All Clearing Houses managed by RBI, SBI, Associate Banks & Public Sector Banks

Dear Sirs,

2.The provisions with regard to the types of documents and process of endorsements by which documents can be cleared through clearing houses spelt out in the Uniform Regulations & Rules for Bankers’ Clearing Houses (URRBCH) are as under:

• The objects of the clearing house is to make arrangements for speedy and economic collection of cheques, bills and other documents, [cf. Regulation 1 of URRBCH];
• All cheques and other documents passing through the clearing shall bear a clearing house stamp. Documents will include cheques, banker’s demand drafts, dividend warrants, pay orders, Indian postal orders and bills accepted payable at a member banks but will not include coupons and bankers’ fixed deposit receipts, [cf. Rule 14 of URRBCH];
• The clearing house stamp affixed by the member on the document shall denote that the instrument is discharged by endorsement by such member, [cf. Rule 15 of URRBCH];
• All documents to be cleared must be properly endorsed or other wise discharged before being sent to the clearing house, [cf. Rule 16 of URRBCH].

3.It is now clarified that documents, which are not negotiable but are endorsable can also be routed through the clearing house system for collection.

4.The contents of this letter may please be brought to the notice of all clearing houses managed by your bank and the members thereof under advice to us.

Please acknowledge receipt of this circular.

Yours faithfully,

Sd/-

(Arun Pasricha)

General Manager