COLLECTION SERVICE

Immediate credit of local as well as outstation cheques upto Rs.15000/- is provided to the customers who are maintaining satisfactory accounts. However, the customers will have to bear usual service charges as well as postal charges. In the event of cheques being returned unpaid, the customer will have to pay interest for the period for which funds are utilized.

Cheques (local or outstation) deposited by the customers are cleared by the Bank as follows:

  LOCAL HIGH VALUE CLEARING

The facility is available for the clients of selected branches at designated centres. Cheques of high value (of not less than Rs.1.00 lac per instrument) are cleared on the same day except Saturday subject to depositing of the cheques/ instruments in time.

  LOCAL NORMAL CLEARING

Cheques are cleared normally on the third working day, depending on the centre and subject to depositing of the cheques/ instruments in time.

  COLLECTION OF OUTSTATION CHEQUES

• Cheques drawn on banks located in Metropolitan centres and presented for collection on any day in a week will be credited latest on the same day in the following week, even if the collection advices are not received from the drawee centres.
• In case the drawee as well as collecting branches are situated at State capitals other than North Eastern States and Sikkim, other centres with more than 100 bank offices and District Head Quarters- 10 days.
• For all other centres including North Eastern States and Sikkim- 14 days.

  INTEREST PAYMENT FOR DELAYED COLLECTION

In case the Bank fails to credit the proceed within the above time frame interest will be paid for delay in collection at the following rates:

• If the delayed period beyond the stipulated days, as mentioned above, is less than 15 days, interest will be paid at savings bank rate for the delayed period.
• If the delayed period beyond the stipulated days, as mentioned above, is more than 15 days, interest will be paid at the rate of fixed deposit for the delayed period.
• If the delayed period beyond the stipulated days, as mentioned above, is more than 45 days, interest at the rate of 2% above the fixed deposit rate will be paid for the delayed period.
• Where the proceed of outstation instrument is to be credited in the borrowal account, interest for the delayed period beyond the stipulated days for collection, as mentioned above, will be paid at the rate applied to the respective loan account.

  DISHONOR OF CHEQUE

In case of dishonor of a cheque deposited by a customer for clearing/collection Bank
within 24 hours should return/ despatch to the customer the instrument returned unpaid by the drawee bank.

  LOSS OF CHEQUE

• In respect of cheques lost in transit or in the clearing process or at the paying bank's branch, the bank should immediately bring the same to the notice of the account holder so that account holder can inform the drawer to record stop payment and can also take care that other cheques issued by him/her are not dishonoured due to non-credit of the amount of the lost cheques/ instruments.
• The onus of such loss of cheques lies with the collecting banker and not the account holder.
• The bank should reimburse the account holder related expenses for obtaining duplicate instruments and also interest for reasonable delay occurred in obtaining the same.