Industry welcomes high value cheque clearing

The Surat Bankers Clearing House's (SBCH) decision to restart high value clearing from later in the month, has been welcomed by the trade & industry of Surat.

"A meeting of the standing committee of SBCH was held on Monday, during which it was decided to restart high value clearing from July 18 onwards," said Narahari Rao president, SBCH.

Rao said once the system was implemented instruments worth Rs. 1 lakh or more, would be credited in the customer's account on the same day, if presented before 12:00 pm.

At present, the amount is credited the next day, but this would be done in a matter of hours when the system comes into force. The returns of high value cheques would take place the same day, along with the return of other cheques, Rao said.

"Under normal circumstances, no member bank, with the exception of single branch co-operative banks, are permitted to be out of high value clearing. However, the SBCH standing committee decided that selection of branches of a bank, that would participate in the high value clearing, be left to the individual banks," he said.

"In view of this, we have written to all our member and sub-member banks, and asked them to submit the list of their participating branches with us latest by July 9," Rao added.

The trade & industry has welcomed the decision. "The decision to restart the high value clearing is a very good one. Since the money would be credited in the bank account the same day, the businessmen would be able utilise their money in a better manner, and hence we welcome it," said Dilip Chasmawala, president, Southern Gujarat Chamber of Commerce & Industry president.

"The textile industry would be highly benefited by the introduction of the same day clearing of high value cheques, as it would facilitate faster rotation of money," said Devkishan Manghani, spokesman of Federation of Surat Textile Traders Association.