All cheques and other Negotiable Instruments payable locally would be presented through the clearing system prevailing at the centre. Cheques deposited at branch counters and in drop boxes within the branch premises before the specified cut-off time will be presented for clearing on the same day. Cheques tendered after the cut-off time and dropped in collection boxes out side the branch premises including off-site ATMs will be presented in the next clearing cycle. As a policy bank would give credit to the customer’s account on the day when clearing settlement takes place. Withdrawal of amounts so credited would be permitted on receipt of cheque return schedule from the clearing house. Wherever applicable, facility of high-value clearing (same day credit) will be extended to customers.
Negotiation of local cheques/instruments will not he encouraged. However, Branch Managers may use their discretion in exceptional circumstances to permit immediate credit of local instruments upto Rs.20000/- for deposit accounts on recovery of collection charges of Rs.100/- per instrument.
No charges will be levied for local collection of cheques/instruments which are collected through clearing except for item (1) above.
Bank branches situated at centres where no clearing house exists, would present local cheques on drawee banks across the counter and it would be the bank’s endeavor to credit the proceeds at the earliest.
The customer’s account would be credited in respect of local cheques latest on 3rd working day from the date of acceptance of the cheque at the counters and deposited in drop boxes within the time indicated for local clearing and on 4th working day if deposited beyond the timings indicated on the drop boxes.
- Bank would make available, in public domain, the cut-off time upto which the cheques received will be sent for clearing the same day
- The cut-off time prescribed would be indicated on the face of the drop box
- Cut-off time for High Value Clearing (same day credit) would be available in public domain
- Cut-off time for receipt of cheques for payment to Govt. accounts like IT etc., would be clearly displayed in the branches transacting Govt. business.
Cheques of high value (Rs.1 lac and above) will be cleared on the same day at designated centers where branches participate in high value clearing.
Branches/extension counters of the bank will consider providing immediate credit for local cheques / instruments up to an aggregate value of Rs.20000/- tendered for collection by an eligible account holder subject to satisfactory conduct of his/her account for a period not less than 6 months. This facility of immediate credit will also be made available in respect of local cheques at centres where no formal clearing house exists.
Bank will afford immediate credit for all instruments payable at par like Interest/Dividend warrants at all its branches.
Prepaid instruments like Demand drafts, etc., drawn on our own branches should not be treated on par with cheques and immediate credit will be afforded as the bank has already received funds.
Cheques drawn on other banks at outstation centres will normally be collected through bank’s branches at those centres. Where the bank does not have a branch of its own, the instrument would be directly sent for collection to the drawee bank or collected through a correspondent bank. The bank would also use the National Clearing services offered by the RBI at centres where such collection services exist.
Cheques drawn on bank’s own branches at outstation centres will be collected using the inter-branch arrangements in vogue under CBS network.
For cheques and other instruments sent for collection to centers within the country:
- Cheques presented at
- any of the 4 Major Metro centers (N.Delhi, Mumbai, Kolkata & Chennai) and payable at any of the other 3 centers, and
- Metro centers and State capitals (other than those of North Eastern States and Sikkim): Max. 10 days
- In all other centers: Max. 14 days
Branches/extension counters of the bank will consider providing immediate credit for outstation cheques / instruments up to an aggregate value of Rs.20000/- tendered for collection by an eligible account holder subject to satisfactory conduct of such account for a period not less than 6 months.
The facility of immediate credit will be offered on Savings Bank/Current/Cash Credit accounts of the customers. For extending this facility there will not be any separate stipulation of minimum balance in the account.
In the event of dishonor of cheque against which immediate credit was provided, interest shall be recoverable from the customer for the period the bank remained out of funds at the rate applicable for overdraft limits sanctioned to individual customers.
- Opened at least six months earlier complying with KYC norms
- Conduct of which has been satisfactory and bank has not noticed any irregular dealings.
- Where no cheques/instruments for which immediate credit was afforded returned unpaid for financial reasons
- Where the bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving immediate credit.
Bank shall levy normal collection charges and out of pocket expenses for the cheques/instruments upto Rs.20,000/- while providing immediate credit in respect of Outstation instruments tendered for collection. In such cases exchange charges applicable for cheque purchase will not, however be charged.
If a cheque sent for collection for which immediate credit was provided by the bank is returned unpaid, the amount of cheque will be immediately debited to the account.
The Bank shall recover interest at Clean OD rate for the period bank remained out of funds and recover prescribed cheque returned charges subject to following.
- No interest will be charged to the customer for the period between the date of credit of the outstation cheque lodged and its return.
- Bank will charge interest from the date of return of the cheque till the reimbursement of money to the Bank.
- Where the cheque is credited to a SB a/c, no interest will be payable on the amount so credited if the cheque is returned.
- If proceeds are credited in an OD/Loan a/c interest would be recovered at applicable rate on the amount of returned cheque/instrument.
Bank would provide adequate compensation to its customers for any delay caused beyond stipulated period in collection of cheques/instruments and also loss of cheques in its custody as per the Bank’s Compensation Policy.
Cheques payable at foreign centres where the bank has branch operations (or banking operations through a subsidiary, etc.,) will be collected through that office. The services of correspondent banks will be utilized in country/centres where the correspondent has presence. Cheques drawn on foreign banks at centres where the bank or its correspondents do not have direct presence will be sent direct to the drawee bank with instructions to credit proceeds to the respective NOSTRO account of the bank maintained with one of the correspondent banks.
Bank will credit the proceeds on due date for credit, which is arrived at after taking into account the normal cooling period of 21 days from the date of credit to NOSTRO. The rate of exchange will be TT buying rate prevailing on the date of conversion of foreign currency amount in to Indian rupees.
Compensation will be given for delays beyond a week from the above due date for credit, as per Rule 4.3.A of FEDAI.