The Bank acts as banker to the commercial banks. All commercial banks maintain a deposit account at the Bank. These accounts are used to settle interbank transactions as well as for maintenance of a cash reserve requirement. The Bank provides liquidity to commercial banks through the Intraday Liquidity Facility (ILF).
The Bank is required, in conjunction with the commercial banks, to establish and maintain a Clearinghouse for cheques. The Clearinghouse, automated in 2023, operates each morning and transactions are settled daily over the RTGS.
