What Is 'cheque Discount'?

1.	What Is 'cheque Discount'?
Answer» Cheque DISCOUNTING service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for CLEARANCE, then bank will offer you a service for early payment. The bank can MAKE an early payment, but they will PAY only for certain PERCENTAGE of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear. Cheque discounting service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for clearance, then bank will offer you a service for early payment. The bank can make an early payment, but they will pay only for certain percentage of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear.

Answer»

Cheque DISCOUNTING service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for CLEARANCE, then bank will offer you a service for early payment. The bank can MAKE an early payment, but they will PAY only for certain PERCENTAGE of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear.

Cheque discounting service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for clearance, then bank will offer you a service for early payment. The bank can make an early payment, but they will pay only for certain percentage of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear.

What Is 'cheque Discount'?

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment