TYPES OF SETTLEMENT PROCESSES IN OTHER COUNTRIES

1. Collection of Clean Instruments Denominated in GBP and Payable in United Kingdom (UK):

Clean Instruments drawn in GBP on banks in UK, which are purchased or received for collection by our authorized branches are sent to SBI Global Link Services for collection through National Westminster Bank PLC, London. This will include all clean instruments viz. bank drafts, foreign currency travellers cheques (FCTCs) (other than AMEX travellers cheques), cheques, dividend warrants etc. denominated in GBP and drawn on banks in UK, including our London Branch, SBI European Bank Limited (SEBAL) and money/postal orders payable in UK. These instruments must not be sent to our London Office.

A. Collection Under Usual Reserve (CUR): For instruments sent under CUR, the proceeds are credited to our Account on third working day but same can be debited by NATWEST in case of return of any instrument through London Clearing House with in the agreed guaranteed period of 14 working days.

B.Credit After Collection (CAC): There is availability of another service name Credit after Collection (CAC) where payment is credited and advised separately only after funds are finally cleared and hence in the case of instruments sent under CAC there will be no period of reserve and payment can be treated as absolute as soon as it is advised by GLS. Under CLS arrangement instruments are collected only on behalf of the named payees therein in case of instruments bearing "Account Payee" or Not/Non - transferable crossing. Correspondences will be made only with GLS and not with NATWEST.

It is to be noted that as per the UK Law, instruments payable in UK which turn out to be forged or which bear material alterations or mutilated or fraudulent endorsements or forged signatures, etc. may be returned any time (without any time limit). Hence a debit may be raised to the customer's account subsequently, if the instrument lodged turns out to be of the above nature.

2. Collection of Clean Instruments Denominated in USD and Payable in United States of America (USA):

2.1 Priority Remittance Cash Letter Service (PRCLS) – (DEUTSCHE BANK):

  • Availability of funds T + 2 business days from the date of receipt of instrument to Deutsche Bank in USA. However, branches must adhere to the cooling period of 10 business days from the date of credit to our Nostro account before releasing the payment to the customer.

  • Eligible Instruments - USD cheques and FCTCs drawn on and payable at banks in USA and Canada, US Treasury cheques and Postal Money Order.

  • Any amount .

  • No protection against fraud or returns for any reason whatsoever. Our account may get debited at any time and such amounts to be passed on to the customers.

It is to be noted that as per US Law, instruments payable in USA which turn out to be forged or which bear material alterations or mutilations or fraudulent endorsements etc. may be returned any time. Hence, a debit may be raised in customer's account subsequently or the Bank will have the authority to recover the amount from customer, if the instrument lodged turns out to be of the above nature.

2.2 Preferred Cash Letter Service (PCL) – (DEUTSCHE BANK):

  • Availability of funds or notice of non-payment at T + 15 business days from the date of receipt of instrument to Deutsche Bank in USA. .

  • Eligible Instruments - USD cheques drawn on and payable at banks in USA. .

  • Any amount from US$ 50.00 up to US$ 2000.

2.3 Preferred Collection Service (PCS) – (DEUTSCHE BANK):

  • Availability of funds or notice of non-payment at T + 15 business days from the date of receipt of instrument to Deutsche Bank in USA.

  • Eligible Instruments - USD cheques drawn on and payable at banks in USA.

  • Any amount above US$ 2000.00 up to US$ 250,000.

  • In case of PCL and PCS, if Deutsche Bank does not advise us of non-payment of eligible items within T + 15 business days the credit becomes absolute and final. This protection, however, covers frauds on the face of the instrument only and does not cover fraud on the back of the item, including but not limited to fraudulent endorsement.

2.4 Cash Letter – (WELLS FARGO BANK):

  • Availability of funds or notice of non-payment at T + 2 business days after the date of receipt of instrument to Wells Fargo USA. However, branches must adhere to the cooling period of 10 business days from the date of credit to our Nostro account before releasing the payment to the customer.

  • Eligible Instruments - USD commercial cheques drawn on banks in USA, USD bank drafts payable in the US, Money Orders issued by banks in the US, International Postal Money Orders issued by the US Postal Service and USD Travellers Cheques drawn on institutions in the US.

  • Any amount.

  • No protection against fraud or returns for any reason whatsoever. Our account may get debited at any time and such amounts to be passed on to the customer. .

2.5 Final Credit Service (FCS) – (WELLS FARGO BANK):

  • Availability of funds or notice of non-payment at T + 6 business days after the date of receipt of instrument to Wells Fargo USA in case of instruments drawn on any Wells Fargo bank branch, drawee banks located in Philadelphia, Pennsylvania or New York, New York,. For all other eligible items the period would be T + 15 days.

  • Eligible Instruments - USD cheques drawn on and payable at banks in USA, Puerto Rico or the US Virgin Islands.

  • Any amount above US $ 50 and not more than US $ 350,000.

  • Wells Fargo Bank will promptly electronically advise us of any returned items.

  • If Wells Fargo Bank does not advise us of non-payment of eligible items within T + 6 / 15 business days the credit becomes absolute and final. This protection, however, covers frauds on the face of the instrument only and does not cover fraud on the back of the item, including but not limited to fraudulent endorsement.

3. Collection of Clean Instruments Denominated in CAD and Payable in Canada :

All CAD cheques are to be sent to GLS, Mumbai for collection through CIBC (for instruments up to & inclusive of CAD 10000) and SBI Toronto (for instruments above CAD 10000).

4. Collection of Clean Instruments Denominated in Euro and National Currency Units (NCUS) of The Euro Zone.

The Bank is having arrangement with Deutsche Bank AG under Cash Letter Service (CLS) for collection of Clean Instruments viz. Bank Drafts, Foreign Currency Travellers Cheques, Cheques, Dividend Warrants, etc. Denominated in Euro or any of the NCUs of the 12 countries of the EMU drawn on banks in any of the 15 European Union countries.

Coverage: All clean collections as indicated above. All authorized branches in all Circles are included in the arrangement. However, clean instruments denominated in currencies of the 3 countries of EU who are not members of the EMU viz. United Kingdom, Denmark and Sweden are not covered under this arrangement. Similarly clean instruments denominated in eligible currencies but drawn outside the 15 countries of the EU are also not covered under the arrangement.