The State Bank of Pakistan (SBP) has completed preparations to introduce a new cheque clearing system, with its pilot phase set to begin on October 15, 2026.
Under the new system, banks will clear cheques using electronic images instead of physically transferring the original paper cheques between banks.
The SBP said the pilot phase of the Pakistan Express Cheque System (PECS) will begin on October 15, while the system is expected to be fully implemented across the country by April 30, 2027.
How will the new system work?
Under PECS, when a customer deposits a cheque at a bank, the bank will scan the cheque and send its electronic image to the clearing house, National Institutional Facilitation Technologies (NIFT).
NIFT will then forward the electronic image to the relevant branch. The bank will use the image and captured cheque data to decide whether to process the payment or reject the cheque.
What will happen to the physical cheque?
The original paper cheque will remain with the bank where it was deposited until it is received by the clearing house.
However, if the paying bank has concerns about the authenticity of the cheque or its electronic image, it can mark the transaction as “Defer for Physical” and request the original paper cheque for verification.
How will cheques be scanned?
The branch where the cheque is deposited will scan it using a designated scanner and send the electronic image to NIFT’s system.
If a branch does not have scanning facilities, NIFT will collect and scan the cheque itself before sending the electronic image to the relevant bank.
The SBP said the pilot phase will run from October 15 to November 15 and will initially involve selected banks and institutions.
From November 16 to December 31, the system will be gradually expanded to other participating institutions and their branches.
The new system is aimed at making cheque clearing and settlement faster, more efficient and secure, while also strengthening Pakistan’s digital payments infrastructure.
