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Operational Aspects of Handling Clearing
What is a clearing house in the context of Indian banking?
A clearing house is a common facility where representatives of member banks meet to exchange cheques and other negotiable instruments drawn on each other, and settle the net amounts due between them.
What is the 'endorsement' requirement for transferring a cheque to another party?
Payee must sign on the reverse of the cheque.
Which body oversees the cheque clearing system in India?
The Reserve Bank of India (RBI) oversees and regulates the cheque clearing system in India, and operates clearing houses in major cities through its Department of Payment and Settlement Systems.
What is the maximum validity period of a cheque in India?
Three months from the date of issue.
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