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Cheques Hold-Time to be Reduced

Canada is changing rules related to financial institutions like banks releasing funds for deposited chques.

Under new guidelines, if a cheque has a value of less than $ 1,500.00, the hold on it for personal and small businesses will be reduced to a maximum of four business days, starting from the day after it was deposited, if it was deposited in person at a branch. If the cheque was deposited through a bank machine, then it will be a maximum of four business days, starting from the next business day. At present, most of the banks put a hold of between five to seven days.

If the cheque value is greater than $ 1,500.00, then the hold can be up to seven days after the day is deposited in person at a branch, and up to seven business days if the cheque is deposited through a bank machine.

Customers will also have access to the first $100.00 immediately if they deposit the cheque in person in a branch and the next business day if they deposit it through a bank machine.

Exceptions

The bank can make exceptions to these rules for a number of reasons, including if it believes the cheques might involve illegal activities, or if the customer or the issuer has had a history of bounced cheques.

The new rules are expected to take effect from August1, 2012.

 

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