What happens if there are delays in cheque clearing?
Local Cheques Banks are required to give credit/debit for local cheques on the same day or at the most the next day of their presentation in clearing. After closure of the relative return clearing, you can withdraw the money on the same day or maximum within an hour of commencement of business on the next working day. Outstation Cheques Maximum timeframe for collection of cheques drawn on state capitals/major cities/other locations are 7/10/14 days respectively. If there is any delay in collection beyond this period, you are entitled to interest at the rate specified in the Cheque Collection Policy of the bank. In case the rate is not specified in the Cheque Collection Policy, you are entitled to receive interest rate on Fixed Deposits for the corresponding maturity. Banks’ cheque collection policy also indicates the limit up to which outstation cheques are given immediate credit.
