February 11, 2011
Dear Valued Scotiabank Customer,
In an eﬀort to keep our customers informed, we would like to update you on the Payments Systems Reform process being implemented by the Bank of Jamaica (BOJ). e BOJ implemented a Real Time Gross Settlement (RTGS) system in February 2009. e RTGS is an on-line funds transfer system where the transfer of money is eﬀected from one bank to another in “real time”. e BOJ has indicated that eﬀective March 31, 2011, ﬁnancial transactions with a large value (i.e. $5,000,000 and above) are to be cleared via the RTGS system instead of the “regular clearing” system (Automated Clearing House/ACH), where all cheques are now cleared. Consequently, the BOJ will impose a penalty of $5,000 on any transaction of this value which is processed through ACH after March 31, 2011, providing the bank does not reduce its volume of large transactions by at least 50% over an assessment period. What does this mean for you? For any cheque that you write for $5,000,000 or above, your account will be automatically debited the penalty fee of $5,000 (plus GCT) as per the deferred charge imposed by the BOJ. Should BOJ advise Scotiabank that we will not be charged the deferred penalty fee at the end of the assessment period, we will then reimburse your account. Please also note that Manager’s Cheques will no longer be issued for $5,000,000 or above. What are your options? In order to avoid incurring the penalty charge, large payments can be done through our branch network. Simply present information on your payee’s bank, branch, and account number, and the funds will be electronically transferred from your account to the payee at a nominal cost. Another option, providing you have signed our fax and email indemnity form, can be to email or fax your instructions with the necessary details to your branch. We do appreciate that BOJ’s new fee will aﬀect our customers but hope that by providing you with options, the impact will be minimal. Please...
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