Cheque Collection Policy

In view of the guidelines issued by Reserve Bank of India from time to time and more so with a view  to  constantly upgrading the quality of customer satisfaction and also  identifying better avenues for customer service, bank  has  adopted  under mentioned Policy guidelines, for  collection of Local and  Outstation cheques :

(i)         Immediate Credit of Local &  Outstation Cheques :-

Immediate credit to the account of depositors of cheques shall be provided in case of all OUTSTATION cheques upto the value of Rs. 5,000/- , without waiting for receipt of Realisation Advice from the paying bank, subject to the following :-

  1. It is to be a KYC complied account
  2. The depositor must be a bonafide member of the Bank
  3. Total outstandings against Unsecured Loan/s availed by the depositor including the amount of this cheque not to exceed Rs. 1.00 Lac under any circumstances.
  4. Respective account must be a satisfactorily conducted account for a period of atleast  3 years continuously.
  5. The balance in the account has never been below the minimum        prescribed level during the immediate preceding one year and also average balance of   Rs.5,000/- has been maintained in the account  during the said period.
  6. No cheque, inward or outward, has been returned unpaid for want of sufficient funds in the account during last  12 months .
  7. The facility of giving immediate credit in respect of outstation cheques shall be subject to maximum of Rs. 5,000/- at any point of time.
  8. All usual charges as applicable for collection of similar type  of cheques shall be payable by the depositor.
  9. In case  of cheques in respect of which immediate credit has been allowed are returned unpaid, interest at the rate as applicable for Temporary Overdraft facility in the Current Account shall be recovered in addition to other usual charges as applicable in case of cheque returned unpaid.
  10. The above facility shall be allowed as a matter of normal practice without insisting for any specific written request from the customers to this effect.
  11. The above facility of immediate credit to the customers’ accounts may also be allowed in case of local cheques, if any customer wish to avail the facility and is prepare to pay the charges for the same, as applicable for collection of outstation cheques.

 (ii)        Time frame for Collection of Local/Outstation Cheques :-

All cheques drawn on  any bank in all the Metropolitian Centres and State Capitals shall be collected within a maximum period of  seven days.

However, the  cheques drawn on  any bank situated in  other major cities  with more than 100 branches of the banks are to be realized within a period upto the maximum of  10 days and in all other cases the maximum time frame for collection of the same shall be 14 days.

(iii)       Collection of Local Cheques :-
Under normal circumstances, credit in respect of all local cheques deposited by the customers shall be given latest  by the second working day after receiving the file of return session from the date of deposit of the cheques (deposited upto to 12.00 Noon on all weekdays and   11.00 A.M. on Saturdays).

 (iv) A   Payment of interest for delay in collection of outstation Cheques :-
Interest in case of delay in extending credit to the customer’s accounts beyond stipulated time frame as per para II above shall be payable as under :-

    1. In all cases of delay not beyond a period of 30days  in collection of outstation cheques,  interest at the rate applicable for Saving Bank Accounts shall be paid .
    1.  If the delay in realisation or credit of proceeds of cheques to the accounts of respective customers is beyond the period of 30 days, interest at the rate applicable for the relevant period on Fixed Deposit for the period of delay shall be paid .

(c) If the proceeds of cheques are to be credited to the borrowal accounts, interest for the period of delay  to be paid at Minimum Rate of Lending of the bank.
(d) No interest for delayed realisation  of cheque shall be paid if the same comes to less than Rs.5.00.

(e) However , interest where payable must be paid without any claim for the same by the Customers.
(iv)  B    Payment of Interest for delay in collection of local  cheques

                    (As per guidelines issued by RBI vide circular No.DPSS.CO.CHD.No.284/03.03.03/
2012-13 dated August, 13 2012)

a.) If delay in collection of local cheques on part of Bank beyond stipulated time frame then compensation at saving bank interest rate shall be paid to the customer for corresponding period of delay. Change in 31.08.2012

(v)        Implementation and Accountability and Special Precautions for quicker collection of outstation cheques

  1. All the branches must understand the necessity of adhering to the prescribed time schedule for collection of outstation cheques.
  2. All the branches shall maintain the record of delay in realisation of outstation cheques.
  3. All delay in collection of cheques, especially for a longer period must be enquired by the Manager and  if  delay has been caused due to negligence on the part of any member of staff he/she to be made accountable for the same.
  4. All cheques drawn on MICR Centers must invariably be presented through National Clearing Cell.
  5. All cheques, outstation as well as local, must be sent for collection on the same day except under any exceptional circumstances.
  6. Separate record in respect of local and outstation cheques to be maintained to monitor any delay in realisation of the instruments.
  7. Concurrent Auditor of the Bank shall ensure implementation of the above policy guidelines.
  8. Branches must make the customers aware of the above facility, suitably.
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