Kheman
Asked November 19, 2013

inter city check deposit policy

  • 3 Answers
  • 116 Views

I deposited my cheque with the bank where I have my savings account. My account is in Kolkata but the cheque was drawn by a bank in Delhi. It has been seven days but my cheque has not been credited. I wanted to know if there is any time period within which a bank is bound to process an inter-city cheque?

Answers 3


Yes, there is time limit within which the bank is bound to process an inter-city cheque.

There are guidelines provided by RBI regarding the time period. Generally, if a cheque is to be paid within the same city (local cheque), it would take 2-3 days. In some large cities, there is a system called High Value Clearing which facilitates completion of cheque clearing cycle on the same day and the customer depositing the cheque is permitted to utilize the proceeds by the morning of next day. In the case of Outstation Cheques (inter-city), the time taken would vary from 3-10 days. Banks generally publicize their Cheque Collection Policy so that customers have an idea as to when the proceeds would be available for utilization by the customer. For delay beyond the pre-announced period, the banks are required to compensate the customer (even without customer asking for the same).[1] This means that although there is a broad time frame provided by RBI but different banks can have different policies regarding the time period.

 

But the time period provided for clearance of inter-city cheques is much longer as compared to the local cheques. This is why the RBI introduced the Speed Clearing System (SCS), which has cut the time taken for clearing outstation cheques to less than 48 hours. The SCS leverages on the centralization of banking operations made possible through core banking solutions (CBS). This obviates the need for the physical movement of cheques. Under this system, cheques payable at a CBS-enabled branch anywhere in India are realized through local clearing. Hence, the time taken to process outstation cheques is gradually becoming similar to that for a local cheque. However, SCS is currently available at 66 centers that use the magnetic ink character recognition technology (MICR).[2]

 

All the banks have to follow this rule laid down now and the clearance of inter-city cheques should be at par with the local cheques.

Therefore, the time taken for clearance of your inter-city cheque should be less than what it has actually taken in your case. And since there has been a delay in your case so your bank should compensate you for your loss.

 

[1] RBI Circular, available at www.rbi.org

[2] Sushmita Choudhury, “Cheque it out”, Business Today, May 2010

Agree Comment 0 Agrees over 3 years ago

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Prerna

generally it is cleared in three days if not then complain to the bank manager or there is a special complaint redressal mechanism estb for various banks. If the bank doesnot take action RBI will take action against the bank

Agree Comment 0 Agrees over 3 years ago

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