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  • Category: Miscellaneous

    Why banks are taking fortnight to clear the local cheques. But they do levy service charge. ?

    The functions of public sector banks are increasingly becoming a laughing stock in the eyes of a common man who has the account and genuinely maintains it even without murmuring by paying service charges levied at their whims and fancies. I had issued high value cheques and that too for a government account and though information about the clearance desk has come, my account was not debited so far and that shows laxity either at the clearance level or the parent branch. In the melee I have lost fortnight interest ?
  • #629060
    If it is not debited from your account how you will lose interest for that. If it is not credited then only you will lose the interest I think. However these days online transactions are increasing. So the number of transactions through cheques are decreasing. As such definitely works should become faster. But people are becoming lazy and not doing the works with interest. So they are taking more time I think. As they are charging money from us for all transactions, the loss to the customer because of their delay should be compensated by the bank or the individual who is responsible for the delay.Then only discipline will come in the system. But my experience with HDFC and ICICI is something different.
    drrao
    always confident

  • #629063
    Where I am supposed to invest, the amount was no credited either there nor debited from my account .
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #629074
    I concur with the thread author in one core point from this thread. While there is speeding up in various areas in banking transactions, cheque clearance has become slower and more delayed than earlier, especially in the medium and small towns surrounding a big city.

    I have many instances of such delay involving large amounts whereby I lost interest of a few thousands rupees. If any immediate or intervening holidays happen, we had it!.

    The physical sending of cheques to the concerned bank is now almost withdrawn. Cheque truncation-whereby the scanned image of the cheque is sentto the drawee bank is now in vogue. However to save cost banks do not keep the truncating machine in every branch. So what happens is, when a cheque is given by a customer , the cheque is physically sent to the link office or to the nearest office where the truncation machine is available. It usually happens the next day only. Then, in that link ofice the cheque truncation is done and recorded. Then it is pooled i the clearing dealing office for that area and transmitted through accounting process to the drawee bank. So when we submit a cheque on friday before second saturday, take it from me, the process starts only from Monday. The cheque may get cleared on Wednesday or Thursday and gets cleared to the beneficiary , may be only by next friday .

    When the beneficiary is a government department, again more delay happens as, the govt office has to record it and send it to the bank, which itself may take a couple of days.

    In the days of speedier happenings, cheque clearing is, at east in many places slower than snail mail. It may be a hidden indirect pressure meant to discourage cheque transactions and go for realtime digital transactions.

  • #629081
    CTS, cheque truncation system was introduced with the very idea that it would speed up the clearance of cheque. Instead of physically sending the cheque from the collecting bank/branch to the drawee branch, the image would be transmitted.

    In the author's case, it would be a combination of timing, the delays at the human(staff) level before the CTS was initiated and the amount being debited.

    The financial experts had predicted that the volume of cheque transactions would drop down steadily but in India, I think it would take a long time for us to move from a cheque and DD way to a cheque less transaction. The rest would be as replied by Mr.Venkiteswaran sir.


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