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If you take a cheque to your bank to pay it in, the bank will credit your account with the amount, but you will not be able to withdraw this amount until the bank has processed the cheque internally and received the money from the bank issuing the cheque. When they have done this the money is 'really' in you account and you can take it out - the cheque has cleared.
This practice was needed (and reasonable) when cheques had to be processed between banks manually and protected the bank from the effects of bad cheques. However modern banking means that the clearing is electronic and yet the banks still keep the cleared funds for the same amount of time they always did (a week) - they use these uncleared funds themselves and it is wrong!
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What is inward check?
Inward clearing means the cheques received by the bank from other banks.These - Inward clearing - cheques are the cheques drawn by the bank/branchcustomerson their account in favour of other parties. On receipt of the inward clearing, the cheques arepostedto the various accounts on which they are drawn - meaning the accounts of the cheque issuer or drawer with the bank is debited tothe accountand the payment is made to the bankpresentingthe cheque.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
What is meant by the cheques?
Cheques are written orders to a bank to pay stated sum from an account to a named person. hey i am shanice fr: jamaica, one luv!!!!!!!!!!!
What methods can be used to deposit cash and cheques to a business bank account?
By usin cheques,it can be a cross cheques or open cheques
Can cheques be falsified?
Yes. Cheques can be falsified but it is illegal. Only banks can issue Cheques to their customers. No one else is authorized or rather supposed to print Cheques. If anyone is found/caught printing/using bogus or fake Cheques they can be legally prosecuted and jailed for it.
What is inward check?
Inward clearing means the cheques received by the bank from other banks.These - Inward clearing - cheques are the cheques drawn by the bank/branchcustomerson their account in favour of other parties. On receipt of the inward clearing, the cheques arepostedto the various accounts on which they are drawn - meaning the accounts of the cheque issuer or drawer with the bank is debited tothe accountand the payment is made to the bankpresentingthe cheque.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
What are uses of computers in banks besides cash points and clearing cheques?
state two uses of computers in banking
What is meant by the cheques?
Cheques are written orders to a bank to pay stated sum from an account to a named person. hey i am shanice fr: jamaica, one luv!!!!!!!!!!!
What is purchase check?
It's a kind of facility where a bank customer can draw upto a pre-specified amount against the value of the outward clearing cheques.
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I have invested Rs 50,000/- in the 2005 and I have received 6 Cheques which are not yet cleared what is the reason for not clearing the cheque ?
What methods can be used to deposit cash and cheques to a business bank account?
By usin cheques,it can be a cross cheques or open cheques
How long does a overseas check take to clear?
In the UK, cheques from other UK banks take up to 7 days to clear. The main problem with cheques is that they have to be physically sent to a clearing house where all the banks get together and swap their cheques. in the uk this is in london so a cheque put into your local branch in say, glasgow, will be sent by post to london, picked up by the issuing bank and returned to their main office so it can be processed.
Why cheques are not considered as part of money supply?
what is a cheques
Can cheques be falsified?
Yes. Cheques can be falsified but it is illegal. Only banks can issue Cheques to their customers. No one else is authorized or rather supposed to print Cheques. If anyone is found/caught printing/using bogus or fake Cheques they can be legally prosecuted and jailed for it.
What is the meaning of Non Micr cheques?
Defination for NON-MICR CHEQUES
What is difference between inward CLEARING and outward?
Assume you hold an account with HSBC, and you give a cheque to your friend who holds account with Citi . So a cheque drawn on HSBC MICR, gets deposited in Citi . Now HSBC Processing team receives the cheque from Citi processing team through clearing . This is Inward clearing of funds wherein HSBC checks signature, funds, stale or post dated details before clearing it or return it. On the other way, cheques drawn on other bank deposited in hsbc and the same sent by HSBC to drawn on bank through clearing is outward clearing.. These processes have now been automated using applications like ICCS - Image cheque clearing system. etc..
