As a part of implementing cheque truncation in India, Reserve bank of India in has decided not to accept cheque with alteration or correction for clearing. Altered cheques will start rejecting with effect from 01.12.2010. At present the regulation is applicable to Delhi only. The notification is applicable for a cheque cleared under image based clearing system (CTS).This is not applicable for cheques clearing under other clearing arrangement.
As per RBI “Any alteration even if countersigned except a counter signed correction of date shall be returned if presented in clearing through …

Modern business demands faster cheque clearing system to meet immediate financial requirement and to make faster payments. Keeping this in mind Reserve bank of India has introduced many fast fund transfer system Like RTGS, EFT, ECS. However conventional method of issuing …

Demand draft is valid for six months from the date of issue where as Pay order has a validity of three months. Demand drafts are printed with “Valid for Six months only” and pay orders “valid for three months only” on its face. In rare cases the DD or pay order may not enchased within this validity period due to some reasons. We cannot loose the money because of the reason validity expired, so banker allow you to revalidating Demand draft and Pay orders.
To do so the customer should give …

Can we get a duplicate DD or PO if we lost the original one? The answer is yes, but you have to follow a little difficult process. The procedures for a duplicate Demand draft and pay order are almost same. It is always advised to keep all the details of the instrument or keep a copy of the DD or PO. With out the details of lost DD or PO it is difficult to issue a duplicate one, in practical; if you don’t have the details of the lost instrument, …

After launching private banking in India the face of banking is changed rapidly in terms of cutting edge technology and services. To provide best services to the selected customers, meeting certain eligibility criteria banks are started preferred banking.
Who can open privilege banking?

The customer should maintain average quarterly balance to a fixed amount in his savings account.
average quarterly balance should be maintained by the members of the same family.
Savings account plus fixed account of a customer should maintain average quarterly balance.
The average quarterly balance fixed should me maintained in flexi deposits

What …

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Pay order is an instrument that a banker issues after receiving funds from customer hence the payee assured of receiving the funds on presenting PO. Pay order is also known as banker’s cheque because it is issued by a bank and payable locally only. This means that you cannot issue a pay order to a customer who is out side of your city. Only Demand draft can be issued across the city. Also PO cannot be issued against cash Rs 50000.00, and pay …

One of your company branches in another Location urgently requires sum of Rs 100000.00, with in three to four hours. What will you do? Since your branch is far away it is impossible to send money by hand. One of the useful and fastest ways is RTGS. It is a fund transfer system from one bank to its branch and another bank branch. You can transfer money from your bank to your branch bank account through RTGS within two or three hours.It is faster than …

Most of us have deposited cheques in our bank account to collect amount from somebody or from a business. And bank collected the amount from issuer bank and credited your account. Let’s see what are the processes involved in it. Before knowing the clearing procedure you should know what a local cheque is? It is a cheque issued by a person or company in the same city where receiver bank located. Since issuer bank and receiver bank is located in the same city cheque …

Two in one account is benefited to customer by providing a Term deposit linked with SB account .The amount in excess to a particular limit in an SB account is automatically transferred to term deposited for a particular period. By default the period is one year. This kind of auto transfer is called auto sweep. Term deposit created through auto sweep carries a higher interest rate than SB Account and all other terms of interest payment and premature withdrawals are applicable on the day …

IFSC Code is a unique eleven digit code for the purpose of identifying bank branches in India. Some times it is difficult to identify banks by using place name, the coding system is very useful even if there are multiple branches are there in the same location for the same bank. It is an alpha numeric number First four character representing the banks code ,the next character reserved as control character Presently zero appears in the fifth position and remaining six characters to identify …