What is CLG in Bank Statement?

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I use many bank services in my day-to-day life. Most of them are real-time electronic methods used to transfer money. You must have seen CLG in your passbooks or bank statements. There were many abbreviations I didn't know, CLG in bank statement was one of them. So, I asked my banker friend about it and he explained it to me very well. 

When any customer makes deposits through cheques, it is reflected in the bank statement or the passbook. The acronym indicates that the cheque has been cleared from the bank’s end. The amount has been credited to your account and will be visible soon after. Let me give an example of ‘What is CLG in bank’?

Assume that I have an SBI account and I have received a cheque from you. Your bank of choice is  HDFC. 

You will need to deposit a cheque in HDFC. Then HDFC  bank will clear the check. 

SBI will ask the HDFC bank for the amount that is mentioned on the cheque. 

When the amount is received by SBI, they will credit it to my bank account. 

The CLG in your bank statement will indicate that the HDFC cheque has been cleared. 

The full form of CLG is Clearing House Transaction in Banking. It is used by private banks and the Reserve Bank of India to clear cheques amongst the 1150 cheque clearing houses. 

The CLG meaning in bank statement will remain the same, even though the process is moving online. The record of fund deposit and credit will be shown in your e-statement. You can access this statement on the app or website of your bank.

This is all from my end on CLG in bank statement.

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After a cheque is deposited, you can notice an entry labelled as 'By CLG' in your passbook. However, what is CLG in bank statement? For the purpose of collecting funds and crediting your account, the deposited cheque is sent to the issuing bank through the Clearing House. This process is known as CLG, or clearing.

What is the Role of CLG Bank Statement?

A key component of the cheque-clearing cycle is the Clearing House. After being deposited, cheques are collected from several banks and forwarded to the originals. The Clearing House serves as a focal point, ensuring that cheques are sent to the appropriate banks for the repatriation of funds.

There are over 860 clearing houses in India. Six are run by Nationalised Banks, the Reserve Bank of India (RBI) is in charge of 14, and the State Bank of India (SBI) and its affiliates are in charge of 840. A bank must be a clearinghouse member in order to clear cheques using this system.

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What is DR in Bank Statement and Accounting Terms?

The CLG full form in banking stands for Clearing. It refers to the process of settling financial transactions between banks or financial institutions. It involves the exchange of funds, securities, or other financial instruments to complete transactions. Clearing houses or clearing systems are responsible for facilitating this process and ensuring that transactions are properly verified, reconciled, and settled. I hope you have understood what is the full form of CLG. 

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What is the need for a CLG?

CLG are a need as

• They mitigate risks in financial transactions

• Ensure secure settlement of funds

• Enhance operational efficiency by centralising transaction processing

What is a Clearing House, and what is its role in the Cheque Clearing Process?

A Clearing House is a financial intermediary that facilitates secure transactions between banks. In the Cheque Clearing Process, it verifies and processes checks, confirms fund availability, and coordinates between banks. It ensures efficient fund transfers, reduces fraud risk, and simplifies settlements, enhancing accuracy and security in check transactions.

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