4. Payment of Interest for delayed Collection of Outstation Cheques :

The bank will pay interest to its customer on the amount of collection instruments in case there is delay in giving credit beyond the time period mentioned above. Such interest shall be paid without any demand from customers in all types of accounts. There shall be no distinction between instruments drawn on the bank’s own branches or on other banks for the purpose of payment of interest on delayed collection.

Interest for delayed collection shall be paid at the following rates :

a) Savings Bank rate for the period of delay beyond 7/10/14 days as the case may be in collection of outstation cheques.

b) Where the delay is beyond 14 days interest will be paid at the rate applicable to for term deposit for the respective period.

c) In case of extraordinary delay, i.e. delays exceeding 90 days interest will be paid at the rate of 2% above the corresponding Term Deposit rate.

d) In the event the proceeds of cheque under collection was to be credited to an overdraft / cash credit / loan account of the customer, interest will be paid at the rate applicable to the overdraft / cash credit / loan account. For extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the overdraft / cash credit / loan account.

It may be noted that interest payment as given above would be applicable only for instruments sent for collection within India.

The interest may be paid only when such amount is Rs. 10 or more.

5. Payment of Interest for delayed Collection of Outstation Cheques sent for collection to foreign countries.

The Bank will pay interest to its customers on account of collection of outstation instruments sent for collection to foreign countries, where there is delay in giving credit beyond the stipulated time norms prescribed in the policy.

Interest for delayed collection will be payable at the following rates :

a) Savings Bank rate for the period of delay beyond 30 working days (subject to holidays in these countries).


b) In case of extraordinary delay, i.e. delays exceeding 90 days interest will be paid for the period beyond 30 days at the rate of 2% above the corresponding Term Deposit rate applicable to domestic deposits.

c) In the event the proceeds of cheque under collection are to be credited to an overdraft/cash credit/loan account of the customer, interest will be paid at the rate applicable to the overdraft/cash credit/loan account. For extraordinary delays, interest will be paid at the rate of 2 % above the rate applicable to the overdraft/cash credit/loan account.

6. Bank charges etc. :

Service charges as prescribed from time to time and actual postages (Regd. / speed post) or Courier Charges / out of pocket expenses to be recovered fully.


7. Cheques / Instruments lost in transit / in clearing process or at paying bank’s branch :

In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying bank’s branch, the bank shall immediately on coming to know of the loss, bring the same to the notice of the accountholder so that the accountholder can inform the drawer to record stop payment and also take care those cheques, if any, issued by him / her are not dishonoured due to non-credit of the amount of the lost cheques/instruments. The bank would provide all assistance to the customer to obtain a duplicate instrument from the drawer of the cheque.

The bank will compensate the accountholder in respect of instruments lost in transit in the following way :

a) In case intimation regarding loss of instrument is conveyed to the customer beyond the time-limit stipulated for collection (7/10/14/30 days as the case may be) interest will be paid for the period exceeding the stipulated collection period at the rates specified above.

b) In addition, bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof.

c) The bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/institution who would charge a fee for issue of duplicate instrument.

8. Force Majeure

The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc.) beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters.

9. Charging of Interest on cheques returned unpaid where Instant Credit was given :

If a cheque sent for collection for which immediate credit was provided by the bank is returned unpaid, the value of the cheque will be immediately debited to the account. The customer will not be charged any interest from the date immediate credit was given to the date of return of the instrument unless the bank had remained out of funds on account of withdrawal of funds. Interest where applicable would be charged on the notional overdrawn balances in the account had credit not been given initially.

If the proceeds of the cheque were credited to the Savings Bank Account and was not withdrawn, the amount so credited will not qualify for payment of interest when the cheque is returned unpaid. If proceeds were credited to an overdraft / cash credit / loan account, interest shall be recovered at the rate of 2% above the interest rate applicable to the overdraft / cash credit / loan from the date of credit to the date of reversal of the entry if the cheque/instrument was returned unpaid to the extent the bank was out of funds.