Yes, a simple guide on how to deposit (encash) a cheque (a local currency cheque) mainly for those who are doing it for the first time. Normally, when someone gives you a cheque instead of money, you would simply take it to your bank and ask the bank persons what and how to proceed with it. But, soon you’ll come to know that bank people are the most irritating one’s with very little patience; especially if it’s a Public bank.
Analysing the cheque
So now you’re on your own, with a cheque in hand which you want to turn into cash. Right, first see the cheque; is it a bearer, order or an a/c payee only cheque? If it’s a bearer cheque, you can simply go to any branch (in the city) of the bank that the cheque belongs to and present it to the teller (single window) and take your cash right away.
The same applies to an order cheque too; which will have your Name, either printed or written on it.
If it’s a a/c payee (indicated by two cross lines at top left or words printed on it as a/c payee only) cheque, you need to do some more work.
First, write your Name, Your A/C number and contact number at the back of the cheque. Some cheques have a place for endorsement at the back. Do not write it there; just write in the open white space.
Next, you have two options. You can either go to an ATM of your bank or directly go to your bank (any branch of your bank) where you have an account. You can finish the work at ATM’s itself, provided they have the cheque deposit slips and a drop box. I found most ATM’s near its home branches have both these all the time but some remote ATM’s do not have these. If either Dropbox or cheque deposit slip is not present, you must head to a bank.
You have nothing to do with the staff; directly head to the dropbox area of the branch. Normally, besides it, you’ll find a bunch of slips for various purposes, taking a DD, depositing money, withdrawing money etc. Different banks have different slips, so get the appropriate slip. You can easily read what each slip is meant for.
Filling the Cheque deposit slip
It contains two parts. One which you should tear and take with you (normally the smaller one) and the other which you should drop along with the cheque. Start filling the slip.
Although the slips may differ from bank to bank, in general, the front part of the slip requires you to fill details about your bank account (where you will receive your money) and at the back of the slip you will write details of the cheque, such as cheque number, bank from which the cheque is drawn, amount etc.
On the front part, you will write things such as your bank a/c number, branch name, cheque amount etc. Sign at the appropriate place.
Tear your portion of the slip, pin both cheque and the other part of the slip and drop them in the dropbox and walk away.
The dropbox will be cleared once every day. If the cheque is an at-par cheque (payable at any bank branch in India), your cheque will get cleared in a day or two.
Additional info: If you have Internet banking facility for your account where you’ll receive the money, you can see the cheque amount as Uncleared balance before it finally gets credited to your account.
Note: There are various scenarios here; such as same banks, different banks, in-city, outstation etc.
The cheque clearing process is the fastest, easiest and free if both your bank and the cheque bank are the same. In this case, the cheques will be cleared locally and will not need to be taken to a clearing house
Next, if both banks are different and cheque is an at-par cheque. This is the next best thing. Even this gets cleared pretty fast. But here, the clearing gets done at a clearing house and some banks may charge you some amount.
Then, if both banks are different and the cheque is an out-station cheque (which means that the cheque bank home branch is in some other city/state). This will take more time and most banks levy clearing charges.
CTS 2010 standard cheques will reduce all clearing times significantly.