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.