CPA Seeking Feedback for Image Rule Project – Phase IV Consultation

January 16, 2013

Note: The consultation period has ended on March 16, 2013.

In Canada, after a cheque is deposited, it must be presented to the financial institution on which the cheque is drawn (the drawee), or its agent, so that the drawee can decide whether to honour the item. Depending on the physi­cal distance between the two financial institutions, presentment can take several days. The time that it takes for a cheque to be presented, potentially dishonoured and subsequently returned, means that a depositor may not be aware that a pay­ment has been refused for several days following the initial cheque deposit.

The CPA’s multi-phased Image Rule project aims to create efficiencies in the clearing process for paper payments such as cheques through the increased use of image technology in the clearing system by amending Rule A10 and Standard 012.

What’s been done so far

  • Phase I - June 1, 2010: established requirements and technical standards related to image creation and storage.
  • Phase II - June 1, 2011: established an enabling framework for the optional creation and use of Return Replacement Documents (RRDs).
  • Phase III - October 1, 2012: established an enabling framework for the optional creation and use of Clearing Replacement Documents (CRDs), instead of the original paper cheque.

What’s new

In Phase IV, the final phase of the project, the CPA will propose amendments to create an enabling framework of rules and standards to allow members to exchange items electronically with other Direct Clearers supported by CPA Rules and Standards.

The CPA has launched a 60-day consultation period with CPA members, stakeholders and the public on the proposed amendments to Rule A10 from January 16, to March 16, 2013.

To learn more

The following documents on Image Rule Phase IV are available for review and feedback:

Have your say

Given that any impacts of this proposal will largely be borne by CPA member financial institutions, portions of this document are highly technical and operational in nature. However, the CPA invites all interested parties to comment on this proposed framework and/or the consultation questions contained within this consultation paper by sending written comments to consultation@cdnpay.ca by March 16, 2013.