UK bank cheques to clear within 24 hours by 2018

Britain's antiquated cheque clearing system will finally enter the 21st century later this year when new imaging technology will allow them to clear within a day instead of the current six.

The Cheque and Credit Clearing Company (C&CCC), which manages the cheque clearing system, said the new system will go live with “some” banks and building societies from October 30.

Every financial institution should be using the system by the second half of 2018, C&CCC said.

It will mean that cheques will be cleared using a digital image of it instead of the current paper-based clearing system where they are transported around the country to be cleared it added.

C&CCC said 477m cheques were used for payments and to acquire cash across the UK in 2016, showing they were “still an important part of the payments landscape”.