Presentation Clearing Procedure at the Presenting – Branch 1 Preliminary Verification As the payment processing is done on the basis of images, the onus of due diligence shifts to the Presenting Bank, as provided under explanation II to Section 131 of The member banks have to enforce KYC (Know Your Negotiable Instruments Act. Customer) norms in letter and spirit. The banks should observe all precautions which a prudent banker does under normal circumstances, e.g., to check the apparent tenor of the instrument, physical feel of the instrument, any tampering visible to the naked eye with reasonable care, etc. For enhanced attention, based on exceptions, the banks may employ suitable risk management techniques like scrutiny of high value transactions, limit based checking by officials, new accounts alerts, etc. The presenting bank takes full responsibility for collecting on behalf of the intended payee and exercises due diligence as per the conditions laid down in the amended Negotiable Instruments Act. 2 Sorting of Instruments on or instruments should be settled internally. The CHIs are ”Drawn Self” “On-Us” configured to reject On-Us items. However, certain CHIs handling indirect members and sub-members may be allowed On-Us items. Apart from on cheques, the banks should also segregate segregating “drawn self” instruments which are being re-presented (primarily for adjusting endorsement at the back of the instrument (Refer to paras 3.9, 4.3), as also the instruments which are required to be sent physically to the drawee banks (Paper to Follow - Refer to para 3.24), as these categories of instruments would require separate process of handling by the bank. 3 Crossing All cheques received for collection over the are required to be branded bank’s counters with the crossing stamp prior to scanning. The suggested dimension and bank’s special the position of the Special Crossing Stamp are given in Annexure II. Banks should take care so as not to interfere with any material portion of the cheque, and the drawee banks are able to process their inwards without any undue problem on this account. 4 Capture of Images and Data The images of all the instruments in a batch / file must be duly captured along with MICR data using scanners set up for the purpose. The amount needs to be captured/ keyed in to complete the data record. The ideal number of instruments in one capture file should be about 200 for easier balancing.
Presentation Clearing – Procedure at the Presenting Branch 1 Preliminary Verification As the payment processing is done on the basis of images, the onus of due diligence shifts to the Presenting Bank, as provided under explanation II to Section 131 of Negotiable Instruments Act. The member banks have to enforce KYC (Know Your Customer) norms in letter and spirit. The banks should observe all precautions which a prudent banker does under normal circumstances, e.g., to check the apparent tenor of the instrument, physical feel of the instrument, any tampering visible to the naked eye with reasonable care, etc. For enhanced attention, based on exceptions, the banks may employ suitable risk management techniques like scrutiny of high value transactions, limit based checking by officials, new accounts alerts, etc. The presenting bank takes full responsibility for collecting on behalf of the intended payee and exercises due diligence as per the conditions laid down in the amended Negotiable Instruments Act. 2 Sorting of Instruments ”Drawn on Self” or “On-Us” instruments should be settled internally. The CHIs are configured to reject On-Us items. However, certain CHIs handling indirect members and sub-members may be allowed On-Us items. Apart from segregating “drawn on self” cheques, the banks should also segregate instruments which are being re-presented (primarily for adjusting endorsement at the back of the instrument (Refer to paras 3.9, 4.3), as also the instruments which are required to be sent physically to the drawee banks (Paper to Follow - Refer to para 3.24), as these categories of instruments would require separate process of handling by the bank. 3 Crossing All cheques received for collection over the bank’s counters are required to be branded with the bank’s special crossing stamp prior to scanning. The suggested dimension and the position of the Special Crossing Stamp are given in Annexure II. Banks should take care so as not to interfere with any material portion of the cheque, and the drawee banks are able to process their inwards without any undue problem on this account. 4 Capture of Images and Data The images of all the instruments in a batch / file must be duly captured along with MICR data using scanners set up for the purpose. The amount needs to be captured/ keyed in to complete the data record. The ideal number of instruments in one capture file should be about 200 for easier balancing.
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