Cheque Collection Policy for Individual Customers
 

Immediate credit of cheques/ instruments upto the aggregate value of Rs.15,000/- (Rs.fifteen thousand only) tendered for collection by individual account holder will be afforded at the specific request of the customer or as per prior arrangement, subject to satisfactory conduct of such accounts for a period not less than six months. In case of prepaid instruments like Demand Draft, Interest/ Dividend Warrants etc. as also instruments drawn by government departments and undertakings the immediate credit facility will be extended up to the aggregate value of Rs.25,000/- (Rs. twenty five thousand only). The facility would also be made available in respect of local cheques at centres where no formal clearing house exists.

Bank shall levy normal collection charges and out of pocket expenses while providing immediate credit against outstation instruments. Exchange charges applicable for cheque purchase, will not however be charged.

If a cheque sent for collection, for which immediate credit was afforded by the Bank, is returned unpaid, the value of the cheque will be immediately debited to the account and interest shall be recoverable from the customer for the period the Bank remained out of funds at the rate applicable for overdraft limits sanctioned for individual customers.

However, the customer will not be charged any interest from the date of immediate credit to the date of return of the instrument unless the Bank had remained out of funds on account of withdrawal of funds. Interest, where applicable, will be charged on the notional overdrawn balances in the account, had credit not been given initially.

If the proceeds of the cheque credited to the Savings Bank Account was not withdrawn, the amount so credited will not qualify for payment of interest when the cheque is returned unpaid. If proceeds were credited to an overdraft/ loan account, interest shall be recovered at the rate of 2% above the interest rate applicable to the overdraft/ loan account from the date of credit to the date of reversal of the entry if the cheque/ instrument was returned unpaid to the extent the Bank was out of funds.

Time frame for collection of cheques through local clearing

The cheques deposited by customers upto three hours before the respective clearing schedules will be sent to the clearing house on the same day.

For high value cheques - Proceeds will be credited on the same day, excepting Saturday (applicable only in areas covered by high value/same day clearing).

For normal clearing cheques - Credit will be afforded on the date of settlement of fund in clearing and the account holder will be allowed to withdraw fund as per return clearing norms in vogue.

Time frame for collection of outstation cheques

1. Cheques presented at any of the four major Metro Centres (New Delhi, Mumbai, Chennai & Kolkata) and payable at any of the other three centres : Maximum period of 7 days.
2. Cheques and other instruments sent for collection to Metro Centres and State Capitals (other than those of North Eastern State and Sikkim) : Maximum period of 10 days.
3. In all other centers : Maximum period of 14 days.

Interest Payment for delayed collection

1. Savings Bank rate for the period of delay beyond 7/10/14 days, as the case may be, in collection of outstation cheques.

2. Where the delay is beyond 14 days, interest will be paid at the rate applicable to the term deposit for the respective period.

3. In case of extraordinary delay. i.e. delays exceeding 90 days, interest will be paid at the rate of 2% above the corresponding Term Deposit rate.

4. In the event, the proceeds of cheque under collection were to be credited to an overdraft/loan account of the customer, interest will be paid at the rate applicable to the loan account. For extraordinary delays, i.e. delays exceeding 90 days, interest will be paid at the rate of 2% above the rate applicable to the loan account.