What is outstation cheque

An outstation cheque is a cheque drawn on a bank branch located outside the local clearing jurisdiction or city where it is presented for deposit. For example, a cheque issued by a Mumbai branch deposited in a Delhi branch is considered an outstation cheque. Key aspects include:

• Clearing Time: These cheques typically take longer to process than local ones, often taking 3 to 7 working days for realisation.
• Collection Charges: Banks generally levy service fees for collection, such as Rs 50 for amounts up to Rs 10,000 and Rs 100 for amounts up to Rs 1 lakh.