Clearing System in Indian Banks

7 Pages Posted: 19 Aug 2009

See all articles by Sathish Kumar Balasubramanian

Sathish Kumar Balasubramanian

VLB Janakiammal College of Engineering and Technology

Date Written: August 19, 2009


Banking system of a country is the back bone of its financial system. The major challenging task of the bank is clearing customers’ cheques. In a developing country like India, the volumes of cheques sent for clearance are growing fast. So an effective and efficient system of handling clearance process has to be developed. Reserve Bank of India (RBI) which is the apex of Indian Banking system manages the clearing process in India. It has made this clearing process effective by implementing latest technological based method like other developed countries. This article talks about the practices followed in India relating to clearing system.

Keywords: Cheque Truncation, Electronic Fund Transfer, Electronic Clearence system, Real Time Gross Settlement

Suggested Citation

Balasubramanian, Sathish Kumar, Clearing System in Indian Banks (August 19, 2009). Available at SSRN: or

Sathish Kumar Balasubramanian (Contact Author)

VLB Janakiammal College of Engineering and Technology ( email )

Kovai Pudur
Coimbatore, Tamilnadu 641042

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