USD And International Check Acceptance In India

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USD and International Check acceptance in India


Indian Banks offer services ranging from financing, Opening bank accounts, Credit Debit Card processing, and cheque/Check realization to name a few.

We all know that Indian banks accept local checks. These are the cheques that are issued by the account holders at any Indian Bank. Indian banks also accept checks that are issued by account holders of non-Indian banks. These checks are called foreign checks. At this point in time, most of the foreign checks are USD checks. That means the bank that has the right to approve the financial transaction is based in the USA.

The processing of any international check is different from the processing of a local cheque in India. For the local check, the banks co-ordinate locally in India to realize it. For any foreign check that is issued in a different currency like us to Euro, USD, Pounds etc. that check needs to be sent to the concerned country for its realization. This requires a bigger time frame between the deposit of a check and the final cash availability in the customer’s account.

The Reserve Bank of India has advised the banks to create a standard operational process to accept International checks. Bank has been suggested to create their policies on the mode of collection and charges etc.


  • Cash Letter Arrangement
  • Direct Collection Arrangement
  • Final Credit Services
  • Check21

The time frame and the cost involved in realizing an international check in India varies depending upon the modes as stated above. This means technically any legal check that has been issued by a US-based Bank of India based company or a person can be deposited in the Indian Bank account. Various International check modes include demand draft, Personal checks, Cheque issued by businesses, Bankers cheque,¬†Traveller’s cheque and electronic cheque(Check21) ¬†are accepted. Indian Banks widely accept a physical copy of checks printed on legal check paper and printed with magnetic ink. Few of the above-mentioned notes are faster than others. Depending on the customers choice they can request the bank to choose any of the above-mentioned methods. Few of the above-mentioned modes are faster than others. In most of the

In most of the cases, If The USD check if deposited correctly at the Indian Bank should clear within a 45 days time frame. This obviously includes the cooling off period. As the Global banking system has to follow different legislation and regulations this 45 days time frame may go higher sometimes. The final credit services Mode Appears to be one of the fastest available options for realising a USD check deposited in India.

This may involve a cooling off period which is the risk mitigation step implemented by the Indian and the Overseas Bank. After the cooling off period, the funds are released into the bank account of the customer located in India.

Indian banks may ask for additional documents at the time of accepting checks these documents may include the purpose of the payment and underwriting from the depositor.

Reference RBI India Website

Disclaimer:- This article is only for information purpose. It should not be considered accurate. For the most updated and accurate information visit the banks website of the RBI website.

Bankim Chandra
Bankim Chandra
Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.