All cheques and other negotiable instruments payable locally will be presented through the clearing system prevailing at the centre. Cheques deposited at Branch counters, Cheque collection machine and in collection boxes within the Branch premises before specified cut-off time will be presented for clearing on the same day. Cheques deposited after the cut-off time will be presented in the next clearing cycle. To fix the cut-off time limit for receipt of cheques will be decided by respective Branch Manager as per locations, based on local practices (Cut-off time will be display on the collection counter) The Bank will give credit to the respective customer account on the same day in which the clearing settlement takes place. Withdrawal of amounts so credited would be permitted as per the cheque return schedule of the respective clearing house.
1.2 Cheques Payable Aboroad
- Branches will receive the cheques/instruments and the application in prescribed format from the customers during business hours and will forward the same to HO-IBD for realization.
- The instruments will be sent to Nostro/Correspondent Banks by courier for realization where said services are available.
- The instruments which are payable in countries where the services stated in 03.02 above are not available will be sent to “Drawee Bank” for realization.
- The instruments drawn in currencies in which Bank does not maintain position shall be collected through other Bank in India as per arrangement.
- The instruments will be sent for collection as stated above at least once in a week to achieve economy in courier expenses.
- Instruments payable outside India will be collected at the risk & responsibility of the customers for which a prescribed application is submitted to the branch by the customer.
1.3 Where no Clearing House exists
Bank branches situated at centers where no clearing house exists would be present local cheques on drawee banks across the counter and proceeds would be credited at the earliest, on realization.
1.4 Cheques drawn on Bank’s own local and outstation Branches
Cheques drawn on Bank’s own Branches, at local or at outstation centers, irrespective of amount, received across the counter, through CDM or Drop Box are not required to be presented in clearing or purchased. These cheques will be paid by the receiving Branches at their end after verifying the genuineness of the cheque and observing all necessary precautions for payment of cheques, as if these have been drawn on them and will be afford credit directly to the payee’s account using the CBS strength. In exceptional cases, such as –non availability of drawing power, any lien/stop / hold restrictions, exceeding limit in case of advance/loan account—inter branch cheques will be present through clearing cycle.
1.5 Outstation Cheques
Cheques drawn on other Bank’s at outstation will normally be collected through Bank’s Branches at those centers. Where the Bank does not have a Branch of its own, the cheques would be directly sent for collection to the drawee or collected through correspondent Bank, and recover applicable service charges as per RBI’s instruction regarding collection of outstation cheques.
1.6 Speed Clearing
- In order to facilitate faster collection of outstation cheques, the Reserve Bank of India started clearing called “Speed Clearing” by leveraging the core-banking –solutions (CBS) implemented in banks.
- Speed clearing refers to collection of outstation cheques through the local clearing. It facilitates collection of cheques drawn on outstation core-banking enabled branches of banks, if they have a networked branch locally. (Except Government cheques). This facility is presently extended at 66 MICR cheque processing centre locations in India. Under Speed Clearing outstation cheques would be realized on T+1or 2 basis.
- As per RBI guidelines, Banks are permitted to levy charges as per their description for cheques above rupees 1 lakh presented through Speed Clearing.
1.7 Collection of third party cheques
- Not to collect cheques crossed “account payee” through third party accounts
- As per RBI circular No UBD.BPD.Cir. No41/12.05.001/2010-11 dated 29/03.2011
has allowed Banks to collect third party account payee cheques deposited by CreditSocieties in their account for an amount not exceeding ` 50000/- subject to:-
- The Co- Operative Credit Society’s current account to be opened as per the KYC norms.
- Forms of agreement cum undertaking to be executed with the society on franking of Rs. 200/-
1.8 Validity of collection of cheques
Validity of collection of cheques is three months, means any cheque/ instrument issued on or after 1st April, 2012 shall have validity period of three months.