After reading this article you will learn about the collection of local and out station cheques.
Collection of Local Cheques:
All cheques and other negotiable instruments payable locally are presented through the clearing system prevailing at the center. Cheques deposited at the counters and in collection boxes within the branch premises before the specified cut-off time are normally presented for clearing on the same day.
All the customers accounts are credited on the day of clearing settlement (normally next day) but withdrawals are allowed after reckoning the cheque return schedule of the clearing house. Where no clearing house exists local cheques are presented on drawee banks across the counter and proceeds thereof are credited, on realization.
Collection Of Out Station Cheques:
Cheques drawn on other Banks at outstation centers in India are normally collected through local bank’s branches at these centers. Where the bank does not have a branch of its own the cheques are directly sent for collection to the drawee bank or collected through a correspondent bank
National Clearing Center:
In case center of National Clearing Services of Reserve Bank of India exist at the same center, most of the banks collect outstation cheques through National Clearing.
Outstation Cheques Drawn On Banks Own Branches:
Outstation cheques drawn on Banks own branches are collected using inter-branch arrangements in vogue. The branches, which are connected through a centralized processing arrangement and are offering ANYWHERE BANKING services to its customers, provide credit to the accounts of its customer on the same day through the centralized banking system.
Instant Credit of Outstation Cheques:
Branches will, of their own, afford immediate credit of outstation cheques upto and inclusive of Rs.15000 /-tendered for collection by customers for satisfactorily conducted accounts. (The amount of Rs. 15000/- may differ from bank to bank).
For the purpose of this policy, a satisfactorily conducted account shall be the one:
a) i) Opened at least six months earlier and complying with KYC norms.
ii) Account is neither dormant nor inoperative.
iii) Where bank has not noticed any irregular dealings/suspicious transactions in the last 6 months.
iv) Where the bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving credit.
v) Where no adverse features attached to the account/account holders has been brought to the notice of the bank.
b) The facility will be available to all individual deposit account holders without making a distinction about their accounts i.e., Savings Bank/Current Account etc. It will be available at all branches /extension counters.
c) Normal collection and out of pocket charges are to be recovered for outstation cheques. However, no “exchange” will be charged.
d) In case of outstation cheques, the facility will be restricted to one or more cheques for aggregate amount not exceeding Rs.15000/ at a time ensuring inter-alia that the liability on account of outstanding of cheques purchased does not exceed Rs. 15000/ at any time. The limit of Rs. 15000/- may differ from bank to bank. Please contact your bank to know this limit.
e) Bank manager may allow instant Credit for local cheques also subject to charging of some commission.
Cheques Payable in Foreign Countries:
Cheques payable in foreign country where the bank has branch operations/banking operations through a representative, subsidiary etc., are collected through that office. Some time services of corresponding banks are also utilized at these centers where the bank has no presence.
In case bank has neither a corresponding bank nor its own presence, in such cases the cheques are sent directly to the drawee bank with instructions to credit proceeds to the respective NASTRO ACCOUNT of the bank maintained with one of the corresponding banks.
Within the country all cheques are collected through Clearing Houses.