THE DAR ES SALAAM ELECTRONIC CLEARING HOUSE (DECH)

1. INTRODUCTION

Dar es Salaam Electronic House (DECH) was introduced in the year 2002 to handle cheque clearing for member banks.

The process of clearing payment instruments is one of the requirements of a well functioning banking system. It involves the collection and crediting or debiting of proceeds or claims to customers’ accounts. The instruments received for collection could be drawn on banks’ own branches or on branches of other banks. However, the procedures for clearance of payment instruments vary depending on the source on which the instruments have been drawn on.

For instance, when the instrument is drawn on account maintained at another branch of the same bank, it has to be sent to the paying branch for payment, and an adjustment of funds takes place through inter-branch accounts.

If the instrument is drawn on another bank’s branch, then clearance has to take place through a Clearing House. The Clearing House is a place where representatives of member banks meet at specified times, to exchange instruments and determine the net balances against each other.

2. LOCATION

The DECH is temporarily accommodated on the 1st floor of the Bank of Tanzania main building along 10 Mirambo Street awaiting take over by members through the Tanzania Bankers Association. Other Clearing centers are available at Bank of Tanzania branches namely Arusha, Mwanza, Zanzibar and Mbeya.

3. MEMBERSHIP

Membership is open to any licensed bank to operate in Tanzania, which in the opinion of members is eligible for membership and agrees to the regulations and rules governing the operations of the Clearing House.

A licensed commercial bank that wishes to join the DECH has to submit a dully-filled in application form “Form 100” to the Chairman of Committee of Management.

Form 100 can be obtained from Banking Department or down loaded from the Banks web page: http://www.bot-tz.org/banking.htm OR http://www.bot-tz.org/PaymentSystem

During the period between 1995 – July 2006 DECH expanded its membership from 5 to 23, namely:

4. CONDUCT OF BUSINESS IN THE DECH

4.1. Submission of clearing instruments and files

Procedures involved in the submission of clearing instruments and files through the DECH are governed by rules and regulations of EFT and DECH.

4.2. Clearing Times

There are two sessions on every business day from Monday to Friday.

The first session commences from 9.00 a.m. to 10.30 a.m. whereby provisional settlement positions are determined.

The second session commences from 1.00 p.m. to 2.00 p.m. whereby final settlement positions are determined.

5. ADMINISTRATIVE BODY/STRUCTURE

5.1. Administration

The Committee of Management, Technical Committee and Displinary Committee administer the operations of DECH.

5.2. Supervision of DECH

The day to day business of DECH is conducted under the supervision of DECH Supervisor and Assistant Supervisor. Bank of Tanzania appoints the Supervisor. The Assistant Supervisor is appointed by DECH Technical Committee from one of member banks on rotational basis of two months tenure. 

6. OBJECTIVE

To make arrangements for speedy, efficient and safety way of executing settlement of payment instruments payable or deliverable at or through offices of member banks.

7. ACHIEVEMENTS

DECH has facilitated:

8. CONTACTS

The offices of the Banking Department are located on the 1st floor of the Bank of Tanzania Building along 10 Mirambo Street.