Clearing
PERFORMANCE OF CLEARING FUNCTION
MEANING OF CLEARING:
The word clearing has been derived from the word “clear” and is defined as:
CLEARING HOUSE:
Initially state bank of Pakistan provides the facility of clearing in its clearing house where representatives of all banks sit together and interchange their claims against each other. But now state bank of Pakistan has assigned this responsibility to National Institute of Facilitation Technologies (NIFT).
It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse.
Each bank has collected cheques as behalf of their customer but these cheques are not drawn on their own bank so in the clearinghouse, they hand over these cheques to respective banks on which these cheques are drawn. Similarly each bank receives cheques from other banks if any.
INSTRUMENT TO BE PRESENTED:
1. Cheques
2. Demand Drafts
3. Pay Orders
TYPES OF CLEARING:
There are four types of clearing:-
1. Inward Clearing
2. Outward Clearing
3. Intercity Clearing
4. Same Day Clearing
1. INWARD CLEARING:
Those Cheques and other negotiable instruments which are drawn on Habib Bank Limited Mall branch Lahore, sent by other banks, constitutes the inward clearing of Habib Bank Limited. After having all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are debited in Habib Bank Limited Mall Branch Lahore.
2. OUTWARD CLEARING:
When cheques and other negotiable instruments drawn upon other banks like City Bank, MCB, ABN-AMRO or Askari Bank of the same city (Lahore) are presented in Habib Bank Limited Mall Branch to deposit them in the respective payee’s accounts, these instruments are lodged in outward clearing of Habib Bank Limited Mall Branch.
3. INTER CITY CLEARING:
The cheques that are presented in inter city clearing are of another city and received by air. In this type of
MEANING OF CLEARING:
The word clearing has been derived from the word “clear” and is defined as:
CLEARING HOUSE:
Initially state bank of Pakistan provides the facility of clearing in its clearing house where representatives of all banks sit together and interchange their claims against each other. But now state bank of Pakistan has assigned this responsibility to National Institute of Facilitation Technologies (NIFT).
It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse.
Each bank has collected cheques as behalf of their customer but these cheques are not drawn on their own bank so in the clearinghouse, they hand over these cheques to respective banks on which these cheques are drawn. Similarly each bank receives cheques from other banks if any.
INSTRUMENT TO BE PRESENTED:
1. Cheques
2. Demand Drafts
3. Pay Orders
TYPES OF CLEARING:
There are four types of clearing:-
1. Inward Clearing
2. Outward Clearing
3. Intercity Clearing
4. Same Day Clearing
1. INWARD CLEARING:
Those Cheques and other negotiable instruments which are drawn on Habib Bank Limited Mall branch Lahore, sent by other banks, constitutes the inward clearing of Habib Bank Limited. After having all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are debited in Habib Bank Limited Mall Branch Lahore.
2. OUTWARD CLEARING:
When cheques and other negotiable instruments drawn upon other banks like City Bank, MCB, ABN-AMRO or Askari Bank of the same city (Lahore) are presented in Habib Bank Limited Mall Branch to deposit them in the respective payee’s accounts, these instruments are lodged in outward clearing of Habib Bank Limited Mall Branch.
3. INTER CITY CLEARING:
The cheques that are presented in inter city clearing are of another city and received by air. In this type of