By : M.S.Yatnatti Editor and Video Journalist Bengaluru :The cheques are cleared by RBI in cheques clearing center and accordingly it debits or credits the funds and the if the cheque is returned the RBI Debits the account of Bank and once RBI Does debit the amount the banks clearing center data entry operators Manger level makes mark pending with respect to that cheque and all software's are integrated with core banking software's and once mark pending is done either MICR/CTS customer accounts will and shall automatically be barred to credit any amount of cheque and the case being such Branch manager cannot presume the cheque is cleared and allow withdrawal of amount .It s reported and alleged that Kotak Mahendra Bank Limited had filed a false and fabricated case against Shymla Manger Level data entry operator for withdrawal of Rs 52 lakhs by customer at Basavangudi branch Bangalore despite she and her colleague had mark pended the cheque after debited the amount by RBI and question of having a clear balance amount in customer account does not arise and Reportedly and allegedly the branch Manager allowing withdrawal by customer without balance amount in the account is stand alone fraud mistake blunder committed by branch manager in connivance with the customer .The Kotak Mahendra Bank Limited need to withdraw the case filed in CC 12380/2015 against Shymla Manger Level data entry operator and file the case against Prabhakara Manager at Basavangudi branch Bangalore for allowing Rs 52 lakhs allegedly withdrawal by customer without balance amount is stand alone fraud mistake blunder committed by branch manager in connivance with the customer .It is reported that in CC 12380/2015 Shymla Manger Level data entry operator has filed discharge application under 239 of Criminal Procedure Code 1974 and she is filing written arguments with all documents to prove her innocence in the case .The staff working at banks clearing center are just data entry operators and not decision makers and the bank software's are integrated and everything whatever data is entered is visible to all bank officials who have access to the software'sand this activity is outsourced by bank with third parties .
The clearing system: Cheques are paper items which are physically transferred between banks at the same time as the electronic data is processed. Although the paying bank receives some of the data electronically, the physical cheques themselves must also be transferred so that they can be examined by the paying bank for security and fraud prevention purposes. Day 1:When a cheque is paid into an account (at the collecting bank) it is sent to the bank's clearing centre at the end of the working day. Day 2:All cheques received are sorted at the clearing centre and the sort code, account number and serial number on the bottom of the cheque, together with the amount of the cheque, are sent electronically to the banks on which they are drawn (the paying bank) by 11am. The physical cheque is then sent to the bank on which it is drawn.Day 3:The paying bank debits the payer's bank account with the amount of the cheque on the morning of day 3. At the same time, all banks calculate the amount they must pay each other on the basis of the value of all the cheques exchanged on the previous day. The net balances are then settled across accounts held at the RBI .This is the end of the central clearing cycle. However, if the paying bank was unable to pay the cheque, for instance if the cheque owner has insufficient funds in their account, placed a stop on the cheque, or filled it out incorrectly, it would return the cheque to the original collecting bank on day 3, or in certain specific circumstances, by 12 noon on day 4. Cheques are generally returned by first class post, so the earliest the collecting bank will know that the cheque will not be paid is day 4, or possibly day 5. When you deposit a check and it "clears,” that's a good thing - but what does that really mean? Can a check bounce or be cancelled after it clears? Processing checks is a confusing process, and scammers take advantage of that confusion. The results can be a costly lesson in the risks of accepting checks.It's essential to know that a check can bounce after you deposit it - even if your bank allows you to withdraw cash from that deposit. The process of clearing checks involves moving money from the check writer's account to your account. To do this, you deposit the check, your bank asks the check writer's bank for money, that bank takes money from the check writer's account, and they send it over.Once this process is complete, it is generally (but not always) safe to spend the money.
Did it Really Clear? Unfortunately, the term "clear” sometimes gets used prematurely. An item has really only cleared after your bank has received funds from the check writer's bank. But bank employees might tell you that a check has cleared, and your bank's computer systems might show that you have those funds available for withdrawal.Mixed terminology: in many cases, when somebody tells you an item cleared, they're saying that you can use the money. You can spend that money with your debit card, you can withdraw cash at an ATM, or you can set up a payment through online bill pay.Most of the time, this informal terminology is fine - If the check doesn't bounce, and you can spend freely.Funds available: most of the confusion around checks comes from bank policies andlaws that allow you to spend money before a check really clears. But that just means you can use the money - it doesn't mean the check has cleared (or that the funds have arrived from the check writer's bank).What if you Spend the Money?If you deposit a check, withdraw or spend the money, and the check bounces, you've got problems. The bank will reverse the deposit to your account. If you have money in the account, your account balance will drop - if not, you'll have a negative account balance and you'll start bouncing other payments and racking up fees.Ultimately, you are responsible for deposits you make to your account, and you're the one at risk. You are protected from certain types of errors and fraud, but that protection does not cover bad checks that you deposit..There are a few ways to avoid getting ripped-off (or having to pay for somebody else's honest mistake). First, the longer you wait to spend the money, the better your chances.