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Wednesday The clearing is of two types. 1. sOut ward clearing 2. Inward clearing Today I learned about outward clearing.

Outward clearing The cheques are drawn on us. OR The cheques which are drawn to our branch. In this type of clearing other banks cheques are deposited to our branch. This cheque is deposited to our customer account. To deposit the cheque deposit slip is filled and amount credited to the customer account. We send these cheques to NIFT situated at Lahore. When sending these cheques we total the cheques to be sent for clearing. Write the total on BUNDLE COVER: CLEARING and total number of instruments/cheques is also written on this. These cheques are stamped with Crossing Stamp Clearing Stamp Payees account will be credited for Stamp The procedure of this type of clearing is as follows, Customer comes to us with the cheque of other than our branch We deposit this cheque to customer account We lodge this cheque to customer account The date of lodging is one day next from today Cheque is sent to NIFT for clearing NIFT send this cheque to relative branch of bank This branch does scrutiny of this cheque and return to NIFT NIFT send this cleared cheque to our branch We release clearing and credit customer account Thursday Today I learned about Inward Clearing. Inward Clearing The cheques are drawn off us. OR The cheques drawn by our branch. When we receive these cheques, we do scrutiny and return these to NIFT. The procedure of this type of clearing is as follows, Our branchs cheque is deposited in any other bank or in any other branch of our branch. They send this cheque to NIFT NIFT send this cheque to us We do scrutiny and send these cheques to NIFT

NIFT send these cheques to relative branch My senior told me that outward clearing is in our favoure but inward clearing is not in our favour. Because in outward clearing money is increasing in our branch and in inward clearing money is decreasing in our branch. Friday Today I learned about why cheques are returned? To return cheques Memorandum is filled which contain this information. Branch stamp, date, cheque number, amount of cheque and these reasons for return of cheque. Cheques are returned due to these reasons. Funds not sufficient. Funds exceeds agreed/sanctioned limit. Funds not available immediately may be presented again. Payment stopped by drawer. Irregular stamp. Drawer signature differ/required. Alternations in date/figures/words requires drawers full signature. Cheque is post dated/ out of date mutilated. Amount in words and figures differ. Crossed cheque must be presented through bank. Clearing stamp and bankers own stamp required. Addition to banks discharge should be authenticated. Cheque crossed Account Payee Only. Collecting banks discharge irregular / required. Others. Saturday Toda I learned about penalties on return o cheques. Penalties for outward cheque return: Rs. 400 for all account holders except Business partner plus A/c and current account having balance of at least Rs. 250000. Current account will be charged if balance is less than Rs. 250000. Penalties for inward cheque return: If inward cheques are returned then all account holders have to pay Rs. 400 as penalty. No one is exempt.