The Bank may consider providing upfront credit by purchasing the instrument, if the conduct of the account has been satisfactory in the past, for a charge at its sole discretion.

The various articles as detailed in the International Chamber of Commerce, Uniform rules for collection (ICC-522) will be applicable for collection of cheques.

a.) The Customer instructing the Bank to perform services shall be bound by and liable to indemnify the Bank against all obligations and responsibilities imposed by foreign laws and usages.

b) Customers depositing cheques drawn on foreign centers are expected to be aware of usage / practices and laws related to cheques collection prevailing in drawee countries.

c) The cheques sent for collection by the collecting Bank can be returned by the Banks located in any foreign country (after their presentation in clearing/collection) due to fraud / financial reasons. The fraudulent cheques can be returned by the Banks in Foreign countries at any time after their presentation.

i) In case of returned cheques, no protection is available to the collecting Bank. Since the Foreign Bank recovers the amount of returned cheques earlier credited into account of collecting Bank by debiting its nostro account, the collecting Bank will not be able to provide any compensation to the depositor for cheques returned on fraud / financial reasons.

ii) Further, the Bank has right to recover the proceeds of the cheques credited in depositor’s account (at the ruling exchange rate equivalent to foreign currency amount debited by foreign bank to the nostro account of the collecting Bank) along with the interest from the date of credit of proceeds till the date on which amount is recovered

2.4 Immediate Credit of Local / Outstation Cheques / Instruments :

Branches/extension counters of the bank will consider providing immediate credit for outstation cheques/ instruments up to the aggregate value of Rs. 15000/- tendered for collection by individual account holders subject to satisfactory conduct of such accounts for a period not less than 6 months. The credit given under this facility should not exceed Rs. 15000/- per customer at any given point of time. The facility of immediate credit would also be made available in respect of local cheques at centres where no formal clearing house exist.

The facility of immediate credit will be offered on Savings Bank / Current / Overdraft Accounts of the customers. For extending this facility there will not be any separate stipulation of minimum balance in the account.

Under this policy, prepaid instruments like Demand Drafts, Interest/Dividend warrants of other Banks shall be treated on par with cheques.

In the event of dishonour of cheque against which immediate credit was provided, interest shall be recoverable from the customer for the period the bank remained out of funds at the rate applicable for overdraft limits sanctioned for individual customers.

For the purpose of this Policy, a satisfactorily conducted account shall be the one :

a) Opened at least six months earlier and complying with KYC norms.

b) Conduct of which has been satisfactory and bank has not noticed any irregular dealings

c) Where no cheques/instruments for which immediate credit was afforded returned unpaid for financial reasons

d) Where the bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving immediate credit.

Bank shall levy normal collection charges and out of pocket expenses while providing immediate credit against outstation instruments tendered for collection. Exchange charges applicable for cheques purchase will not, however be charged.

The Branches will display the gist of the scheme of immediate credit of outstation cheques on their notice board for knowledge of the customers. This will also be displayed on Bank’s web-site.

2.5 Appointment of agents for collection of cheques

a) The Bank utilizing the services of another bank or other banks for the purpose of giving effect to the instructions of the customer, do so for the account and at the risk of such customer.

b) The Bank can appoint an agent for sending cheques for collection/for collection of cheques who shall be the agent of customers at the risk and responsibility of the customers. The cheques can be sent for collection by post or other manner also to another agent or drawee thereof on the risk and responsibility of the customers.

3. Time Frame for Collection of Local / Outstation Cheques / Instruments :

For local cheques presented in clearing credit will be afforded as on the date of settlement of funds in clearing and the account holder will be allowed to withdraw funds as per return clearing norms in vogue.

Cheques / Instruments presented in high value clearing (with the minimum value of Rs. 1 lac) shall be credited on the same day (applicable only in areas covered by high value / same day clearing).

For cheques and other instruments sent for collection to centres within the country, generally the following time norms shall be applied :

a) Cheques presented at any of the four major Metro Centres (New Delhi, Mumbai, Kolkata and Chennai) and payable at any of the other three centres : Maximum period of 7 days.

b) Metro Centres and State Capitals (other than those of North Eastern States and Sikkim) : Maximum period of 10 days.

c) In all other Centres : Maximum period of 14 days.

d) Cheques drawn on foreign countries : Such instruments are accepted for collection on the ‘best of efforts’ basis. Bank may enter into specific collection arrangement with its correspondent bank for speedy collection of such instrument. Bank would give credit to the party on credit of proceeds to the bank’s Nostro Account with the correspondent bank after taking into account hold periods as applicable to the countries concerned.

The above time norms are applicable irrespective of whether cheques/instruments are drawn on the bank’s own branches or branches of other banks.