Clearing & Collection

What is clearing?
An arrangement to transfer money between banks, basically to clear cheques/obligations drawn on
them by their customer or by themselves.

Types of Clearing

Outwar
Inward
d
Clearin
Clearin
g
g
Forms of Clearing:

Conventio
Local Inter-City Same-Day
nal
Clearing Clearing Clearing
Clearing

Special
Clearing

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CIRCULAR NO. P/ INST/2020/130 APRIL 01, 2020
FACILITATION REGARDING PAPER-BASED CLEARING OPERATIONS IN THE WAKE OF COVID-19

In this regard, branches will follow the appended process in letter & spirit:
1. Payee/Beneficiary of an ABL cheque maintaining account with any other bank will visit any ABL
branch to deposit the cheque for clearing.
2. Before receiving the cheque, branch will:
Ensure that cheque is crossed and bears the name of the Payee/Beneficiary.
Check & ensure that Payee/Beneficiary has mentioned following details on the back of the cheque
(without effecting area of interest):
Beneficiary’s IBAN
Beneficiary’s Account Title
Beneficiary’s CNIC Number
Beneficiary’s Mobile Number
Obtain name of Beneficiary’s Bank & Branch and Purpose of Transaction.
Check that sufficient balance is available in the Drawer’s Account.
Match & ensure that the name of the Payee/Beneficiary of the cheque is same as appearing on his/her
Original CNIC.
Prudently check the security features of the cheque to confirm its genuineness and take all
precautionary measures to establish genuineness of the Cheque as per Sub-Section 2.12. “Checking of
Security Features & Precautionary Measures to be taken before honouring Cheques/ Instruments” of
Chapter-3 “Cash & Security” of Branch Banking Manual.
3. Upon satisfaction, branch will:
Receive the cheque along with duly filled & signed “Direct Cheque Deposit Request Form” (ANNEXURE-
A) from the Payee/Beneficiary/ Depositor (in case of entity) of the cheque as per his/ her CNIC.
Obtain copy of CNIC of the Payee/ Beneficiary/Depositor of the cheque, mark it as “Original Seen” with
full signature & stamp and keep the same with Request Form for branch record.
Carry out Call Back Confirmation against cheques amounting Rs. 100,000/- & above to ascertain the
authenticity & genuineness of the cheque and verification of Payee/Beneficiary as per Sub-Section 2.19.
“Call Back Confirmation (CBC)” of Chapter-3 “Cash & Security” of Branch Banking Manual.
Process the transaction in T24 System to debit the Drawer’s Account and transfer of funds to Payee’s/
Beneficiary’s Account through RTGS - MT 102 as per procedure delineated in the annexed User Guide
(ANNEXURE-B).
Obtain FBP endorsement on rear side of the cheque and “Acknowledgement” portion of the “Direct
Cheque Deposit Request Form”.
Cancel the cheque and sign off the “Direct Cheque Deposit Request Form” as per instructions delineated
in Clause # 2.15.1.15. “Posting in T24 System & Signing (Cancellation) of Cheque & Signing of Deposit
Slip” of Chapter-3 “Cash & Security” of Branch Banking Manual.
Upon execution of transaction, Branch will:
Handover signed “Acknowledgement” portion of “Direct Cheque Deposit Request Form” to the Payee/
Beneficiary /Depositor of the cheque.
Retain “Direct Cheque Deposit Request Form” & copy of CNIC of the Payee/ Beneficiary /Depositor along
with cheque in branch daily vouchers.
5. Credit against the cheque will be processed through RTGS regardless of any minimum threshold.
6. As per EFT Regulations, alerts will be generated to debited account holder on their registered mobile
number.
7. Charges on abovementioned transactions through RTGS (MT 102) have been waived till further
instructions.

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 Centralized Clearing
• This project was approved by the bank’s Operations and Services Committee (OSC) on 10th
September, 2015
• INCHEQS software is used for centralized clearing provided by a Malaysian Firm i.e. INSITEMY.
Objectives:
• Timely & Accurate processes
• Reduced Human Errors
• Reduced Fraud Risk
• Improved Internal Controls
Collection

A procedure for collecting payments against draft, bills, cheques, or documents and settling debts.
Types of Collection
• Inward Bills for Collection (IBC)
• Outward Bills for collection (OBC)

Prepare and lodge outward clearing strictly in accordance with laid down
instructions without any exception.

Stamp bearing name of Bank & Branch is impressed on bundle cover.

Date is mentioned & authorized signatory signs the bundle cover of Outward
Clearing.
Authorize entries posted in system only upon physical verification of Cheques
and deposits slips.

Branches must tally the posting of outward clearing, with the NIFT Scroll.

Outward clearing must only be released in customer’s accounts after receiving

fate / confirmation from NIFT.

Inter Branch Clearing Heads are adjusted /reconciled before COB on daily
basis.

COB marker checklist is being completed before COB in the system

Daily calling of all branch vouchers against the COB reports is being done
regularly.

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