Cheque Clearing

Cheque clearing is the process through which banks exchange and verify cheque payment information to arrange settlement between the payer’s and payee’s banks.

A deposited cheque is submitted for processing and may be paid or returned. Submission for clearing is a processing stage and does not necessarily mean that the funds have been finally collected or made available.

Used to track deposited cheques, investigate processing delays and distinguish cheques awaiting clearance from confirmed collections.

A company deposits a customer’s cheque for AED 8,000. It remains pending while the banks process it and is marked collected only after confirmation of payment.

Prevents pending cheque proceeds from being mistaken for confirmed available cash.