al 15 Normas de convivencia 16-17

This department welcomes the cheques and other negotiable instruments drawn upon local branches of other banks. State Bank of Pakistan has a clearinghouse, in which the bank representative brings cheques and other Institutions and mutual claims of each bank on other are off set and a settlement is made by the payments. Clearing system is helpful for both the customers and bank in saving of time, labor and currency involvement.

PROCEDURE FOR CLEARING CHEQUES AND INSTRUMENTS

UBL is a member of SBP and has an account with SBP. The clearinghouse of SBP, through which branches forward and receive clearing cheques, with a schedule, conducts clearing.

The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheque, which he received on that day and sends these cheques to the checking officer.

Checking officer passes these cheques and vouchers by his initials, endorsement stamp and branch special crossing stamp. Clerk posts the contra entries of these vouchers in the clearing register. At every day at about 9:05 a.m. Representative of all local banks are in clearing house of SBP, to receive and forward the cheques.

PROCELURE FOR ADVISING H/O ACCOUNT

All the inter-bank adjustments will be effected through HO account, it will be essential for the branches to advise head office account about every transaction. The SBP will send a consolidated debit/credit advice to the branches in respect of clearing cheques delivered or received from the branches. The amount of the advice will agree with total amount appearing in the schedule of cheques delivered/received. Copies of all advice will be sent to head office. The other branches will not send any advice to head office.

TRANSFER DELIVERY

Branch receives the cheques and other negotiable instruments drawn on other branches of the same bank. Main branch of the UBL handles the transfer deliveries of cheques. The same clearing cheque procedure will be adopted in the transfer delivery case except both availing the facility of SBP, In case of cheque drawn on one branch and collected by another branch for the credit of its constituents the branch delivering the cheques will send a consolidated debit advice to the drawee branch. Clerk maintains the ledger for transfer deliveries, copies of all the advice will endorse to head office as usual.

COLLECTION & CLEARING PROCESS

UBL Multan UBL Lahore

Mr. Saqlain A/c

SBP Multan Clearing House

MCB Multan

Mr. Ali A/c 1-cheque

2-cheque

3-cheque

4-cheque 5-Credit

Advice 6-Credit Advice

7-Proceed Fate

For Collection

Suppose Mr. Ali’s A/c (account) is in any MCB Multan Branch. He purchases some products from Mr. Saqlain who is the party of Lahore. It means Mr. Ali has to pay the amount in Lahore to Mr. Saqlain. Suppose Mr. Ali’s A/c is in any MCB Multan branch and Mr.

Saqlain’s A/c is in UBL Lahore Kent branch. So, Mr. Ali will make the cheque of his own account and say to his bank (MCB) to pay it in UBL Lahore branch in Saqlain’s A/c. Then the MCB Multan branch will send this cheque to UBL Kent branch Lahore where there is Saqlain’s A/c. the UBL Kent branch Lahore will send this cheque to the main (hub) branch of UBL (its own bank branch) in Multan for the clearing process. Then main branch of UBL Multan will send this cheque to the SBP clearing house Multan. The bank sends its own employee to the clearing house with all the cheques of other banks. And then SBP clearing House will send this cheque to the MCB branch in which the cheque is made. If the Ali’s A/c has sufficient amount for the payment then this MCB branch will send the Credit Advice to the SBP Clearing House. Then SBP will credit this amount in A/c of UBL because the liability of UBL is increased and debit this amount in the A/c of MCB because their liability has decreased. Then this cheque will go to the main branch of UBL Multan. At the end, the main branch of UBL Multan will send proceed fate to the UBL Kent branch Lahore where is the Saqlain’s A/c and the amount will be credited in the A/c of Saqlain.

COLLECTION

In the above example, UBL Kent branch Lahore is the collection agent on the behalf of its customer (Saqlain). And the clearing process is happening in Multan between UBL main branch and MCB.

2- If both banks are in the same city then only clearing process would be performed.

UBL Multan

3- If the cheque has to go in different branches of the same bank then there will not be a clearing process. There will only be the confirmation process.

2

INWARD CLEARING

The bank that has to pay the amount it goes in the process of Inward (internal) Clearing. He has to scrutiny (Check) that is the cheque issuer has the sufficient amount or not? In the above example, MCB is doing inward clearing.

OUTWARD CLEARING

The bank that receives the cheque of another bank it goes in the process of outward clearing.

Because the bank is inspecting about a person who has an account in another bank. In above example UBL is performing outward clearing.

CROSS CHEQUE

Cross cheque is a cheque through which the amount is transferred from one account to another account. No body can withdraw the amount directly by this cross cheque even the favoree himself until this amount is credited in the his A/c. Then he can withdraw that amount from his own A/c.

UBL Lahore UBL Multan Proceed Fate

1-Cheque 3

SPECIMEN (Sample) OF A CROSS CHEQUE