Introduction:

The Cheque Collection Policy of Yes Bank Limited is a reflection of our on-going efforts to provide best in class service to our customers and set higher standards for performance. The policy is based on principles of transparency and fairness in the treatment of customers. This policy document covers -

• Collection of cheques and other instruments payable locally and at centers within India and outside India
• 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 on dealing with collection instruments for checks dishonored / lost in transit

Definition:

Collection can be defined as the process of clearing instruments on behalf of the customers. The instruments cover:

• Cheque/ Demand Drafts/Payorders drawn in the same city/clearing zone of collection as the drawer bank branch
• Cheques/Demand Drafts/Payorders drawn in a city/clearing zone other than the Drawer bank branch

Collection Arrangements

Conditions:

• The Credit Timelines would vary in case of Cash Management arrangements and the same would be applicable as per the agreed arrangement
• All local cheques deposited at branch counters and in collection boxes within the branch premises before the specified cut-off time will be processed 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
• The specified cut-off time at each branch is normally two hours before the respective clearing house timing and will be displayed at each of the branches.
• Outstation Cheques (locations where Yes Bank Limited does not have clearing facility) are sent on collection basis
• Customers shall be able to utilize the proceeds, subject to adequate withdrawable balance, as soon as clear funds have been received in line with return clearing time lines at various locations.

Cheques payable in Foreign Countries.

Cheques payable at foreign locations, where the bank has Correspondent banking arrangements, will be collected through correspondent banks. Cheques drawn on foreign banks at centres 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 the bank maintained with one of the correspondent banks.

For cheques sent under 'Cash Letter facility' the correspondent bank will give provisional credit to the bank on a predetermined date (which varies from 7 days to 9 days after tendering of cheque to correspondent bank). However, it will again be subjected to cooling period (i.e. waiting period for the possible return of the cheque under provisions of the laws of the respective countries).In case of secured collection facility; the overseas bank provides a guaranteed credit at an additional cost.

Customer shall be liable to repay the amount with all expenses which the bank may incur, if the cheque tendered for collection / purchased is returned unpaid. Instances in which returned cheques are lost in transit; correspondent bank charges shall be debited to the customer's account on the basis of the non-payment advice received from the correspondent bank.

The timelines for collection of such cheques, payable at foreign locations are as follows

*USD denominated cheques can be sent under the Cash Letter facility if specifically requested by the customer.
Service charges as defined in the applicable Schedule of charges as amended from time to time would be levied. The conversion rate applicable would be the applicable card rate/rate provided by treasury as on the date of credit to the customer account.

Compensation Policy:

Yes Bank Ltd will take remedial steps to compensate the customer, using variety of modes like value dating the credit or payment of interest etc.
Interest for delayed collection shall be paid as per the bank's compensation policy.

Policy on Cheques Lost in Transit/Dishonored Cheques

In event of cheque or an instrument accepted for collection is lost in transit or in clearing process or at the paying bank's branch, the bank on coming to know of the loss, will bring the same to the notice of the account holder through expeditious means so that the account holder can inform the drawer to record stop payment and also take care that cheque, if any, issued by him / her are not dishonored due to non-credit of the amount of the lost cheque/instruments. The compensation for all such accounts Lost in Transit/Dishonored Cheques will be as per Bank's Compensation Policy.

Immediate Credit Facility:

Bank will provide immediate cheque credit facility for outstation/local cheques upto an aggregate value of Rs 15,000/- tendered for collection by individual account holder at home branch subject to satisfactory conduct of such account

• The facility is applicable only to account payee cheques for local clearing and outstation collection where Yes Bank Ltd has a branch or a correspondent bank arrangement and can be availed only at the home branch of the account.
• The Customer will be required to fill in pre designed special deposit slips.
• The immediate cheque credit will be given at the time of cheque deposit.
• Bank will not levy any additional interest/charges and normal collection charges will be applicable.
• In case of cheque being returned, for whatever reason, the bank will recover interest at Bank's PLR, for the period the bank will remain out of funds:
• If a cheque send for collection for which immediate credit was provided by the bank is returned unpaid, the value of the cheque will be immediately debited to the account, apart from recovering the applicable charges.
• No interest will be charged to customer from the date immediate credit was given to the date the instrument was returned unless the bank has remained out of funds on account of withdrawal of funds. Bank will charge interest from date of return till reimbursement of money to the bank only to the extant the bank remained out of funds.

Criteria for Satisfactory Conduct

• Account should be live for more than one year with the bank.
• Account should have maintained product level AQB in last one year, for every quarter
• Conduct of the account is satisfactory and bank has not noticed any irregular dealing including instances of cheque return, ECS return, SI return in account for the past one year.
• Bank has not experienced any difficulty in recovery of any amount/charges/commissions in past one year.
• At least one customer initiated transaction in each quarters for the last two quarters.

Force Majeure

Bank shall not be liable if any transaction does not fructify or may not be completed or for any failure on part of the Bank to perform any of its obligations contemplated hereunder if performance is prevented, hindered or delayed by a Force Majeure event (defined below) and in such case its obligations shall be suspended for so long as the Force Majeure. "Force Majeure Event" means any event due to any cause beyond the reasonable control of the Bank, including without limitations, unavailability of any communication systems, breach, or virus in the processes or payment or delivery mechanism, sabotage, fire, flood, explosion, natural disasters or other "Acts of God", war, damage to the bank's facilities or of its correspondent bank(s), civil commotion, strikes or industrial action of any kind, riots, insurrection, war, acts of government, computer hacking, unauthorized access to computer data and storage devices, computer crashes, malfunctioning in the computer terminal or the systems getting affected by any malicious, destructive or corrupting code or program, mechanical or technical errors/failures or power shut down, faults or failures in telecommunication etc which prevents it from performing its obligations within the specified service delivery parameters