Uttar Bihar Gramin Bank Cheque Collection Policy: A Customer-Friendly Guide

Cheques are still a trusted way to pay and get paid—especially for school fees, rent, business bills, or reimbursements. To keep things simple and predictable, Uttar Bihar Gramin Bank (UBGB) follows a clear Cheque Collection Policy aligned with RBI guidelines. Below is the same policy in plain language, so you know exactly what happens after you drop a cheque at the branch, a collection box, or with a Bank Mitra.

What this policy covers (in simple words)

• What we collect: Cheques and other negotiable instruments (local or outstation)
• How we collect: Local clearing, inter-branch arrangements, correspondent banks, or sending directly to the drawee bank
• How long it takes: Typical timelines for different types of cheques
• If there’s a delay: When and how interest is paid for delayed collection
• If a cheque bounces: What “dishonour” means, and when repeated bounces can lead to action
• Special situations: Force majeure (events beyond control)
• Policy changes: How and why we update the policy

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Local vs Outstation cheques (and how we handle them)

Local cheques

“Local” means cheques payable in the same clearing zone as your branch.

• Local clearing system: We present your cheque via the clearing house serving your branch.
• Same-day presentation: Cheques deposited at the counter before the branch cut-off time are presented the same day.
• Collection boxes (inside branch): Cheques dropped within the branch premises before the indicated time are also presented the same day.
• After cut-off / off-premises boxes: These are presented in the next clearing cycle.

Tip: If you need speed, deposit before the posted cut-off. Cut-off times are displayed at the branch and may vary by location.

Outstation cheques

“Outstation” means cheques payable in another clearing zone/city.

• Where we have a branch: We route the cheque through our own branch at the drawee location whenever possible.
• Where we don’t have a branch: We send directly to the drawee bank or use a correspondent bank for collection.
• Cheques drawn on our own branch (another city): Collected through inter-branch arrangements.
• Immediate credit: For select customers and on specific request/prior arrangement, we may allow immediate credit for outstation cheques (subject to policy and limits).

Heads-up: Outstation cheques typically take longer than local cheques. Your branch can advise a practical timeline based on the destination centre.

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Timeframes for collection (what to expect)

• Local cheques: Those deposited within three hours before the clearing schedule are normally sent to the clearing house the same day.
• Service-friendly adjustments: Branches may tweak internal cut-offs to match local clearing schedules and improve service.
• Branches without a local clearing house: Cheques received from outstation branches and payable locally are treated as local cheques for timing purposes.

Note: Actual credit to your account depends on when the paying bank settles funds in clearing.

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Interest for delayed collection (your protection)

If UBGB delays credit beyond the policy timelines, we will pay interest for the delay:

• Automatically: You do not need to submit a claim; the credit is proactive.
• Rate: As per the bank’s policy based on length of delay (your branch can quote the exact rate applicable at the time).

This ensures small depositors are not penalized because of avoidable procedural delays.

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Dishonoured (bounced) cheques—what happens

A cheque is “dishonoured” when the paying bank returns it unpaid (insufficient funds, signature mismatch, stop payment, etc.). Returns are processed as per clearing house rules.

• Monitoring large bounces: UBGB reports dishonours over ₹1 crore to Regional Offices for oversight.
• Encouraging discipline:
  • For cheques over ₹1 crore: 4 dishonours in a financial year may lead to stoppage of new cheque books and, in serious cases, account closure.
  • For cheques below ₹1 crore: 5 dishonours in a financial year may invite similar action.

These thresholds are designed to promote responsible issuance of cheques and protect recipients from repeated inconvenience.

Practical tip: If a cheque you issued is likely to be returned, inform the beneficiary early and avoid repeated presentations. If you’re depositing a cheque, keep the deposit slip/acknowledgment until completion.

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Force majeure (events beyond anyone’s control)

Sometimes service disruptions are unavoidable—natural disasters, strikes, widespread network outages, or other events may slow or halt clearing and interbank settlement. In such cases, delayed credit compensation may not apply, since the delay is not within the bank’s control. Once systems resume, we process pending items on priority.

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Transparent and evolving (policy updates)

Banking systems, RBI guidelines, and clearing arrangements evolve. UBGB reviews and updates this policy periodically to improve customer experience and remain fully compliant. Your branch displays key service standards and any important changes.

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Handy do’s and don’ts (to save time and avoid stress)

• Write clearly: Ensure date, amount (figures & words), and signature are correct and legible.
• Confirm payee name: If depositing a cheque payable to you, your account name should match the payee line.
• Avoid alterations: Overwriting on amount/date/signature can trigger returns.
• Deposit early: Beating the cut-off time can save you an entire day in clearing.
• Use the right drop box: Boxes inside the branch are cleared with the posted schedule; external boxes follow their own pick-up times.
• Keep proof: Retain the counterfoil/acknowledgement until funds are credited.
• Track with SMS/Passbook: Enable SMS alerts and update your passbook regularly.

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Quick FAQs

Q1. When will I get the money for a local cheque?
If deposited before cut-off, we present it the same day. Final credit depends on the paying bank’s settlement in clearing—usually next working day or as per local norms.

Q2. Will UBGB refuse an outstation cheque?
No. We accept outstation cheques and route them via our branch, a correspondent bank, or direct to the drawee bank.

Q3. Can I get immediate credit for an outstation cheque?
For certain customers and by arrangement, yes—subject to policy limits and our discretion.

Q4. What if my cheque bounces multiple times?
Frequent dishonours trigger discipline: >₹1 crore cheques—4 bounces in a year; <₹1 crore cheques—5 bounces in a year. We may stop cheque books and consider account closure.

Q5. Will I get interest if the bank delays credit?
Yes. If the delay is on our side (not force majeure), UBGB pays interest automatically as per policy.

Q6. What if there’s a flood/strike and clearing stops?
That’s force majeure. We resume processing once systems recover; compensation may not apply during the disruption.

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The bottom line

UBGB’s Cheque Collection Policy aims to be fast, fair, and transparent. Deposit before cut-off for speed, expect automatic interest if delays happen at our end, and remember that repeated cheque bounces can lead to restrictions. When in doubt, just ask your branch—they’ll share the local cut-offs, timelines, and the best way to get your cheque credited smoothly.