Understanding a bank’s policy can often feel like deciphering cryptic code. However, at Uttar Bihar Gramin Bank, we believe in clear and transparent communication with our customers. Let’s break down our Cheque Collection Policy in simple, everyday language, so you can grasp the essentials.
The Cheque Collection Policy is our commitment to provide you with the best service while maintaining transparency and fairness. It follows the guidelines set by the Reserve Bank of India (RBI) and ensures that the interests of small depositors like you are protected.
Table of Contents
What’s Covered:Our policy covers several key areas:
- Collection of Local and Outstation Cheques: This details how we handle cheques and other negotiable instruments, whether they’re local or from outside your region.
- Timeframes for Collection: It specifies how long it takes for us to process cheques and other instruments.
- Interest Payment: If there’s a delay in the collection process, you may be eligible for an interest payment.
- Dealing with Dishonoured Cheques: When a cheque bounces, this section explains how we handle it.
- Force Majeure: We’ve got you covered in case unforeseen events, like natural disasters or strikes, disrupt our services.
- Amendments and Modifications: We’re open to changes that can improve our services in the future.
Collection of Local and Outstation Cheques:
Local Cheques:
- We use the local clearing system for cheques and negotiable instruments that need to be processed within your region.
- Cheques deposited at your branch are cleared on the same day if submitted before the specified cutoff time.
- If you drop cheques in collection boxes within the branch premises, we process them on the same day.
- For cheques deposited after the cutoff time or outside the branch premises, they are processed in the next cycle.
Outstation Cheques:
- You can deposit outstation cheques without any refusal from us.
- For cheques drawn on other banks in your area, we will typically collect them through our own branches at that location.
- If we don’t have a branch in that area, we’ll send the cheque directly to the drawee bank or collect it through a Correspondent Bank.
- We use inter-branch arrangements for cheques drawn on our own branches in different locations.
- For certain customers, we offer immediate credit for outstation instruments at the specific request of the customer or according to a prior arrangement.
Timeframe for Collection:
- Cheques deposited within three hours before the clearing schedule are sent to the clearing house on the same day.
- We might adjust this timeframe to serve our customers better, depending on local clearing schedules.
- If your bank branch doesn’t have a clearing house, cheques from outstation branches will be treated as local cheques regarding the collection timeframe.
Interest Payment for Delayed Collection:
- If there’s a delay in the collection process, we’ll pay interest based on specific rates.
- This interest is paid without requiring you to make a formal claim.
- The rates vary depending on the length of the delay.
Dealing with Dishonoured Cheques:
- When a cheque bounces, the paying bank returns it according to clearing house rules.
- We share information about cheques over Rs.1 crore that are dishonoured with our Regional Offices.
- To encourage financial discipline, we have some policies regarding frequent dishonours:
- For cheques over Rs.1 crore, if your cheque is dishonoured four times in a year, we won’t issue new cheque books, and we may even consider closing your account.
- For cheques less than Rs.1 crore, if your cheque bounces five times, we’ll follow a similar process.
- These policies aim to ensure that our customers maintain financial discipline.
Force Majeure:We may not be able to compensate you for delayed credit due to events beyond our control, like natural disasters, strikes, or other unforeseen circumstances.
Amendments and Modifications:We’re committed to enhancing our services. So, we’ll regularly review and modify this policy to provide you with even better services.
This simplified guide to our Cheque Collection Policy should help you understand how we handle your cheques without getting lost in banking jargon. We’re here to serve you better, ensuring you have a clear understanding of how we work.
