COLLECTION OF CHEQUES

Credit timings:
• Local banks- 3 days
• Outstation :
• Metros- 8 days
• Other cities- 14 days
Responsibility of Paying:

• Local clearing – Both collecting bank and

Paying bank are in same city/town.
• Inter-city clearing - Banks are at different
location.
 Local clearing:

• High value clearing

• Main clearing
 Delay in collection:

 Delay for 90 days in outstation - 2% above the

fixed rate.
 Local cheques - Interest rate of savings account.
 Dishonoured cheques should be returned within
24 hours.
Magnetic Ink Character Recognition code

• Introduced by RBI in the late 1980’s.

• 59 MICR centres in India.
• Helps to minimise the delay.
Magnetic Media-Based Clearing System

• Computerise the operations of

clearing houses.
• 87 clearing houses at present.
Electronic Products
• Electronic Funds Transfer(EFT)- ATM
• Electronic Clearing Services(ECS) – Salary
Payment
• Real Time Gross Settlement(RTGS) - Instant
payment
Cheque Truncation System
• Electronic movement of images of cheques.
• Local clearing - T+0 days
• Inter-city clearing – T+1 days