• The Bank as a part of the normal banking operations undertakes collection of cheques deposited by their customers, some of which could also be drawn on non-local bank branches. Such cheques are called outstation cheques. In order to facilitate faster collection of outstation cheques, the Reserve Bank of India started a special clearing styled "Speed Clearing" by leveraging the core banking solutions implemented in banks.
• To bring about public awareness on speed clearing, we have revised the policy to reflect the features of this collection system.
• The details of the revised policy, which are to be read superceding all the earlier instructions of the Bank are as under;

• Collection of cheques and other instruments payable locally at centers within India and abroad
• Our commitment regarding time norms for collection of instruments
• Policy on payment of interest in cases where the Bank fails to meet time norms for realization of proceeds of outstation instruments.
• Our policy in dealing with collection instruments lost in transit.

• Local Cheques
  • All cheques and other negotiable instruments payable locally would be presented through the clearing system prevailing at the center. Cheques deposited at branch counters and in collection boxes within the branch premises before the specified cut-off time will be presented for clearing on the same day. Cheques deposited after the cut-off time and in collection boxes outside the branch premises including off-site ATMs will be presented in the next clearing cycle. As a policy, the bank would give credit to the customer account on the same day on which the final clearing settlement takes place or at the most the next working day of their presentation in clearing. Withdrawal of amounts so credited would be permitted as per the cheque return schedule of the clearinghouse.
  • Effective April 1, 2010, RBI has withdrawn the facility of high value cheque clearing because there are other alternatives like national electronic fund transfer (NEFT) and real time gross settlement (RTGS) that have reduced the need for cheque-based clearing.
  • Branches situated at centers where no clearinghouse exists, would present local cheques on drawee banks across the counter and it would be the Bank?s endeavour to credit the proceeds at the earliest.
  • Timing for acceptance
    • Cheques would be accepted during the business hours of the branch across the counter as well as the drop boxes. Alternately cheques can be deposited at the drop-boxes at the ATMs round-the-clock.
  • Collection timings for local cheques drawn on other banks (local clearing)
    • The cut-off time for sending cheques for collection would be worked out for each location/branch based on cut-off time afforded by clearinghouse at each location. The cut-off timings would be displayed at branches/ATM drop boxes for customers.
    • For local cheques the time lines for local clearing will apply. The account holder is allowed to withdraw funds after the cut-off time as per return clearing norms in vogue at the centre.
  • Collection timings for local cheques drawn on own branches of bank (Transfer cheques)

    1	Cheques deposited across the counter and in branch drop box	Same day (available only on week days)
    2	Cheques deposited in ATM drop box	Within a period of 2 working days after pickup.

• Outstation Cheques
  • Cheques drawn on other banks at outstation centers will normally be collected through bank?s branches at those centers. Where the bank does not have a branch of its own, the instrument would be directly sent for collection to the drawee bank or collected through a correspondent bank.
  • Cheques drawn on the Bank's own branches at outstation centers will be collected using the inter-branch arrangements in vogue. As a part of the anywhere banking services of the Bank, customers will be provided same day credit for cheques drawn on the Bank?s own branches subject to limits/charges prescribed by the Bank from time to time.
• Speed clearing
  • Speed clearing refers to collection of outstation cheques through the local clearing. Outstation cheque collection through collection basis takes around one to two weeks depending on the corresponding/drawee bank for this purpose. Under Speed clearing, it would be two to three working days. Speed clearing aims to reduce the time taken for realization of outstation cheques.
  • The Bank can thus now locally pay outstation cheques of branches covered under CBS without having to physically send the cheque to the branch of the drawee bank for clearing.
  • Cheques having transaction codes 10, 11 and 13, which are drawn on CBS-enabled banks' branches, are eligible for being presented in Speed clearing. Pay Orders, Demand Drafts, Government instruments and cheques drawn on a bank or bank branch, which is not a part of the Speed clearing System, are not eligible for collection under Speed clearing.
  • The list of speed clearing centres and details of the participating banks' branches are available at the RBI site with the following URL address http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2016
• Cheques payable in Foreign Countries
  • Foreign currency cheques payable at foreign centers will be collected using services of correspondent banks. Cheques drawn on foreign banks at centers where the Bank or its correspondents do not have direct presence will be sent directly to the drawee bank with instructions to credit proceeds to the respective Nostro Account of Axis Bank maintained with one of the correspondent banks.
  • The cheque collection would take place within following parameters:
    • Cooling period is maximum 16 international working days from the value date of credit in our Nostro Account.
    • The date of credit entry of the collection proceeds in the customer's account would be reckoned considering the value date of credit to Nostro Account plus normal cooling period as stipulated above.
    • However, the credit entry to the customer's account would be value dated based on the value date of credit of funds in the Nostro Account of the Bank.
    • The Exchange Rate (Telegraphic Transfer Buying Rate) prevailing as on the date of application of fund and credit to customer account will be applied.
    • In case of return of cheques after cooling period, the debit entry in the customer's account would be value dated based on the value date of debit of funds in the Nostro Account of the Bank. The exchange rate risk in such instances will be borne by the customer.
• Immediate Credit of local/outstation cheques/instruments
  • No immediate credit of local cheques would be given in view of the Bank's efficient clearing procedures, which ensure that delays do not occur in realization of proceeds of the cheques. At centers where no clearing house exists cheques will be presented across the counter and the proceeds will be credited at the earliest.
  • Branches / extension counters of the Bank would grant immediate credit for outstation cheques / instruments drawn on Axis Bank centers up to the aggregate value of Rs. 15,000/- (maximum limit outstanding per account at any one point of time) tendered for collection of individual account holders subject to satisfactory conduct of such accounts for a period not less than 6 months.
  • Immediate credit will be provided at the sole discretion of the Branch Head after carefully verifying the satisfactory conduct of the account, creditworthiness of the customer and the genuineness of the need of the customer.
  • The facility will be offered on savings bank/current/cash credit accounts of the customers.
  • Under this policy, prepaid instruments like demand drafts, interest/dividend warrants shall be treated on par with cheques.
  • Rs. 250/- will be charged on each such case as a flat fee over and above the normal collection charges.
  • For the purpose of this policy, a satisfactorily conducted account shall be the one:
    • Opened at least six months earlier and complying with KYC norms.
    • Conduct of which has been satisfactory and bank has not noticed any irregular dealings.
    • Where no cheques / instruments for which immediate credit was afforded returned unpaid for financial reasons.
    • Where the Bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving immediate credit.
    • Maintenance of Average Quarterly Balance (AQB) stipulation for at least 2 preceding quarters.
• Purchase of local/outstation cheques
  • Bank will at its discretion, purchase local/outstation cheque tendered for collection as per prior arrangement.

• The timeframe specified above for collection shall be treated as the outer limit and credit shall be afforded earlier if the process of collection gets completed earlier.
• The Bank will not decline to accept outstation cheques deposited by the customers for collection.

• The Bank will pay interest to the customer on the amount of collection instruments in case there is delay in giving credit beyond the time period mentioned above. Such interest shall be calculated and paid at the applicable savings bank rate. The period of delay for this calculation would be from the date of expiry of turnaround time indicated in the table on timeframe for collection of local / outstation instruments upto the date of realization of the instrument.
• This payment would be made without any demand from customers in all types of accounts. There will be no distinction between instruments drawn on the Bank's own branches or on other banks for the purpose of payment of interest on delayed collection except for reasons which are beyond the control of the Bank. Interest payments would be applicable only for instruments (drawn in INR) sent for collection within India.

• In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying Bank's branch, the Bank shall immediately on coming to know of the loss, bring the same to the notice of the account holder so that the account holder can inform the drawer to record stop payment and also take care that cheques, if any, issued by him/her are not dishonoured due to non-credit of the amount of the lost cheques/instruments.
• If the cheque/instrument has been lost at the paying bank's branch, the collecting branch will have a right to recover the amount, including charges / interest expenses reimbursed to the customer for the loss of the cheque/instrument from the paying banker.
• The Bank would provide all assistance to the customer to obtain a duplicate instrument from the drawer of the cheque. This would be applicable only to instruments drawn in INR payable within India.
• The Bank will compensate the account holder in respect of instruments lost in transit as follows and will recover it from the paying bank.


• In case intimation regarding loss of instrument is conveyed to the customer after the time limit stipulated for collection (7/10/14 days as the case may be) interest will be paid for the period exceeding the stipulated collection period at the rates specified above.
• In addition, the Bank will pay interest on the amount of the cheque for a period of 15 days at savings bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof.
• The Bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/institution who would charge a fee for issue of duplicate instrument.

The Bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, accident, fires, terrorist attacks, natural disasters or other "Acts of God", war, damage to the Bank's facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc beyond the control of the Bank, prevents it from performing its obligations within the specified service delivery parameters.

In the event the cheque is returned unpaid, interest at the Bank's Prime Lending Rate (PLR) will be charged from the date of credit of the cheque till the date on which the customer makes the amount good.

Click here to find List of the Major Cities Outstation cheques drawn in all major cities