You might have often wondered what has happened to that cheque you recently deposited. And if you enquired, your bank would have given you a whole bunch of doesn’t-make-sense-to-me reasons. Thankfully, the Reserve Bank of India recently passed a notification on cheque clearance timeframes to be adhered to by Indian Banks.
I particularly like this guideline:
For local cheques, credit and debit shall be given on the same day or at the most, on the next day.
It will be some time before our banks actually adhere to these guidelines, but nonetheless it’s a step in the right direction.
Awareness Fridays is my initiative to spread awareness on topics relevant to personal finance — every Friday. I urge you to take some time off and absorb this information — it’s pretty useful. And, as always, do spread the word if you find this useful.