On December 14, 2022, the Central Bank of the Republic of Nicaragua (“CBN”) approved Resolution CD-BCN-LXXX-1-22 “Check Truncation Regulation” (hereinafter, the “Regulation”) with the in order to regulate and establish the requirements and procedures that must be met in the process of truncation of bank checks by the participants of the Nicaraguan Interbank System of Electronic Payments (SINPE), as well as regulate the probative value of the images of the check.
The Regulation defines “Check Truncation” as the procedure by which the physical exchange of the check is reduced or eliminated, being replaced in part or in its entirety by electronic records or electronic images of the check processed and transmitted through the payment system, in which the depository participant transmits to the drawee participant the relevant information about it, without it being necessary to send the original physical check that has been truncated to carry out the operation.
Under this initiative, as of August 14, 2023, checks for amounts equal to or less than seventy-five thousand córdobas (C$ 75,000.00) equivalent to approximately two thousand United States dollars (US$ 2,000.00) may be digitally emitted for truncation. This amount will be reviewed by the CBN at least once a year to analyze the need to modify it.
