Commission on Collection

Note

• Postal charges and out of pocket expenses like telephone, fax etc., are recovered on actual basis in case of bills. However, no additional charges such as courier charges, out of pocket expenses etc. are levied from the customers for collection of cheques.
• Collection charges are not levied in respect of local cheques and drafts presented through local clearing.
• Collection charges as per schedule are levied in respect of all bills (both local and outstation), except local cheques.
• At centers where the bank does not have its arrangement for collection, the commission on bills/ cheques is shared between the bank and collecting bank on a 50:50 basis.
• Whenever the bill/cheques are returned unpaid, the above commission is not levied. The charges prescribed as out of pocket expenses and returning charges are recovered.
• In addition to above charges Service tax applicable as per rules.