Inward Clearing series - I

Dear readers , we present you the Inward clearing operations in finacle , accordingly today we will discuss whats Inward clearing is and how to open an Inward clearing zone and subsequently we will discuss other functions.

INWARD CLEARING

The   branch  customers   are   regularly  issuing cheques   as   payments   to   third   parties.Those collecting  banks  also  lodged  these  chqeues  through  their  outward  clearing  to Clearing House. On daily basis Clearing House distributes these collected cheques  to all  Bank-Branches.  Every  Bank-branch  receives  the  cheques  of  their  customer  for  payment  from  RBI  through  Inward  Clearing.  There  are  also  some  Zones  in  Inward Clearing.

Apart from that every Bank-branch gets Outward Return cheques with this Inward Clearing.   These   cheques   are   also   debited   to   customer’s   accounts   through Inward Clearing Zone i.e. Outward Reject Zone.

The cheque collection and maintaining the Inward clearing operation is generally done by a Centralised Back end office i.e Service Branch or Clearing Processing center on behalf of Branches .

Clearing Zone Code	Description
MICR	MICR I/W Clearing
NMICR	Non MICR I/W Clearing
MIRTN	MICR Outward Reject
NMIRTN	Non-MICR Outward Reject

For Inward Clearing activity the process is as follows:

Menu             Option	Function	Description
MICZ	O	Open Zone
ICTM	A	Add Cheques
ICTM	V	Verify Added Cheques
MICZ	S	Suspend Zone
MICZ	R	Revoke Suspended Zone
MICZ	V	Validation Run
MICZ	P	Post Run
MICZ	Z	Close Zone
MICZ	T	Validation Report

Now we will see Inward Clearing process step-by-step in following manner:

STEP 1:	Open Zone of I/W Clearing
Menu Option	MICZ	Function: O

The above screen of Maintenance of Inward Clearing Zone will always displays at the

time of execution of MICZ option.

After appearing of above screen Function: O (Open Zone) & Press F4

In Zone field: 1st Field enter Zone ID (let say 01) & 2nd Field Date, in which you are going to lodge the clearing. Press F4.

Then enter Total Instruments Received in the Field ‘Tot Inst BAR’ and Total Amount of

Instruments Received in the Field ‘Tot Amt BAR’

Now Press F10 for commit

Clearing Zone gets opened at this stage.

Note: The cursor shifts to the option box where you have the choices as under:

G - General details.   (The default screen)

S - Statistics   (gives break up of postings into various a/c’s, useful after Posting

Run)

T – Transaction Details

Now you have to lodge or enter the cheques in this Zone ( if your clearing is managed by a Service Branch / Clearing Processing center these functions are performed by them )

We will cover other functions in next posts , but feel free to post your feedback on this topic.