Singapore legislation
Clause 16
Clause 16
Clearing Houses and settlement of balances between banks
(1)
In order to facilitate the clearing of cheques and other credit instruments for banks carrying on business in Singapore the Minister shall, at an appropriate time and in conjunction with banks operating in Singapore, establish a Clearing House.
(2)
The Minister may by order require each bank to open either immediately or over a specified period of time a clearing account with the Clearing House of an amount which the Minister may from time to time determine.
(3)
A bank shall settle, by means of cheques drawn on and paid into its account with the Clearing House, all the balances between itself and any other bank arising out of the general clearances effected in Singapore and such other places as the Minister specifies.