2.5) Purchase of local/outstation cheques:

The Bank may, at its discretion, purchase local/outstation cheque tendered for collection at the specific request of the customer or as per prior arrangement. Besides satisfactory conduct of account, the standing of the drawer of the cheque will also be a factor considered while purchasing the cheque.However, existing usual safeguards in respect of purchasing local cheques and Discretionary powers with them to adhered.

2.6) Collection of Account Payee Cheque- Prohibition on Crediting Proceeds to Third Party Account:

The bank shall strictly adhere to the directions and guidelines issued by Resreve Bank of India from time to time.

3) Time Frame for Collection of Local / Outstation Cheques / Instruments:

For local cheques presented in clearing credit will be afforded as on the date of settlement of funds in clearing and the account holder will be allowed to withdraw funds as per return clearing norms in vogue at that centre..

For cheques and other instruments sent for collection to centres within the country the following time norms shall be applied

a) Cheques presented at any of the four major Metro Centres (New Delhi, Mumbai, Kolkata and Chennai) and payable at any of the other three centres : Maximum period of 7 days.

b) Metro Centres and State Capitals (other than those of North Eastern States and Sikkim): Maximum period of 10 days

c)In all other Centres : Maximum period of 14 days.

d) Cheques drawn on foreign countries: Such instruments are accepted for collection on the ‘best of efforts’ basis.The bank is committed to ensuring that instruments drawn in foreign currencies and payable outside India are collected in the quickest and most efficient manner. Towards this the Bank may enter into specific collection arrangements with its correspondent banks in those countries for speedy collection of such instrument(s). Bank would give credit to the party upon realization credit of proceeds into the bank’s Nostro Account with the correspondent bank after taking into account cooling periods as applicable to the countries concerned. Country/location specific times norms wherever stipulated will be specified for foreign currency instruments and made known to the customers at the point in time of while accepting instruments for collection.

The above time norms are applicable irrespective of whether cheques/instruments are drawn on the bank’s own branches or branches of other banks

Whenever cheques/ instruments are dishonoured, the same will be delivered to the customers with the return memo submitted by the drawee branch within 48 hours of return on proper acquittance. In the case of outstation cheques also the same procedure will be adopted