Speed Clearing refers to collection of outstation cheques through local clearing. In simple words, speed clearing means processing of outstation cheques electronically and without movement of cheques from the presentation centre (city where the cheque is presented) to drawee centre (city where the cheque is payable). This facility enables customers to place there checks payable anywhere in the country to any clearing house. The only condition is that the branch on which the check is drawn should have core banking solution (CBS) enabled in it. This approach makes the process much easier, cheaper and faster. Through this process, an outstation cheque is processed as local cheque. It basically aims to reduce the time taken for realization of outstation cheques.
Banks have networked their branches by implementing Core Banking Solutions (CBS). In CBS environment, cheques can be paid at any location eliminating 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.
Cheques having transaction codes 10, 11, 12 and 13 which are drawn on CBS-enabled bank branches are eligible for being presented in Speed Clearing in India. Government cheques and Demand Drafts are not eligible for collection under Speed Clearing.
For facilitating customers to know CBS status of a branch,
- some of the banks stamp / print ‘CBS’ on the cheque leaves.
- If length of account number is more than 10 digits printed on the cheque leaves may give a broad indication regarding CBS status of the branch.
LIST OF BANK BRANCHES PARTICIPATING IN SPEED CLEARING(INDIA) – AS ON FEBRUARY 28, 2011