1. Introduction
Keeping in view the technological progress in payment and settlements systems and the qualitative changes in operational systems and processes that have been undertaken by a number of banks, the Reserve Bank of India had, with effect from 1st November 2004, withdrawn its earlier instructions to commercial banks on :

(i) Immediate Credit of local/outstation cheques,
(ii) Time Frame for Collection of Local/Outstation Instruments and
(iii) Interest Payment for Delayed Collection.

The withdrawal of these mandatory guidelines was expected to enable market forces of competition to come into play to improve efficiencies in collection of cheques and other instruments. This collection policy of the Bank is a reflection of our on-going efforts to provide better service to our customers and set higher standards for performance. The policy is based on principles of transparency and fairness in the treatment of customers. The bank is committed to increased uses of technology to provide quick collection services to its customers. This policy document covers the following aspects:

Collection of cheques (including Cheques purchased) and other instruments payable locally, at centers within India and abroad.
Our commitment regarding time norms for collection of instruments
Policy on payment of interest in cases where the bank fails to meet time norms for realization of proceeds of outstation instruments.
Our policy on dealing with collection instruments lost in transit.

2. Arrangements for Collection :

Local Cheques

All cheques and other Negotiable Instruments payable locally would be presented through the clearing system prevailing at the center. Cheques deposited at branch counters and in collection boxes within the branch premises before the specified cut-off time will be presented for clearing as far as possible on the same day. Cheques deposited after the cut-off time and in collection boxes outside the branch premises including off-site ATMs will be presented in the next available clearing cycle. As a policy, bank would give credit to the customer’s account on the same day clearing settlement takes place at that centre. Withdrawal of amounts so credited would be permitted as per the cheque return schedule of the clearing house. Wherever applicable, facility of high-value clearing (same day credit) will be extended to customers.

The respective branches will display the cut-off time for receipt of cheques to be sent in clearing on the same day in their premises. The cut-off time for collection of cheques from drop boxes installed at off-site ATM will be displayed on the face of the drop boxes. Accordingly, cut-off time for receipt of high value clearing and receipt of cheques for payment to Government accounts like Income Tax etc., will also be displayed in the branches. Bank branches situated at centers where no Clearing House exists, would present local cheques on drawee banks across the counter and it would be the bank’s endeavor to credit the proceeds at the earliest.