CHEQUE COLLECTION POLICY

Cheque Collection Policy (Mar 2024) Page 1

 CHEQUE COLLECTION POLICY

Introduction

The Cheque Collection Policy is a reflection of Bank’s on-going efforts to provide better service
to customers and set higher standards of performance. The policy is based on principles of
transparency and fairness. Bank is committed to increase use of technology to provide quick
collection services and convenience to its customers. The policy document covers the following
aspects:

Aspects of Cheque Collection Policy

 Collection of cheques and other instruments payable locally at centres within India and
abroad.
 Outstation Cheques
 Time norms for collection of instruments
 Payment of interest in cases where the Bank fails to meet time norms for realization of
proceeds of outstation instruments
 Dealing with collection instruments lost in transit

1. Arrangements for collection

A. Local Cheques -

a. 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 on the same day. Cheques deposited
after the cut-off time in Cheque Deposit Kiosks will be presented in the next clearing
cycle. As a policy, the bank would give credit to the customer account on the same
day on which the final clearing settlement takes place or at the most the next
working day of their presentation in clearing. Withdrawal of amounts so credited
would be permitted as per the cheque return schedule of the clearing house.

b. To enhance the efficiency of paper based clearing system, the Cheque Truncation
System (CTS) was implemented in the National Capital Region (NCR). Since July
2008, all the member banks of the New Delhi Bankers’ Clearing House are
participating in CTS. CTS was subsequently implemented at Chennai and Mumbai
in a grid model where various states/cities under the respective regions participate
through the grid. RBI has initiated the process of merging all 3 Grids into National
Grid and merger was completed in October-2023. Accordingly, the pan India CTS
operations is now being handled through National Grid

c. As per RBI communication no. RBI/2021-21/107 DPSS.CO.RPPD.No.SUO

21102/04.07.005/2021-21 dated March 15, 2021, Banks are instructed to extend
Cheque Truncation System (CTS) across all bank branches in the country by
September 30, 2021. Banks are free to adopt a model of their choice, like deploying

Cheque Collection Policy (Mar 2024) Page 2

 suitable infrastructure in every branch or following a hub and spoke model etc. and
concerned Banks shall coordinate with respective Regional office of RBI to
operationalize this.

d. With the introduction of imaging and truncation of cheques, the physical movement
of instruments have been stopped and the electronic movement of images and
data of cheques would speed up the process of settlements and ultimately alter the
clearing cycles. Grid clearing would ensure erasing of boundaries and eliminating
the process of intercity clearing, thus enabling the realization of cheques across
cities along with the local cheques.

e. The benefits of CTS clearing are summarized below :

 Faster clearing cycle
 Better reconciliation/verification process
 Better Customer Service. Enhanced Customer Window
 T+0 for Local and intercity clearing cheques
 The jurisdiction of Clearing House can be extended to the entire country – No
geographical dependence
 Minimizes transaction cost
 Reduces operational risk by securing the transmission route
 Grid clearing enables centralization of CTS activities bringing in economies of
scale and cost effectiveness

f. Timing for acceptance - Cheques would be accepted during the business hours of
the branch across the counter as well as in the cheque drop box. The
acknowledgement should be given to the customer where the cheque is deposited
across the counter. Alternately, cheques can be deposited at Cheque Deposit
Kiosks (available at select locations) round-the-clock.

g. Collection timings for local cheques drawn on other banks (local clearing) - The cut-
off time for sending cheques for collection would be worked out for each
location/branch based on cut-off time afforded by clearing house at each location.
The cut-off timings would be displayed at branches/drop boxes for customers.
For local cheques, the timelines for local clearing will apply. The account holder is
allowed to withdraw funds after the cut-off time as per return clearing norms in
vogue at the center.
Collection timings for local cheques drawn on own branches of bank (Transfer
cheques)

Cheques deposited across the Same day (available only on working days)
counter and in branch drop box

B. Outstation Cheques

a. Cheques drawn on other banks at outstation centers will normally be collected

through bank’s branches at those centers. Where the bank does not have a branch
of its own, the instrument would be directly sent for collection to the drawee bank
or collected through a correspondent bank.

b. Cheques drawn on Bank’s own branches at outstation centers will be collected

using the inter-branch arrangements in vogue. As a part of the anywhere banking
services of the bank, customers will be provided same day credit for cheques drawn

Cheque Collection Policy (Mar 2024) Page 3

 on the Bank’s own branches subject to limits/charges as prescribed by the Bank
from time to time.

c. The definition of outstation cheques excludes demand drafts, banker’s cheques,

interest warrants and dividend warrants drawn on the Bank itself.

C. Special Clearing conducted by RBI

a. To facilitate accounting of all the Government transactions for the Financial Year,
RBI conducts Special Clearing into Central & State Government Accounts on the
last date of every Financial Year, with the same day return clearing.
b. Circular is issued by RBI, directing all the members banks to facilitate accounting of
all the Government transactions for the current financial year.
c. It is mandatory for all the member banks to participate in Special Clearing,
d. For special clearing for Government cheques, single session is conducted by NPCI
after the regular session timings.

D. Cheques Payable in Foreign Countries - Foreign currency cheques would be

accepted during business hours of the Bank branch.

a. No immediate credit of foreign currency cheques shall be given in view of the

greatly enhanced risk in such instruments. For low value cheques, the customer may
approach the account holding branch requesting for a waiver of the cooling period
(if any) to avail of the funds quickly.

b. Foreign currency cheques payable at foreign centers will be collected using

services of correspondent banks. Cheques drawn on foreign banks at centers where
the Bank or its correspondents do not have direct presence will be sent directly to
the drawee bank with instructions to credit proceeds to the respective Nostro
Account of Axis Bank maintained with one of the correspondent banks.

c. The cheque collection would take place within following parameters:

d. The mode of collection for foreign currency cheques / instruments would depend
on the currency, drawee location, the amount of the instrument and the same
would be informed to the customer.

e. At present, Bank avails 'Final Credit Service' for USD denominated

cheques/instruments from our Correspondent Bank in USA under which final credit is
received (without recourse). Credit for the foreign currency cheque is received in
the Nostro Account by the 24th working day and the customer’s account is credited
on the next working day with the value date of the Nostro credit.

f. Bank also avails ‘Cash Letter Scheme’ from our Correspondent Banks for foreign
currency cheques/instruments denominated in applicable currencies (as per
arrangement with partner bank from time to time). Correspondent Banks provide
provisional credit related to the instruments lodged under this scheme to the Bank’s
Nostro account on the condition that the Correspondent Bank can debit the Nostro
account on receipt of any cheque return subsequent to extending such provisional
credit. To safeguard against the risk of utilizing the funds which could subsequently
be debited from the Nostro account, the Bank retains the received credit in Nostro
accounts for certain cooling period as applicable to the countries concerned

Cheque Collection Policy (Mar 2024) Page 4

 (ranging from 12 to 18 days, as governed by local regulations) prior to crediting the
customer’s account.

g. The facilities of ‘Final Credit Service’ and ‘Cash Letter Scheme’ as detailed above
are subject to provision of the same by Correspondent Banks abroad and, as such,
are liable to be withdrawn or extended to other currencies or geographies. Further,
the Bank also may, at its own discretion, decide to withdraw or extend these facilities
or currencies/geographies/customer segments allowed under these facilities based
on various factors like volume of cheques received, cost of providing the service
and any other business/compliance/risk factors.

h. Foreign currency cheques that cannot be lodged under ‘Final Credit Service’ or
‘Cash Letter Scheme’ will be attempted to be sent directly to the drawee bank with
instructions to credit proceeds to the respective Nostro Account of Axis Bank
maintained with one of the correspondent banks. Such cheques are sent under
direct collection only if the drawee bank has a centralized facility of cheque
collection. For cheques sent on direct collection, there is no specific time frame
committed to the customer for receiving credit into the account. Similarly, for
cheques sent for direct collection, apart from the Bank’s applicable cheque
collection charges, there may be further deductions from the proceeds of the
cheque by the drawee bank and correspondent bank, the quantum of which
cannot be ascertained at the time of lodging the cheque. The customer’s account
is credited on the next working day of receipt of funds in the Bank’s Nostro account
held with a correspondent bank.

i. The credit entry to the customer’s account would be value dated based on the
value date of credit of funds in the Nostro Account of the Bank.

j. The Exchange Rate (Telegraphic Transfer Buying Rate) prevailing as on the date of
application of fund and credit to customer account will be applied.

k. In case of return of cheques, the debit entry in the customer’s account would be
value dated based on the value date of debit of funds in the Nostro Account of the
Bank. The exchange rate risk in such instances will be borne by the customer.

l. The charges applicable would depend on the mode of collection under which the
cheque / instrument is sent for collection and as mentioned in the Bank’s Schedule
of Charges.

m. For foreign currency cheques sent on collection, correspondent bank charges and
courier charges as incurred will be additionally levied, wherever applicable.

E. Compensation for delayed credit

a. For cheques / instruments sent on collection basis, the Bank will value date the
collection once the proceeds have been credited to the Nostro Account of the
Bank with its correspondent bank.

b. In case of delay beyond the date when the amount is due for credit, compensation
is payable for any adverse movement of exchange rate.

Cheque Collection Policy (Mar 2024) Page 5

 c. The compensation on account of delay in collection of instruments in foreign
currency would be paid in Indian Rupees as per the compensation mentioned
above for the period calculated from two working days after the date when the
amount is due for credit up to the actual date of credit to the customer’s account.
For the sake of clarity, the day when the amount is due for credit is calculated as
below:

 Cheques/Instruments lodged under ‘Final Credit Service’ or sent for direct

collection from the drawee bank: The working day in India which
immediately follows the value date of the credit in the Nostro account
pertaining to the foreign currency cheque.

 Cheques/Instruments lodged under ‘Cash Letter Scheme’: The working day

in India immediately following the completion of the applicable cooling
period for the foreign currency cheque.

F. Immediate Credit of local/outstation/foreign currency cheques/instruments

a. No immediate credit of local cheques would be given in view of Bank’s efficient

clearing procedures, which ensure that delays do not occur in realization of
proceeds of the cheques. At centers where no clearing house exists, cheques will
be presented across the counter and the proceeds will be credited at the earliest.

b. Branches / extension counters of the Bank would grant immediate credit for
outstation cheques / instruments drawn on Axis Bank centers up to the aggregate
value of Rs.15,000/- (maximum limit outstanding per account at any one point of
time) tendered for collection of individual account holders subject to satisfactory
conduct of such accounts for a period not less than 6 months.

c. Immediate credit will be provided at the sole discretion of the Branch Head after
carefully verifying the satisfactory conduct of the account, creditworthiness of the
customer and the genuineness of the need of the customer.

d. The facility will be offered to savings bank/current/cash credit accounts of the

customers.

e. Under this policy, prepaid instruments like demand drafts, interest/dividend warrants
should be treated on par with cheques.

f. Rs. 250/- will be charged on each such case as a flat fee over and above the normal
collection charges.

g. For the purpose of this policy, a satisfactorily conducted account is one which will
fulfill all the following criteria:
 Opened at least six months earlier and complying with KYC norms.
 Conduct of which has been satisfactory and bank has not noticed any irregular
dealings.
 Where no cheques / instruments for which immediate credit was afforded
returned unpaid for financial reasons.
 Where the Bank has not experienced any difficulty in recovery of any amount
advanced in the past including cheques returned after giving immediate credit.

Cheque Collection Policy (Mar 2024) Page 6

  Maintenance of Average Quarterly Balance (AQB) stipulation for at least 2
preceding quarters.

h. Immediate credit would also be subject to the following criteria:

 The account should be in Indian Rupees.
 The cheque / DD should be drawn on a scheduled commercial bank, payable
in India (excluding a co-operative bank).
 The facility shall be extended to the customer at his / her base branch only.
 Cheques shall not be post-dated / out of date / nearing out of date (to avoid
risk of return in clearing). The cheques must be at least 14 working days from the
date of expiry of the cheque.
 The account shall not be ‘inoperative’.
 The amount of immediate credit, whether for a single or multiple cheques / DDs,
shall not exceed Rs. 15,000/- in an eligible account, at any point in time.
 There should be no partial immediate credit of a cheque / DD.
 The cheque shall not be the customer’s own cheque from another account i.e.
not self-drawn cheque.
 The facility of immediate credit would not be applicable to cheques collected
under speed clearing arrangements.
 The policy of immediate credit would be reviewed annually considering the
amount of losses, frauds and customer issues.

i. No immediate credit of foreign currency cheques shall be given in view of the

greatly enhanced risk in such instruments. For low value cheques, the customer may
approach the account holding branch requesting for a waiver of the cooling period
(if any) to avail of the funds quickly.

j. Charging of interest on cheques returned unpaid where Instant Credit was given -
In the event the cheque is returned unpaid, the value of the cheque will be
immediately debited to the account. Interest at the Bank’s Prime Lending Rate (PLR)
will be charged from the date of credit of the cheque till the date on which the
customer makes good the amount, in case of insufficient balance in the account
on the date of return of the cheque. Cheque return charges applicable will be
levied in such cases.

G. Purchase of local/outstation cheques

Bank will at its discretion, purchase local/outstation cheque tendered for collection
as per prior arrangement. Besides satisfactory conduct of the account, the standing
of the drawer of the cheque will also be a factor considered while purchasing the
cheque. The facility of purchase of outstation cheque will not be applicable to
cheques collected under speed clearing arrangements.

H. Cheques returned unpaid by the payee bank

a. In the event of a cheque presented in local / CTS clearing or sent for collection
being returned unpaid, the instrument along with an advice providing reasons for
return would be dispatched to the account holder at his / her mailing address
recorded with the Bank. The instrument may also be handed over to the account
holder or to his/her representative with the consent of the account holder. Charges
applicable as per the Bank’s Schedule of Charges will be levied.

Cheque Collection Policy (Mar 2024) Page 7

 b. Cheque return charges would be levied only in cases where the customer is at fault
and is responsible for such returns. The illustrative list of reasons for returns, where the
customers are not at fault is attached as Annexure-I.

c. Cheques that need to be re-presented without any recourse to the payee, shall be
made to present in the immediate next presentation clearing not later than 24 hours
(excluding holidays) with due notification to the customers of such re-presentation
through SMS alert, email, etc.

d. For foreign currency cheques returned unpaid, the applicable return charges by the
correspondent bank, courier charges and any other applicable charges would be
debited from the account in which the cheque has been deposited along with the
value of the instrument, if already deposited.

e. 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. 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.

f. 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.

g. In case of such 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
would not be able to provide any compensation to the depositor for cheques
returned on fraud / financial reasons

h. Further, the Bank has the right to recover the proceeds of the cheques credited in
the 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. For foreign currency instruments kindly refer clause (j) of point
(D) Cheques payable in foreign currencies.

i. The various articles as details in the International Chamber of Commerce, Uniform

Rules for Collection (ICC-522) will be applicable for collection of cheque.

Cheque Collection Policy (Mar 2024) Page 8

 2. Timeframe for collection of local / outstation cheques/instruments

Sr. No Cheque Type Time Norms Remarks

1. Local Cheque On settlement of funds. Local cheques are

payable within the
jurisdiction of the
clearing house and will
be presented through
the clearing system
prevailing at the center.
All Banks are instructed
by RBI to extend CTS
system across all bank
branches in the
country.

Credit arising out of

local cheques shall be
given to the customers’
accounts immediately
after closure of the
relative return clearing
and withdrawal shall be
allowed on the same
day or maximum within
an hour of
commencement of
business on the next
working day, subject to
usual safeguards.

The above norm is also

subject to the extension
of return clearing
timings by the Clearing
House under
exceptional
circumstances, which
may lead to delay in
allowing withdrawals as
advised.

2. Seven working days Working days shall not

As per RBI include Bank Holidays
guidelines, only and days when
State clearing house is not
Government operational. Working
cheques may days will be considered
now be at both the
presented as ends/centers.

Cheque Collection Policy (Mar 2024) Page 9

 Sr. No Cheque Type Time Norms Remarks

outstation
cheques (for
reasons that
they may be
required to be
presented
under P2F
arrangements,
as required).
3. Outstation Ten working days - do -
cheques
drawn on a
major city.
4. Outstation Fourteen working days Banks will have to
cheques depend on the
drawn on all correspondent
other /drawee banks for this
locations. purpose.

5.a Cheques sent T+0 depending on the time and The realization of the
for collection in location (branch/CDK) of credit based on the cut
CTS clearing deposit of the instrument by the off time for the returns
customer. The cut off time for applicable to the
deposit may vary from branch respective grid.
to branch and city to city.
Government cheques which
needs to be presented through
P2F needs to be sent to the
particular location /center only.
5.b Cheques sent As per the holiday declared in Uniform holidays
for CTS clearing the National Grid calendar is observed,
– Uniform where the grid hub
holidays centers will be working
calendar for on most of the holidays,
the National even while other
grid locations are observing
holidays As per the
Uniform holidays
calendar, the grid hub
centers will be closed
on notified days and on
such occasions the
credit to the customer is
afforded on the next
working day of the Grid

The Uniform Holidays

calendar for the grid
would be available at a
nearest branch.

Cheque Collection Policy (Mar 2024) Page 10

 Sr. No Cheque Type Time Norms Remarks

6. Cheques sent Discontinued w.e.f. 31st The separate session for

for collection in December 2018. non CTS compliant
Non-CTS cheques under CTS is
Clearing discontinued from
31.12.2018. Such
instruments would not
be cleared through CTS
clearing and returned
unpaid.
7. Cheque drawn Best effort basis Bank would give credit
on foreign to the party on credit of
countries. proceeds to the Bank’s
Nostro Account with
the correspondent
bank after taking into
account cooling
periods as applicable
to the countries
concerned.

The timeframe specified above for collection shall be treated as the outer limit and
credit shall be afforded earlier if the process of collection gets completed earlier.

The Bank will not decline to accept outstation cheques deposited by the customers
for collection.

3. Interest payment on delayed collection of local / CTS / outstation cheques

a. Bank will pay interest at applicable savings bank rate to the customer on the
amount of the collection instrument in case there is delay in giving credit beyond
the time period mentioned above. The period of delay for this calculation would
be from the date of expiry of turnaround time indicated in the table on timeframe
for collection of local / outstation instrument upto the date of realization of the
instrument.

b. This payment would be made without any demand from customers in all types of
accounts. There will be no distinction between instruments drawn on Bank’s own
branches or on other banks for the purpose of payment of interest on delayed
collection except for reasons which are beyond the control of the Bank. Interest
payments would be applicable only for instruments (drawn in INR) sent for collection
within India.

Cheque Collection Policy (Mar 2024) Page 11

 4. Collection of Account Payee Cheques - Prohibition on Crediting Proceeds to Third Party
Account

Refer RBI circular DBOD.BP.BC.No.56/21.01.001/2005-06 dated January 23, 2006, in terms

of which banks are prohibited from crediting 'account payee' cheques to the account
of any person other than the payee named therein.

With a view to protect the banks being burdened with liabilities arising out of
unauthorized collections, and in the interest of the integrity and soundness of the
payment and banking systems, and in order to prevent recurrence of deviations
observed in the recent past, the Reserve Bank has considered it necessary to prohibit
the banks from crediting 'account payee' cheque to the account of any person other
than the payee named therein. Accordingly, as directed by RBI, the Bank will not collect
account payee cheques for any person other than the payee constituent.

Further, to mitigate the difficulties faced by the members of co-operative credit

societies in collection of account payee cheques, relaxation was extended vide
our circular DBOD.BP.BC.No. 47/21.01.001/2010-11 dated October 1, 2010. In terms of
the said circular, banks may consider collecting account payee cheques drawn for an
amount not exceeding Rs. 50,000/- to the account of their customers who are co-
operative credit societies, if the payees of such cheques are the constituents of such
co-operative credit societies. The relaxation is subject to the following conditions, as
outlined in the circular dated October 1, 2010 referred to above

 While collecting the cheques as aforesaid, banks should have a clear

representation in writing given by the co-operative credit societies concerned that,
upon realization, the proceeds of the cheques will be credited only to the account
of the member of the co-operative credit society who is the payee named in the
cheque. This shall, however, be subject to the fulfillment of the requirements of the
provisions of Negotiable Instruments Act, 1881, including Section 131 thereof.
 The collecting bank shall also carry out proper due diligence with respect to such
co-operative credit societies and ensure that KYC documents of the customers are
preserved in the society's records and are available to the bank for scrutiny.
 The collecting banks should, however, be aware that in the event of a claim by the
true owner of the cheque, the rights of the true owner of the cheque are not in any
manner affected by this circular and banks will have to establish that they acted in
good faith and without negligence while collecting the cheque in question.

5. Cash Management Services

For customers availing Cash Management Services (CMS), collection of instruments is

carried out as per the terms of the bilateral agreement between the bank and the
customers. Penalties, if any, will be payable as per the terms of the bilateral agreement.

6. Cheques / Instruments lost in transit / in clearing process or at paying bank’s branch

a. In the event a cheque or an instrument accepted for collection is lost in transit or in

the clearing process or at the paying Bank’s branch, the Bank shall immediately on
coming to know of the loss, bring the same to the notice of the account holder so
that the account holder can inform the drawer to record stop payment and also

Cheque Collection Policy (Mar 2024) Page 12

 take care that cheques, if any, issued by him/her are not dishonored due to non-
credit of the amount of the lost cheques/instruments.

b. If the cheque/instrument has been lost at the paying bank’s branch, the collecting
branch will have a right to recover the amount, including charges / interest
expenses reimbursed to the customer for the loss of the cheque/instrument from the
paying banker.

c. The Bank would provide all assistance to the customer to obtain a duplicate
instrument from the drawer of the cheque. This would be applicable only to
instruments drawn in INR payable within India.

d. The Bank will compensate the account holder in respect of instruments lost in transit
as follows and will recover it from the paying bank.

e. In case intimation regarding loss of instrument is conveyed to the customer after the
time limit stipulated for collection (7/10/14 days as the case may be) interest will be
paid for the period exceeding the stipulated collection period at the applicable
savings bank rate. In addition, the Bank will pay interest on the amount of the
cheque for a period of 15 days at savings bank rate to provide for likely further delay
in obtaining duplicate cheque/instrument and collection thereof.

f. The Bank would also compensate the customer for any reasonable charges he/she
incurs in getting duplicate cheque/instrument upon production of receipt, in the
event the instrument is to be obtained from a bank/institution who would charge a
fee for issue of duplicate instrument.

g. For foreign currency cheques lost prior to receipt by the correspondent bank, the
Bank will bear the stop payment charges on customer producing the relevant
document. Compensation for foreign currency cheques would be applicable only
if the Bank or its correspondent bank loses the cheque. The compensation in such
case would be as follows:

 In case intimation regarding loss of instrument is conveyed to the customer

beyond the time stipulated for collection, interest will be paid for the period
exceeding the stipulated collection period at the applicable savings bank rate.

 The Bank will also compensate the customer for any reasonable charges he /she
incurs in getting duplicate cheque / instrument upon production of receipt, in
the event the instrument is to be obtained from a bank / institution that would
charge a fee for issue of duplicate instrument.

 The Bank would also compensate for any possible loss due to adverse
movement of foreign exchange rate in case of foreign currency cheques. The
compensation would thus be calculated based on the time stipulated for
collection.

Cheque Collection Policy (Mar 2024) Page 13

Force Majeure

The Bank shall not be liable to compensate customers for delayed credit if some unforeseen
event (including but not limited to civil commotion, sabotage, accident, fires, terrorist attacks,
natural disasters or other “Acts of God”, war, damage to the Bank’s facilities or of its
correspondent bank(s), absence of the usual means of communication or all types of
transportation, etc. beyond the control of the Bank, prevents it from performing its obligations
within the specified service delivery parameters.

****

Cheque Collection Policy (Mar 2024) Page 14

 Annexure I

Illustrative but not exhaustive list of objections where customers are not at fault

(Applicable for Instrument and Image-based Cheque Clearing to Uniform Regulations

and Rules for Bankers' Clearing Houses)

Code Reason for Return

No.
33 Instrument mutilated; requires bank's guarantee
35 Clearing House stamp / date required
36 Wrongly delivered / not drawn on us
37 Present in proper zone
38 Instrument contains extraneous matter
39 Image not clear; present again with paper
40 Present with document
41 Item listed twice
42 Paper not received
60 Crossed to two banks
61 Crossing stamp not cancelled
62 Clearing stamp not cancelled
63 Instrument specially crossed to another bank
67 Payee’s endorsement irregular / requires collecting bank's confirmation
68 Endorsement by mark / thumb impression requires attestation by Magistrate with
seal
70 Advice not received
71 Amount / Name differs on advice
72 Drawee bank's fund with sponsor bank insufficient(applicable to sub-members)
73 Payee's separate discharge to bank required
74 Not payable till 1stproximo
75 Pay order requires counter signature
76 Required information not legible / correct
80 Bank's certificate ambiguous / incomplete / required
81 Draft lost by issuing office; confirmation required from issuing office
82 Bank / Branch blocked
83 Digital Certificate validation failure
84 Other reasons-connectivity failure
87 ‘Payee's a/c Credited' - Stamp required
92 Bank excluded

Cheque Collection Policy (Mar 2024) Page 15