact the exchange control department of the central bank.
- Complete an exchange control form stating the amount of money required.
- Show proof of travel by presenting your visa to the exchange control department.
- If approved, take the form to a commercial bank, which issues the traveller’s cheque in exchange for cash paid to the bank.
- Sign a form before the cheques are issued, which serves as a receipt.
