January 17, 2013
CPA seeking feedback for image rule project – phase IV consultation
OTTAWA -- In Canada, after a cheque is deposited, it must be presented to the financial institution on which the cheque is drawn (the drawee), or its agent, so that the drawee can decide whether to honour the item. Depending on the physical distance between the two financial institutions, presentment can take several days. The time that it takes for a cheque to be presented, potentially dishonoured and subsequently returned, means that a depositor may not be aware that a payment has been refused for several days following the initial cheque deposit.
The CPA’s multi-phased Image Rule project aims to create efficiencies in the clearing process for paper payments such as cheques through the increased use of image technology in the clearing system by amending Rule A10 and Standard 012.
What’s been done so far:
Phase I - June 1, 2010: established requirements and technical standards related to image creation and storage.
Phase II - June 1, 2011: established an enabling framework for the optional creation and use of Return Replacement Documents (RRDs).
Phase III - October 1, 2012: established an enabling framework for the optional creation and use of Clearing Replacement Documents (CRDs), instead of the original paper cheque.
In Phase IV, the final phase of the project, the CPA will propose amendments to create an enabling framework of rules and standards to allow members to exchange items electronically with other Direct Clearers supported by CPA Rules and Standards.
The CPA has launched a 60-day consultation period with CPA members, stakeholders and the public on the proposed amendments to Rule A10 from January 16, to March 16, 2013.
To learn more
The following documents on Image Rule Phase IV are available for review and feedback:
Image Rule Phase IV consultation document
Rule A10: Image Rule - updated
Standard 012: Image Security Standard – updated
Questions and Answers
Questions and Answers for Financial Institution
Questions and Answers for Stakeholder and Consumer
Have your say
Given that any impacts of this proposal will largely be borne by CPA member financial institutions, portions of this document are highly technical and operational in nature. However, the CPA invites all interested parties to comment on this proposed framework and/or the consultation questions contained within this consultation paper by sending written comments to email@example.com by March 16, 2013.