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    Collection of Oustation Check

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    RedSun
    The document discusses the process of collecting outstation checks. There are two types of outstation check collection: 1) when the collecting bank has a branch where the check is payable and 2) when it does not have a branch there. In the first case, the check is sent to the collecting bank's local branch, which collects from the paying bank. In the second case, the check is sent directly to the paying bank, which sends funds via demand draft to the collecting bank. The collecting bank then credits the customer's account after clearing the demand draft. The document outlines the workflow, from a customer lodging a check to funds being credited or the check being returned. It also describes the process for creating a standing

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Collection of Oustation Check

    Uploaded by

    RedSun
    45 views4 pages
    The document discusses the process of collecting outstation checks. There are two types of outstation check collection: 1) when the collecting bank has a branch where the check is payable and 2) when it does not have a branch there. In the first case, the check is sent to the collecting bank's local branch, which collects from the paying bank. In the second case, the check is sent directly to the paying bank, which sends funds via demand draft to the collecting bank. The collecting bank then credits the customer's account after clearing the demand draft. The document outlines the workflow, from a customer lodging a check to funds being credited or the check being returned. It also describes the process for creating a standing

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    Collection of oustation check

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    The document discusses the process of collecting outstation checks. There are two types of outstation check collection: 1) when the collecting bank has a branch where the check is payable and 2) when it does not have a branch there. In the first case, the check is sent to the collecting bank's local branch, which collects from the paying bank. In the second case, the check is sent directly to the paying bank, which sends funds via demand draft to the collecting bank. The collecting bank then credits the customer's account after clearing the demand draft. The document outlines the workflow, from a customer lodging a check to funds being credited or the check being returned. It also describes the process for creating a standing

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    45 views4 pages

    Collection of Oustation Check

    Uploaded by

    RedSun
    The document discusses the process of collecting outstation checks. There are two types of outstation check collection: 1) when the collecting bank has a branch where the check is payable and 2) when it does not have a branch there. In the first case, the check is sent to the collecting bank's local branch, which collects from the paying bank. In the second case, the check is sent directly to the paying bank, which sends funds via demand draft to the collecting bank. The collecting bank then credits the customer's account after clearing the demand draft. The document outlines the workflow, from a customer lodging a check to funds being credited or the check being returned. It also describes the process for creating a standing

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    Collection of Outstation Check

    Collection of Outstation Check


    Introduction
    A customer(‘Payee’) may deposit a check payable to him but drawn on an outstation bank
    branch for collection. The bank branch sending the check for collection is called ‘Collecting
    Bank Branch’. The Bank branch to whom the check is sent for collection is called ‘Paying
    Bank Branch’. Both the banks are different and located in different places. The person who
    has issued the check is called ‘drawer’ and the person to whom the check is payable is
    called as ‘payee’. Payee’s bank has to send the check for collection to Drawer’s Bank and
    once the check is realized credit the proceeds of the check to the customer’s operative
    account after deducting necessary charges. Outstation Check collection can be broadly
    classified into two types –

    a) Check payable at a place where collecting bank is having a branch.

    b) Check payable at a place where collecting bank is not having a branch.

    In case of ‘a’ above, the check is sent to collecting bank branch located in the place where the
    check is payable. That branch would lodge the check for collection with the paying bank and
    once check is passed by them, would credit the proceeds to the account of the customer and
    inform the collecting branch.

    In case of ‘b’ above, the check is sent directly to the ‘Paying bank branch’. Once the check is
    passed, that bank would send the proceeds to the ‘Collecting bank branch’ through a Demand
    draft . The ‘Collecting bank branch’ would then lodge the Demand draft in clearing and after
    it is cleared, credit the proceeds to the account of the customer.
    Collection of Outstation Check

    Workflow

    Workflow diagram for ‘Outstation cheque collection’:

    Customer Lodges the Check for collection

    Whether your bank has a branch where


    the “Paying bank branch” is located?

    NO
    YES

    Enter all the details in the System


    Enter all the details in the System

    Submit for Supervisor authorization


    Submit for Supervisor authorization

    Receive authorization confirmation


    Receive authorization confirmation

    Despatch the check to your branch Despatch the check directly to ‘Paying
    Bank branch’

    NO Check passed? Check passed? NO

    YES
    YES

    Customer’s Account credited


    Demand Draft received and lodged in
    clearing

    Return the Check to Customer

    1. Confirm that request for creation for SI is properly signed by the Account holder in case
    it is given by the customer.
    Collection of Outstation Check

    2. Verify whether the supervisor concerned has permitted creation of the SI.

    3. Go to appropriate menu option in the application browser for ‘SI Creation’.

    4. Enter the details on the screen in the relevant fields depending on the type of the SI.

    5. Submit for authorization to the supervisor.

    Creation of SI Process
    MAIN SCREEN (Screen 1)

    Fields:

    Account No. (Mandatory)

    Account holder name(Populated by the system)

    SI Serial No.(Generated by the system)

    SI Frequency(Mandatory from Pick list) Daily/Weekly/Monthly/Quarterly/Halfyearly/yearly

    SI type(Mandatory) Radio buttons ‘Fixed Amount/Variable Amount’

    Amount(Mandatory)Enabled if Radio button Fixed Amount is selected

    Multiples of(Mandatory) Enabled if Radio button Variable Amount is selected

    Maximum Amount(Mandatory) Enabled if Radio button Variable Amount is selected

    Balance to be kept in the account(Mandatory) Enabled if Radio button Variable Amount is


    selected

    Maximum Amount(Mandatory) Enabled if Radio button Variable Amount is selected

    Starting Date(Mandatory)

    Ending Date(Mandatory)

    Credit to(Mandatory) Radio buttons ‘Account/GL’

    Credit Product(Mandatory from Pick list)Enabled if Radio button Account is selected

    Credit Account(Mandatory)

    Credit Account Holder name(System populated)

    Narration(Mandatory)
    Collection of Outstation Check

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