2.1 a) Speed Clearing:

Outstation cheques drawn on banks participating in speed clearing at specified locations will be collected and treated at par as if they were local cheques. All terms and conditions applicable for local clearing instruments will also apply to speed clearing.

2.2) Outstation Cheques:

Cheques drawn on other banks at outstation centres other than those covered under 2.1a above, will normally be collected through bank’s branches at those centres. Where the bank does not have a branch of its own, the instrument would be directly sent for collection to the drawee bank or collected through a correspondent bank. The bank would also use the National Clearing services offered by the Reserve Bank of India at centres where such collection services exist. Cheques drawn on bank’s own branches at outstation centres will be collected using the inter-branch arrangements in vogue. Branches which are connected through a centralized processing arrangement and are offering anywhere banking services to its customers will provide same day credit to its customers in respect of outstation instruments drawn on any of its branches in the CBS network.

2.3) Cheques payable in Foreign Countries:

Cheques payable at foreign centres where the bank has branch operations (or banking operations through a subsidiary, etc.) will be collected through that office. The services of correspondent banks will be utilized in country/centres where the correspondent has presence. Cheques drawn on foreign banks at centres where the bank or its correspondents do not have direct presence will be sent direct to the drawee bank with instructions to credit proceeds to the respective Nostro Account of the bank maintained with one of the correspondent banks.

2.4) Immediate Credit of Local / Outstation Cheques / Instruments:

Branches / extension counters of the bank will consider providing immediate credit for outstation cheques / instruments up to the aggregate value of Rs.15000 (Rupees fifteen thousand only) tendered for collection by individual account holders subject to satisfactory conduct of such accounts for a period of not less than six months. Immediate credit will be provided against such collection instruments at the specific request of the customer or as per prior arrangement. The facility of immediate credit would also be made available in respect of local cheques at centres where no formal clearing house exists.

The facility of immediate credit will be offered on Savings Bank / Current / Cash Credit Accounts of the customers. For extending this facility there will not be any separate stipulation of minimum balance in the account. Under this policy, prepaid instruments like Demand Drafts, Interest / Dividend warrants shall be treated on par with cheques. In the event of dishonor of cheque against which immediate credit was provided, interest shall be recoverable from the customer for the period the bank remained out of funds at the rate applicable for clean overdraft limits sanctioned for individual customers. For the purpose of this Policy, a satisfactorily conducted account shall be the one;

a) Opened at least six months earlier and complying with KYC norms.

b) Conduct of which has been satisfactory and bank has not noticed any irregular dealings.

c) Where no cheques / instruments for which immediate credit was afforded returned unpaid for financial reasons

d) Where the bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving immediate credit.

In respect of accounts not operated for more than 6 months, necessary usual safeguards shall be undertaken

The Bank shall levy normal collection charges and out of pocket expenses while providing immediate credit against outstation instruments tendered for collection. Exchange charges applicable for cheque purchase will not, however be charged. The facility of immediate credit would not be applicable to cheques collected under speed clearing arrangements

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