All Clearinghouse (NIFT) Members

Dear Madam/Sir,

Launch of the Pakistan Express Clearing System (PECS)

In order to strengthen digital payments ecosystem of Pakistan and enhance the efficiency of the existing cheque clearing and settlements mechanism, it has been decided to introduce Pakistan Express Clearing System (PECS). The new system will be based on the concept of cheque truncation as defined in Section 2(zl) of the Payment Systems and Electronic Fund Transfers (PS&EFT) Act 2007, under which cheques will be cleared on the basis of images captured, instead of physical instruments. Images will be captured by the Presenting/Collecting bank and will be transmitted to Clearing House (NIFT) for onward transmission to Paying/Drawing bank for processing the cheque/instrument.

2. The implementation of PECS shall start from October 15, 2026, initially on pilot basis, and will be completed by April 30, 2027 with nationwide coverage, as per the implementation plan attached at Annexure-A.
   
3. Further, the Rules and Procedures & Operational Instructions for implementation of the PECS are enclosed at Annexure-B & Annexure-C respectively.
4. All Financial Institutions (FIs) are required to take adequate measures to create awareness among the public through print, electronic and social media about PECS. Further, the relevant staff shall be trained on the overall process of Truncation.
5. While operating under this System, FIs shall ensure compliance with all relevant laws and regulations issued from time to time, including but not limited to the Payment Systems and Electronic Fund Transfers Act, 2007 and the Negotiable Instruments Act, 1881.
6. Please acknowledge receipt.