Apart from transferring money
from one place to another, Banks are also in the business of "collecting" your
money from other places. For instance, if you have received a payment by way of a cheque
or DD drawn or payable at any station other than your own, you can deposit it in your
account with your local banker and request for collection of the amount. The Bank will
send the cheque to its branch at that centre and get the amount collected for a small fee.
The amount of cheque/ draft will be deposited in your account and the fee deducted
separately from your account. Banks also undertake collection of bills of exchange - both
usance and demand - for their business clientele.
- There are RBI norms for the time expected to be taken
for collection business and these norms are prominently displayed in banking hall of all
banks. If your collection is delayed beyond this period, the Bank is expected to pay
interest on the amount. If it does not, demand it.
- Retain the counter foil of all deposits made in the
bank as this is the only proof of deposit made till your account is credited
- If your business involves a number of such payments,
it is advisable to open an account with a Bank which has a large network of Branches.
- Charges for each of these activities differ from bank
to bank. While selecting a bank for opening an account, these charges are an improtant
parameter which one should keep in mind.