5.3 Settlement and Clearing of Cheque Payments

Clearing is the exchange of cheques and instruments among banks at a clearing house (in Nepal operated under NRB's oversight), where net balances are settled through the banks' accounts at NRB. The flow: presentation, exchange, netting, settlement, return of unpaid items with returnreasons. Electronic clearing (e-interbank systems) has replaced paper exchange for most volume, but the legal logic — netting then settlement in central bank money — is unchanged.