The Department of Posts undertakes the work of clearance of POSB cheques for Banks and Financial Institutions in the State. The process of cheque clearance involves the following steps:

  • The banks and Financial Institutions advise its customers to open POSB Cheque Accounts at the Post Offices in TN Circle.

  • The Post Office will allow opening of such accounts after observing the due procedure and rules.

  • The customer has to give post dated cheques (PDCs) for each EMI to the bank /financial institutions against their loans taken from the banks.

  • These PDCs will be released by the bank / financial institutions just before the due date for clearance.

  • The banks will present the pre dated POSB cheques at the identified nodal offices along with the MIS in CD /email and hard copy on the mutually agreed dates.

  • The nodal offices will send the cheques for clearance to the participating HOs concerned.

  • The participating HOs will in turn send the cheques to the POs concerned for clearance and send a consolidated statement to the Nodal Office. Dishonoured cheques, if any, will be returned to the respective Nodal offices for further action.

  • The nodal office will pay by a single cheque for the amount realized, after deducting the commission and penalty charges for the bounced cheques, if any along with the returned cheques.

The service charges payable to DoP for this service will vary based on the requirements of the Service Providers.