The process of transferring funds from the bank on which a cheque is drawn to the bank in which it was deposited. If a bank does not have a clearing arrangement with the bank on which a cheque is drawn, it will be unable to accept cheques from its customers drawn on that bank. Clearing of cheques takes some time since this involves presentation of the cheque to the bank on which it is drawn, and checking its authenticity. The clearing of cheques issued by banks in Malta is managed by the Malta Clearing House and the Central Bank of Malta is responsible for its operational management.
