- Big Corporate Customers receive payments from their customers via Cheque. These cheques are high in volume.
- Requires depositing these cheques appropriately based on the value date of the cheque.
- Post Dated Cheques are to be warehoused and to be presented at a later date.
- Therefore corporates look for outsourcing the cheque collection service.
- Typically, Banks provide Cheque Collection Service to their corporate customers.
- Cheques could be two types
- House Cheques
- Other Bank Local Cheques
- Bank charges different processing fees for House Cheques and Other Bank Cheques.
- Fees can be charged either based on per cheque basis or volume pricing basis depending on the corporate.
- House Cheques are processed on the value date of the cheque.
- House Cheques are verified for:
- Signature of the Account Holder.
- Balance Available to clear the cheque.
- Other Bank Cheques are presented on the value date of the cheque.
- Retail and Corporate Customers today look for online bill payment services from their banks to pay for Electricity, Telephone, Mobile etc.
- Billing Organizations like the Electricity company, Telecom service providers look for outsourcing their Bill Collection services to the banks.
- Billing Organizations register themselves to the Banks.
- Retail/Corporate Customers send instructions to the bank online to debit their account to pay their bills.
- Bank debits the account of the payer on the date of payment.
- Bank settles collected Amount to the Billing Organization on a periodic basis.
- Bank can charge fees for the Bill Payment Service from their retail/corporate customers.
- Bank can also charge fees for the Bill Collection Service from the Billing Organizations.