FAQs on Cheque Collection Policy

1. When was the first chq collection policy formulated in SBI? 2005 and it is reviewed annually as per RBI guidelines 2. Expand CTS? Cheque Truncation System 3. Where and when from CTS has been implemented? New Delhi : from July 2009 4. When from it is proposed introduced to all our Branches? From September 2012. 5. What is transaction code for different Accounts? Savings: 10 & 31(MCC) Current :11 & 29(MCC) Cash Credit: 13 & 30(MCC) 6. What is the recent change regarding validity period? Reduction of validity of cheque /draft /pay order/Bankers cheque from 6 months to 3 months. 7. What are the cheques can be presented through clearing? All cheques and other Negotiable Instruments, payable locally in clearing, would be presented through the clearing system prevailing at the centre. 8. Is it necessary to put the clearing time on the Drop Box? Yes. All the drop boxes shall indicate clearly the time upto which cheques dropped in the drop boxes would be sent for clearing on the same day? 9. What is the limit for immediate credit? Branches will, on their own accord, afford immediate credit of outstation cheques of other banks up to and inclusive of Rs.30,000/- tendered for collection by their customers 10. What are the criteria to give immediate credit? i) Opened at least six months earlier and is fully complying with the KYC documentation requirements. ii) Is neither dormant nor inoperative. iii) Where branch has not noticed any irregular dealings/ suspicious transactions in the last 6 months. iv) Where the branch has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned unpaid, after giving credit. v) Where no adverse features attached to the account/account holders has been brought to the notice of the Bank. vi) Where no cheques/ instruments for which immediate credit was afforded returned unpaid for financial reason. 11. Is there is any charges for local clearing cheques? No charges will be levied for local collection of cheques/instruments which are collected through the normal clearing process. 12. What is the maximum time limit for collection of outstation cheques? Max 14 days. Where the 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, delays exceeding 90 days interest will be paid at the rate of 2% above the corresponding term deposit rate. 13. Minimum amount of interest for delay in collection payable to customer? Such interest shall be payable with a minimum of Rs. 20/- (Rupees twenty only) even if the interest calculated works out to less than Rs. 20/-.

Ms Pratibha Pareek, Relationship Manager - HNI, State Bank of India, Financial Planning & Wealth Management, 4th Floor, Sky Star Building, Sevoke Road, Siliguri, West Bengal (pratibha.pareek@sbi.co.in)