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  • Category: Miscellaneous

    How come during holidays when banks are closed, post dated cheques get cleared

    Well I purchased the vehicle on loan and issued cheques for post payment on every 5th of every month and this time 5th being Ganesh Chathurthi, I thought the cheque would come for clearance on 6th. But I got the message from my bank that the issued cheque got cleared and the amount debited from my account. What I am wondering that how it is possible to get the cheque cleared when the banks are not opened?. May I request the learned members of this site to give information on this ?
  • #577954
    Nowadays, cheques are cleared through Cheque Truncation System (CTS) where no physical movement of cheques is involved and only an electronic image of the cheque is sent along with the relevant key information. The image is transmitted to the central processing location or clearing house for onward transmission to the paying bank i.e. destination or drawee bank. The clearing house processes the data, arrives at the settlement figure and routes the images and requisite data to the drawee banks.

    Earlier cheques were processed through 66 MICR Cheque Processing locations, but presently in the new system, three grids located at New Delhi, Mumbai and Chennai process all TCS based cheques. The Hyderabad region is looked after by Chennai grid.

    Since the 5th September was a bank holiday in Hyderabad, the author must have submitted his cheque prior to September 5th. I think the new technology presently being used in the cheque processing/clearing made the difference.

    Let us encourage each other in sharing knowledge.

  • #577987
    Yes I gave post dated cheques to the Finance company and who shall deposit the same on every 5th for payment.
    K Mohan
    I consider myself as the learner everyday

  • #577988
    In such a case it appears that since they were aware of the holiday on 05.09.2016, they took action in such a manner that the cheque was cleared in time.
    Let us encourage each other in sharing knowledge.

  • #577998
    A cheque can be encashed only on or after the date on the cheque. A cheque cannot be encashed before the date of the cheque.

    However, in cases of the EMI cheques, it need not be the place of the customer where the cheque is presented for encashment. The same is done at one or more focal or link points of the lender organisation or its partners and franchisees or agencies for that work.
    As such the cheque in question would have been presented in a place where there was no bank holiday on 5 th.

    As banks are now under total automation and core banking the account can be accessed from another centre even on holidays.

    Let us keep faith on ourselves and work sincerely, not leave everything to fate.

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