Singapore Automated Clearing House
The Singapore Dollar Cheque Clearing System (“SGDCCS”), US Dollar Cheque Clearing System (“USDCCS”) and Interbank GIRO System (“IBG”), collectively called the SACH systems, are provided by the Singapore Automated Clearing House (“SACH”). These systems are operated by the Banking Computer Services Pte Ltd (“BCS”).
The SACH systems process mainly interbank retail payments. These retail transactions form a large volume of important business and retail transactions such as salary and bill payments. Obligations from financial transactions such as those arising from stock trading may also be settled through SACH systems. SACH clears transactions on a multilateral deferred net settlement basis. Actual funds settlement for IBG and SGD cheques take place in MEPS+ while for USD cheques, settlement occur in the Cheque Settlement System operated by Citibank N.A., the appointed settlement bank for USDCCS. These systems are designated under the Payment and Settlement Systems (Finality and Netting) Act to provide for the enforceability of netting arrangements under certain scenarios and to give certainty to the default arrangements of these systems in the event of the insolvency of a participant.