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 [...]
This article provides a short note on cheque truncation. Cheque truncation is the process of stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument will be truncated at same point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with [...]
After reading this article you will learn about the clearing process of cheques. The clearing process begins with the deposit of a cheque in a bank. The cheque (along with other cheques) is delivered to the bank/branch where it is drawn. The cheque is passed for payment if the funds are available and the banker is satisfied about the genuineness [...]