Question

What are the three for processing and collecting a check?

Answer 1

Collecting and Processing a check- Steps are as following:

1. Firstly customer deposits check in the banks.
2. Bank collects the check and keeps it where all checks are kept for clearing.
3. Checks are sent to Regional collecting centers that collect all the checks from their presenting branches.
4. Checks are sent to the clearing house.
5. Checks are sent to the drawee bank.
6. Customer's account is debited and settlement is done.

Everything is done by electronic system, there is no need for physical documents now. Thanks to the technological advancements, it takes no time to deposit and clear a check.