Kerala - Kochi   

Speed clearing of cheques in city from February 2

KOCHI: ‘Speed clearing,’ which will greatly reduce the time taken to get outstation cheques and other banking instruments encashed, will begin in the Kochi region from Monday.

The facility will be available to all core-banking-enabled member banks of the Ernakulam Bankers’ Clearing House. Since most of the nationalised banks, new-generation private banks and leading old-generation private banks have now implemented core banking (centralised banking solution), their customers can benefit from speed clearing. Core banking helps customers of a particular bank branch to access their accounts from any branch in the country. The bank too can access the customers’ account information from anywhere in the country.

Speed clearing will help banks in the Kochi region to pay outstation cheques without having to physically send them to the drawee bank for clearing.

This will mean that outstation cheques drawn on branches covered under the core banking system will be treated as local cheques for clearing purpose, thus saving time and collection charges. At present, a customer who presents to his bank a cheque drawn on a bank in another city, say New Delhi, has to often wait one to two weeks before the money gets credited to his account. Once the speed clearing is implemented, it would not take more than two days.

There will be no collection charges for cheques under Rs. 1 lakh. But, for every cheque above Rs. 1 lakh, Rs. 150 will be charged.

Kochi is the second city in Kerala that is linked to speed clearing. It started in Thiruvananthapuram in December. Thrissur and Kozhikode will go for it in a couple of months, a senior bank officer said.

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