My son is working in Singapore. He plans to send back Singapore dollar cheques with his friend. He feels this will be the quickest way to remit funds. What is the procedure and charge to encash the cheque? Do I have to open a new account for it?
You can deposit the Singapore dollar cheque in your resident savings account. However, the time taken for such a cheque to realise could be anywhere between 14 and 21 working days, depending on which bank it is drawn. Additionally, there would be varying charges across banks. A better option is to advise your son to remit money either through a wire transfer (SWIFT) or the online money transfer facility offered by most leading banks. It may be cheaper and quicker.
What can I, as a customer, do if a bank takes more than the stipulated time to process an outstation cheque? How long does it usually take?
The maximum timeframe for collecting cheques drawn on state capitals/major cities/other locations are seven/10/14 days, respectively. For any delay beyond this, you are entitled to interest at the rate specified in the cheque collection policy of the bank. In case the rate is not specified in the policy, you are entitled to receive interest at the rate applicable to fixed deposits for the corresponding maturity. Banks’ cheque collection policy also state the limit up to which immediate credit may be received against outstation cheques.
My wife and I have been servicing a home loan for six years. She had to quit her job some time back, due to ill health. I also suffered a setback in terms of a pay cut last month. We are in a tight spot, financially. Would the bank allow us to stop paying the EMIs for a few months and continue with a lag? How best can the bank help us in this situation?
You will have to approach the bank, apprise them of your situation and mutually agree on the way forward. It may not be possible for the bank to give you a payment holiday but they may lower the monthly EMI payable, by providing an extension of the loan tenure. You may also consider liquidating some other asset you may have to ease your financial burden. Do note that any delay or non-payment would adversely affect your credit history, impacting future loan prospects.
The writer is MD, private and business clients (India), Deutsche Bank