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Cheque Collection Policy

This policy outlines the general rules and procedures for Collection of Local, Outstation and Foreign Currency Cheques, at Chinatrust Commercial Bank, India branches.

CTCB is a sub-member of Standard Chartered Bank (SCB) and all the normal clearing and outstation cheques are being routed through SCB. We are however RTGS / NEFT enabled and all inter-bank transactions can only be routed through RTGS, RBI Mumbai.

Local Clearing:
Cheques received from customers payable at New Delhi and Chennai are presented in normal clearing and the credit to the account is provided on realization. All cheques and other negotiable instruments payable locally would be presented through the New Delhi / Chennai clearing system. Cheques deposited at branch counters within the branch premises before the specified cut off time will be presented for clearing on the same day. The applicable cut off timings is displayed on the branch Notice Board and bank website for the benefit of customers. Cheques deposited after the cut off time will be presented in the next clearing cycle. Credit is provided to the customer account on the same day or maximum by the subsequent working day, from the time clearing settlement takes place.

Outstation Cheque clearing: 
These are cheques that are drawn on other banks and payable at any location within India, outside New Delhi. The instrument would be directly sent for collection by CTCB to the drawee bank or collected through a correspondent bank. Credit is provided to customer only on realization of proceeds from the drawee bank. Collection charges are applicable as per Traiff of the bank.

Foreign Currency Cheque Collection:
These are cheques which are drawn in foreign currency and payable overseas. These cheques are sent on collection through the bank’s overseas correspondent banks and the funds are credited to customer only after realization of proceeds. Collection charges are applicable as per Tariff of the bank.

Foreign currency cheque/instrument sent for collection to the Payee bank through Correspondent Bank located outside India can be returned by the Payee bank even after crediting the proceeds to depositor’s account after cooling period, for whatsoever reason including but not limited to "insufficient funds", "account closed", fraudulent cheque" etc as per prevailing clearing rules / laws related to cheque collection in drawee countries. In case of such cheque returns, the Payee bank recovers the amount of returned cheque, thus credited earlier, by debiting the CTCB’s Nostro account. CTCB has the right to debit the depositor’s account to the extent of returned cheque amount immediately (at the prevailing exchange rate) along with charges and interest at overdue rate from the date of credit of proceeds till the date on which amount is recovered from the depositor.

Indicative Time Period for Realisation and Credit of Cheque Collection proceeds:

Clearing TypeDescriptionIndicative Period for Realisation of Funds
Local Cheques Cheques Drawn on Delhi/NCR & Chennai 2 working days
Outstation Cheques Cheques drawn on State Capitals 7 working days
  Cheques payable at Major Cities 10 working days
  Other locations 14 working days
Foreign Currency Cheques Cheques drawan in USD/GBP/EUR/JPY and payable in respective countries and territories 30 working days

Cut-Off Timings for receipt of Cheques for Collection at Bank Counters:

Local Clearing Cheques:  
New Delhi      Weekdays - 03:30 pm
Saturdays -  12:00 pm
Sriperumbudur (Chennai) :      Weekdays - 12:30 pm
Saturdays -  12:00 pm

Local cheques for clearing deposited within the above cut-off timings will be processed by the bank for Outward Clearing on the same day. Cheques deposited post the cut-off timings will be processed for Clearing on the next working day.

Outstation Cheques and Foreign Currency Cheques:
Outstation Cheques and Foreign Currency Cheques are processed are mailed to the Correspondent Banks within 24 hours of receipt at the counter.

Immediate Credit of Outstation Cheques:
CTCB, New Delhi Branch being sub-clearing member of Standard Chartered Bank (SCB) presently do not provide such facility to customers.
Compensation Policy - Payment of Interest for Delayed Collection

As part of the compensation policy, interest will be paid to the customer on the amount of the collection instrument in case there is delay in giving credit beyond the time period mentioned above. The interest shall be paid without any demand from customers.

  • Saving Bank rate for the period of delay beyond stipulated time for collection of  outstation cheques.
  • Where such delay is beyond 14 days interest will be paid at the rate applicable to for term deposit for the respective period.
  • In case of extraordinary delay, i.e. delay exceeding 90 days interest will be paid at the rate of 2% above the corresponding Term Deposit rate.

The bank will compensate the customer in respect of instrument lost in transit in the following way:

  • In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection, interest will be paid for the period exceeding the stipulated collection period at the rates specified above.
  • In addition, bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof.
  • The bank would also compensate the customer for any reasonable charges (upto Rs Five Hundred) that he/she incurs in getting duplicate cheque / instrument upon production of receipt, in the event the instrument is to be obtained from a bank / institution that would charge a fee for issue of duplicate instrument.

Dishonor of Instruments:
In case a cheque accepted for collection is returned unpaid, the bank will immediately debit the value of the cheque to customer account. As per various arrangements with the customer, bank shall recover interest for the period wherein bank was out of funds and / or per instrument rate which is applicable to customer as return charges.

The bank will hand over or dispatch the return cheque on the basis of the arrangement with the customer along with return memo and return statement containing the transaction level details within two working days from the date of debit.

Force Majeure:
The bank will not be liable to compensate customers for delayed credit on account of some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc beyond the control of the bank which may prevent it from performing its obligations within the specified service delivery parameters.

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