Surat banks cheer same day cheque clearance

As per the recommendations of the "Working Group on improvements in monitoring of Clearing Systems", the Surat Bankers Clearing House (SBCH) has decided to start same day presentation and returns of clearing from October 18.

"A meeting of our standing committee was held on September 30, during which it was unanimously decided to account for presentation and return of the clearing on the same day. The move will benefit the banks as well as the customers," SBCH president Narahari Rao, told Business Standard.

"From October 18 onwards, the floppy based return clearing will have to reach our Magnetic Ink Character Recognition (MICR) Centre, located at Meridian Tower, Udhna Darwaza, latest by 2:15 pm. The Non-MICR cheques will continue to be presented on Wednesday along with the MICR presentation (not with returns).

The returns of these non-MICR cheques will have to be presented along with MICR returns on Thursday, latest by 2:15 pm," Rao said.

"In order to faciliate the customers to deposit cheques late, the time for presentation has been delayed by 30 minutes. Individual member banks can contact our MICR Centre to know their presentation timngs. We have advised the member banks to maintain timings of return clearing / MICR strictly to avoid any inconvenience," Rao added.

The bankers of Surat have welcomed the same day presentation and return system.

Setu Madhavan, Chairman, The Udhna Citizens Co-operative Bank Ltd., said, "The move will benefit both the customers as well as the banks. At present, amount is credited to a customer's account two days after depositing the cheque. From October 18 onwards, the amount will be credited to the customers within 24 hours."

"As far as banks are concerned, the same day presentation and return system will stop the money laundering system. Unless any bank has sufficient funds, it will not be able to survive. There will be greater transparency and the money funding will become more clearer, which would bring in better financial discipline," Madhavan said.

Gokul Bakshi, chairman, Prime Co-operative Bank Ltd also welcomed the decision.

"Surat is an industrial city and the daily clearing is in excess of Rs 100 crore. Due to the present system of clearing, this money is blocked for two days. The business community has been craving for a faster clearing procedure since a long time, and we are glad that it is being implemented from October 18 onwards," Bakshi said.

"The customers will certainly be benefited and so will be the banks, as the same day presentation and return of the cheques, will get rid of operational problems such as against clearing and others.

"The new system will also help curb the practice of cheque discounting. The system is welcome, but in my opinion, the clearing house should take steps to further speed up the clearing process," he added.