What is Speed Clearing? How does it work?
Jan 21, 2015 17:25 IST
- 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.