Cheque Collection Policy

The Cheque Collection Policy of the bank would be as follows:

   1. Local Cheques

A cheque drawn on a bank branch in the same city as the bank branch where it is deposited is called a local cheque.

A cheque drawn on a bank branch in a different city from the bank branch where it is deposited is called an outstation cheque.
Outstation cheques up to Rs.15,000/- would be immediately credited to the account subject to following terms and conditions.

Cheques of other Banks

• Upto Rs.1.00 lac – Rs.3.00 per thousand (Minimum Rs.30/-)
• Above Rs.1.00 lac – Rs.2.50 per thousand.

Postage and commission charged by other Banks will be debited to the account.

5. In the event of cheque being return unpaid, bank could recover interest at a rate as prescribed by the bank for the period amount credited to the account and the customer may not enjoy this facility in future.

• No interest is to be charged to the customer for the period between the date of credit of the outstation cheque lodged and its returned.
• In case there is no credit balance in the account bank may charge interest from the date of return of a cheque till the reimbursement of money to the bank.
• Whereas the cheque is credited to a Savings Bank Account, no interest will be payable on the amount so credited, if the cheque is returned unpaid.
• In case , if cheque  is returned unpaid, returned to the customer with a return memo of the drawee bank, through a post or courier  etc;  Also intimated by telephone or e.mail
6.  The time frame for collection of local and outstation cheques

a. Local cheques
The customers’ accounts should be credited latest on the third working day from the date of acceptance of cheque for collection.

b. Outstation cheques

Outstation cheques sent for collection at state head quarter  and North Eastern region and Sikkim should be collected and credited to customers account within 10 days and 21 days respectively.

Where the bank does not have a branch of its own the instrument would be directly sent for collection to the drawee bank  or collected through a correspondent bank.  The time required for collection  may be from 10 to 21 days.
Cheques drawn on foreign banks at centres where the bank does not have its presence will be sent directly to the drawee bank with instruction to credit proceeds.   But bank will not be in a position to ensure timely collection from overseas banks  as practice for collection  vary from country to country.

7. Interest payment for delayed collection of cheques

If the proceeds of outstation cheques to be credited to the deposit accounts of a customer and delayed for collection of cheques beyond 10 to 21 days.  In that case bank will pay interest at rate as applicable for appropriate tenor of fixed deposit for delayed period.  Whereas in case of Cash Credit, Overdraft or Loan Account at a minimum lending (PLR) rate.

8. Cheque lost in transit

In the event of cheque is lost in transit or in the clearing process or at the paying bank’s branch, bank shall immediately bring to the notice of the account holder so that drawer can be informed for the stop payment of the cheques and also take care that any cheques issued by him are not dishonored, due to non credit of the amount of lost cheques.  The bank would advise to the drawee bank all particulars of lost cheque for exercising caution and provide all assistance to the customer in obtaining a duplicate cheque from the drawer of the cheque.




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