Kerala   

Same-day cheque clearing from Monday

MALAPPURAM: Starting from Monday, banks under the Manjeri Clearing House will introduce same-day ‘return clearing’ for cheques presented on week days.

In other words, cheques presented for clearing will be either cleared or returned on the same day depending on availability of funds in accounts.

Till now, banks used to wait till 12 noon the next day for clearing cheques.

The change in clearing timing is following a direction by the Reserve Bank of India (RBI) under its Uniform Regulations and Rules for Bankers Clearing Houses.

As per the new return clearing regime, a cheque presented for clearing will be honoured if there is enough cash in the account at 2 p.m. on the same day. If there is no money, the cheque will be sent back at the 3.30 p.m.

It will no longer wait till the next-day for clearing, said Mohammed Ali, Clearing House president and chief manager of State Bank of Travancore, which conducts the Clearing House.

However, the return clearing for cheques presented on Saturdays will take place on the following working day. Mr. Mohammed Ali said that faster return clearing would benefit the customers and the banks alike.

Customers do not have to wait till the third day for their cheques to be cleared.

For banks too, it ensures that account holders deposit their money a day ahead in order to avoid dishonouring of their cheques.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Banks face problems with education loans in Kerala
“UDF to blame for loss of land”
Flying start
Need to maintain continuity in efforts at all levels Peoplespeak
Need to maintain continuity in efforts
KSCB’s scheduled status
Court adjourns hearing in estate case
Next issue
CME to focus on common ailments
Vector menace
A different call of duty
Painting competition for students
Meet to discuss student travel
Same-day cheque clearing from Monday
Rise in tax collection at Manjeswaram
In keeping with a tradition
Imparting better skills Law & order
Succour for west Kochi
I’m a changed man: Maudany
Caring for the elderly
Restriction notices against known anti-social elements Law & order

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu