Collections

  • 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.

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