What is CLG Full Form in Banking?
The customer is entitled to know the full form of the CLG and it is related to the amount deposited by cheque. It is displayed either in a bank statement or in a passbook. Everyone in India uses banking services, be it a credit card or a bank check. Consequently, banks have some abbreviations that they usually use in their daily work.
You must have gone through such a short form. It is commonly used on a passbook or bank statement. Thus, the full form of CLG is Clearing House Transaction in banking terms. Let’s learn more about this term and see what it means.
CLG means clearing, that is, the process accompanied by the issuance or presentation of a check issued by another bank.
When does CLG appear in the passbook?
A Collection Letter of Guarantee (CLG) is not a transaction that appears in a passbook.
The CLG is a document issued by a bank on behalf of a buyer (importer) to guarantee payment to a seller (exporter) for goods or services provided. It is typically used in international trade transactions and is not directly related to the account of an individual or business.
Therefore, the CLG does not appear in a passbook, which is a record of the transactions that occur in an individual or business bank account. The passbook records deposits, withdrawals, and other account activities, but it does not include information about transactions related to CLGs.
There are 1,150 check clearing houses in India, and they are supported by associations of commercial banks and the Reserve Bank of India. Settlements on transactions involving checks from several banks are handled by clearing houses. On your bank statement, you could see the CL displayed next to your passbook. Yes. Surely saw that word.
Additional meanings of CLG
|CLG||Certified Local Government|
|CLG||Corporate Learning Group|
|CLG||Civilian Labor Group|
|CLG||Combat Logistics Group|
You must now be aware of CLG’s complete name. This phrase is frequently used in passbooks or banking statements. It means that the cheque from another bank that you deposited in your account has cleared and the money has been credited. However, the bank today C.L. Yes. The system will be more secure if switched to electronic mode. Now, their funds will be deposited into customers’ accounts more quickly. Thus, this C.L. Yes. Or think of the term clearing that you see on your bank account or passbook.
Q1: What is CLG in the cheque?
Ans: CLG on a cheque indicates it’s being cleared through the clearinghouse system, ensuring funds are transferred between accounts.
Q2: What is speed CLG charge in the Cheque?
Ans: Up to 10,000 INR, the RBI charges Rs 50; from 10,000 INR to 1,00,000 INR, the RBI charges Rs 100; and above 1,00,000 INR, the RBI does not permit banks to charge more than Rs 150 per check for rapid clearing over Rs 1 lakh.
Q3: Why was my money debited to CLG?
Ans: If your money was debited to CLG, it could be due to a Collection Letter of Guarantee issued by your bank for a transaction.
Q4: How can I obtain a CLG?
Ans: To obtain a CLG, you will typically need to provide certain documents to the bank, such as the purchase contract, invoice, and bill of lading. The bank will review these documents and issue the CLG if the conditions are met.
Q5: What is the role of a clearing house in financial transactions?
Ans: A clearing house is a financial institution that facilitates the settlement of financial transactions between banks or other financial institutions. Its main function is to clear and settle transactions, including securities, derivatives, and other financial instruments.