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What is Speed Clearing? How does it work?

Important banking qna for banking aspirants, which is helpful in banking exam.

Jan 21, 2015 17:25 IST
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  • 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.

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