Dear all,
For a school project I am looking at what happens when a cheque is paid into a bank. Could anyone explain how it works to me? I'm also interested in knowing what happens to the cheque once it has been paid (is it stored in a huge database, or simply destroyed)?
Thank you in advance for any information you can give me.
google for cheque clearing process and follow the first link
Banks keep photocopies of both the front and back of all cheques. Presumably stored digitally on a computer somewhere.
So if you wrote a cheques to someone a couple of years ago and want proof, you can request a copy from your bank.
In message , Adrian Smith writes
Actually, its the collecting bank that has the copy of the reverse side. 'Your' bank will be able to get it, but they will have to ask for it.
In fact, 'truncation' of the clearing now means the cheque never gets to the drawee but is held usually by an agent of the collecting bank. It will be kept for at least 7 years.
For sure, I'd imagine that the front and rear are automatically copied at some point in the clearing process.
I had a dispute with a business associate and asked the Natwest for a copy of a cheque I wrote 2.5 years previous and received a photocopy of both the front and back of the cheque.
They have swanky new mahcines at the nationwide which scans the cheque in as part of the paying in process. Prints a copy on the receipt too.
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