Check Clearing
Check clearing is the process by which a bank verifies and processes a check written by a customer. When a check is deposited, the bank sends it to the issuing bank to confirm that the funds are available in the account of the person who wrote the check. This ensures that the check can be honored and the funds transferred.
Once the issuing bank approves the check, the funds are transferred to the recipient's account. This process can take a few days, depending on the banks involved and the method of clearing. Efficient check clearing is essential for maintaining trust in the banking system and ensuring smooth financial transactions.