What is the Local clearing procedure?
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 realization done within the city. Now let us see the clearing procedure. Consider scenario State bank of India gets thousands of cheques for clearing each day from its customers. These cheques may be drawing on different banks; say Indian bank, axis bank, Indian overseas bank etc. In this case State bank has to go each bank for collecting amounts which is a bit difficult and time consuming process.
To simplify this process each bank will send a representative to a central place and exchange cheques drawn on each other This centralized place is called clearing house. Reserve bank of India is act as clearing house. SBI or some other banks acts as clearing house in cities where RBI’s office is not exists.
Suppose SBI brings 1000 cheques for Rs 50 Lacks drawn on axis bank and axis bank brings 500 cheques for Rs 45 lacks drawn on SBI. So axis bank should give 50 lacks to SBI and SBI should give 45 lacks to axis .instead of giving full amount consider net difference which is 5 lacks payable by axis bank to SBI account.
The settlement bank; that is RBI passes an entry by debiting axis bank and crediting SBI in their books. This means that Axis bank should give 5lacks to RBI for paying SBI. And RBI will settle this amount. This kind of settlement is “net settlement”.
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i have deposited cheque of rs 39000 to the branch sbi ozar [mig], nasik, maharshtra [ brach code - 1196] since 10 days [ 13/03/2010] how many days will take for clearing.bank officials says to me it will take take some time nearly 10-15 days.is it to late for me.
can u plz reply me as soon as possible.
THANK U
VAIBHAV DESHMUKH
[09404209993]
NASIK. MAHARSHTRA.
Hi VAIBHAV DESHMUKH
I Think you may have deposited an out station cheque payable at another city, out station cheque clearing takes time depends on distance of the payable branch up to two weeks.
Local cheque clearing takes maximum 3 days.
Sir,
My sister has been given cheque of RS 76426/- from KVG bank Hirekerur Karnataka. she has deposited it on 23/2/2010 in her SBI account Shimoga Karnataka. Till now she has not recieved the money (13/4/2010)
What may the reson, what are the steps to follow the money is meant for repayment of her education loan. please suggest/help us get the money.
please reply me on nagarajsrb@gmail.com
Normal case , your cheque would have credited within these longer period. Please follow the suggestion to sort it out.
1. Ask the cheque issuer whether amount is debited his/her account.
2. Go SBI Branch where the cheque was deposited along with deposit slip and ask what happened to the cheque.
3. If amount is debited to issuer account there may be a chance to credit the amount in wrong account.
4. Next possibility is cheque return intimation from bank might not have reached to you.
5. Check the pay in slip whether you have written correct account number.
Do the first two points immediately,you will get the solution, if not you can can get back to me.
I have deposited US bank cheque in SBH, what is the process of clearing and the time frame it takes.
Sir,
Please tell what would be the difference in the check processing in case I have deposited the outstation check in my account. Will my outstation check will physically move to the outstation bank branch.
Regards,
Suresh Maurya
how safe is the cheque?how much MINIMUM NOT MAXIMUM does it take for the money to credit in the account?eg: between city bank and deutsche bank(local cheque).
sudhir mishra
i have deposited cheque No.636815 of Rs. 4955/- to the branch sbi Ballabgarh, Faridabad (Harayana)[ brach code - 1157] since 4 days [ 7/06/2010] how many days will take for clearing. Bank officials says to me I cant tell you about your cheque.
can u plz reply me as soon as possible.
THANK U
Upendra kumar
Ballabgarh, faridabad (H.R.)
hi,
actually i openind a new account in SBH ON TUESDAY AND AT THAT EVENING ONLY I DEPOSITED THE CHEQUE BUT IN HOW MANY DAYS DOES THAT CHEQUE WILL CLEAR TODAY ALMOST TWO DAYS I ENQUIRER TODAY MORNING THEY TOLD NO CLEARED SO PLEASE SEND ME TO MY MAIL ID AND ALO I AM HAVING SOME DOUT ONE OF MY FRND NAME IS SIVAKANTH BUT HE GOT CHEQUE BY NAME SHIVAKANTH DOES THAT CHEQUE WILL CLEAR THE AMOUNT ?/????? PLEASE SEND TO EMAIL ID:SIVA1988KUMAR@LIVE.COM
Sir,
I HAVE CHEQUE OF SBI JABALPUR AND I HAVE SAVING ACCOUT IN SBI NAUPADA THANE BRANCH. BUT NOW I AM IN CUTTACK . CAN I SUBMIT CHEQUE AT SBI CUTTACK FOR CLEARANCE?
PLEASE SUGGEST ME
RAM CHET SINGH.
Yes you can . it will clear immediately as both cheque and your account belongs to same bank and SBI is in core banking system.
sivakumar ,You have not mentioned banks, if cheque is same bank you will get credit immediately, or if cheque is local and other bank cheque, it will take 2 days, if it is other bank out station cheque will take up to two weeks . In second case , if you are maintaining good relation with banker they will pass the cheque as it is not a big mistake ,however banker have every right to reject the cheque. it depends on banker decision
Hello,
I have an account in ICICI bank by name Sunil Jakkaraju Kumar. However my full name is Sunil Kumar Jakkaraju SivaKumar (J S Sunil Kumar)
I got cheque from LIC HFL as I sold my flat. Since my account name in LIC HFL is J S Sunil Kumar, the cheque was issue on the name J S Sunil Kumar. However the cheque had my ICICI Bank account number in it.
The cheque is of high value (> 5 lakhs) as it is for the sale of my flat.
When I went to deposit the cheque in my ICICI bank branch, the executive said that the cheque will not be honoured as my name in account is Sunil Jakkaraju Kumar.
However I showed them my passport having my full name and on their suggestion wrote the letter to branch manager to honour the cheque attaching the passport copy as proof while depositing the cheque.
My query is that will cheque be honored?
If it is not honoured what should be my next steps.
Thanks for your reply.
HI,
Please ignore my earlier post
If someone is bearer cheque, how does the bank check for the available balance in the drawer’s account before giving the money to the drawee.
Also, During the floating period, how is cheque kiting being handled now?
Aaryan
Dear Sir,
I m working in kerala as a telecom engineer.I have a Sbi account from kerala and i m using that account for my salary purpose.As my salary is coming from Head branch (dehli).This time they r sayin that they have already issued a cheque in my account on 9th august through ICICI bank.but i have not yet received that money.
please let me know wat could be the reason because i cannot enquired from here abt that cheque.
urgent reply will be appreciated.
Hi amber,
There are several possibilities. What kind of cheque they have deposited. was it a local clearing cheque or out station cheque?
if ICICI bank cheque is deposited from delhi to your kerala SBI account and it is a local clearing cheque ( cheque will be cleared within the city), no issue it will credited in two three days. if it is an out station cheque; will take time( normally up to two weeks) depends on location , banks etc.
or there are chances like.
1. Cheque may have returned. check your account if there is any returning charge debited.
2. Cheque may have lost in transits during clearing cycle. ask banker.
You had better ask cheque details , deposited bank branch & phone number from your employer and call Delhi SBI regarding the cheque
Thank You So much for ur reply.i think its a local clearing cheque because previously it used to get cleared within 3 days but this time its been a week.If i get that Sbi branch contact details wher that cheque has been deposited can i call them and ask them about that cheque no.?will they be providing the related informations through phone.?????
You can call them, it is their duty to respond your query, i did this and banker responded well. The next step is make sure that your employer deposited the cheque if possible get the deposit slip, then make a written complaint to the head office of SBI wAIT 10 TO 15 days.still your complaint is not redressed you can contact/give a written complaint to banking ombudsman. , click here for address. there is a complaint form in this link make use of it.
I had worked as an external teaching faculty for an educational institute, the owner of institute gave me a cheque for my fees as instructor, however that checque returned and bank also levied charge on me for the same, that started dispute between us and i stopped going to his institute for teaching students, i have incurred more than 5000 rs. for coming and going and travelling to another city also for teaching students, now I want to file a case against him for cheating.
Can any body tell me how can I file a case against him?what is the procedure for filing the case.?
sir
i got a cheque of 49800 rs of indian overseas bank . and i deposited that cheque to my nearest sbi there i have an account. i deposited on 20 th aug 10 friday morning and the manager told me that it was a local cheque nd it will clear in 2 days .ibut it is not clear yet.
sir please give an urgent reply
yours faithfully
nithee
Hi i have been issue a cheque of 12800 rupees from a company on my name and they have issued the cheque in name of “Jeewan Joshi” but in my account the name is Jeewan Chandra Joshi so my middle name is missing so can anyone let me know is the cheuque will be accepeted by the bank or not as my niddle name is missing in the cheque so could it be a problem.
Thanks
Jeewan
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