Cheque Collection Process Article

STATE BANK OF TRAVANCORE

CHEQUE COLLECTION POLICY ‘12

1 . PREAMBLE

1 . Bank's Check Collection Insurance plan (CCP) is definitely reviewed each year, as per the suggestions issued by simply Reserve Traditional bank of India (RBI)/IBA/BCSBI from time to time. The Policy duly given the green light by Bank's Plank of Directors shall be browse as Bank's Cheque Collection Policy -2012-'13. 2 . Bank's Cheque Collection Policy document has been developed as a extensive document with transparency covering up following elements, taking into account our technological capacities, systems and processes used for clearing arrangements and other internal agreements for collection through different methods. The method for assortment of domestic cheques/instruments and worldwide instruments have been placed in Annexure-I & III respectively, which will, inter alia, incorporate the next:

a) Detailed procedure for collection of cheques (local and Outstation). b) Collection of cheques between two banks and between CBS and non-CBS branches of other banking companies. c) Lowered time frame intended for collection of outstation/local cheques attracted on branches of the Traditional bank d) Fees for postponed collection in a progressive method e) Levels of cheques about which instant credit is usually to be provided. f) Revised business processes keeping in view the BPR endeavours taken and technological progress made by the financial institution viz:

i) Core Bank Solutions (CBS)

ii) Centralised Clearing Control Centre (CCPC)

iii) Multicity Cheques (MCC)

iv) MICR Clearing Zones (MICR CC)

v) Speed Clearing Program (SCS)

vi) Cheque Truncation System (CTS)

(Brief description of the processes/developments, in respect of these is given in Annexure-I)

3. The Cheque Collection Policy protects following rules issued by regulators to get smooth conduct of clearing cycle. my spouse and i. The Support charges for savings lender customer to get collection of outstation cheques approximately Rs. 1 ) 00 lac has been required by the RBI w. elizabeth. f. very first April, 2011, whereas Financial institutions have been offered freedom to solve charges intended for current account clients and also intended for collection of outstation cheques past Rs. 1 ) 00 lac. Accordingly, State Bank of Travancore have got rationalized the service costs for variety of outstation cheques, which is program enabled intended for realization of the identical.

ii. The Assistance charges intended for Speed Eradicating System has also been revised which is applicable for collection of outstation cheques in the local clearing treating the instruments as nearby drawn.

3. The above charges are applicable only to the orders originated and payable in India.

4. To reduce the clearing routine and to promote electronic function of repayment, drawee financial institutions are using RTGS/NEFT/ECS for remittance of cash.

sixth is v. In the case of collection of outstation cheques at centers, where the Speed Clearing Method is not appropriate, the collecting and having to pay banker has to share 40: 50 expenses for variety of outstation cheques.

vi. The SC/DDP software has been executed for variety of outstation cheques of different banks where the speed removing system is not available in the eradicating process.

vii. To further improve upon the reconciliation process and as a deterrent against perpetration of fraud, Traditional bank has introduced a single design secureness form, generally known as " Inter Office Instrument (IOI)”, covering all the three modes of remittance, viz; Draft, Bankers' Cheque, Pay-order. This is payable across all CBS limbs of SBT, thus obviating the risk of the fraudulent repayment of these kinds of instruments

1 . 4REVISED SUGGESTIONS

The Reserve Financial institution of India (RBI) have got issued pursuing guidelines subsequent to the issuance of our Bank's Cheque Collection Policy-2010 intended for collection of Outstation cheques which were incorporated inside the revised Insurance plan documents.

we. Standardisation and Enhancement of Security Features in...

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