- Speed Clearing stands for collection of outstation cheques (a cheque drawn on non-local bank branch) through the local clearing.
- It facilitates collection of cheques drawn on outstation core-banking-enabled branches of banks, if they have a net-worked branch locally.
- All the banks have networked their branches by implementing Core Banking Solutions (CBS).
- In CBS environment, cheques can be paid at any location obviating the need for their physical movement to the Drawee branch.
- Cheques drawn on outstation CBS branches of a Drawee bank can be processed in the Local Clearing under the Speed Clearing arrangement, if the Drawee bank has a branch presence at the local centre.
What is Speed Clearing? How does it work?
Important banking qna for banking aspirants, which is helpful in banking exam.
By Jagran Josh
Jan 21, 2015 17:25 IST
