Everyone in India uses banking services to move his financial cycle whether he uses the bank’s credit cards or the cheque facility. So, the banks have certain abbreviations or terms they usually use in their day-to-day work. You must have gone through one such short form that is CLG and it is usually used in passbooks or bank statements. So, the full form of CLG is Clearing House Transactions in the terms of banking. It is the customer’s right to know the CLG Full Form and it is associated with the deposits made through cheques. It is reflected either in the bank statement or the passbook. Let’s know more about this term and see what it indicates.
When Does CLG Appear in Passbook?
You might have seen this term in your passbook when you update it from the bank. This term indicates that the cheque has been cleared from the bank’s end and the amount has been credited to your account. You will understand the meaning of this term better once from the example given below:-
Suppose you have an account with SBI and you receive a cheque of the HDFC bank of a certain amount. You have deposited that cheque to your bank and want it to be cleared. Now, the SBI will ask the HDFC bank for the amount that is mentioned on the cheque and then it will credit the same account to your account. This whole settlement process is known as clearing and the CLG indicates that your HDFC cheque has been cleared you have deposited recently.
The teams of the private banks and the Reserve Bank of India maintain clearing houses and there are 1150 cheque clearing houses in India. The clearing houses settle the transactions related to cheques of different banks. You might have noticed the CLG term printed beside your passbook in the banking statement.
Now, you are aware of the CLG Full form that is clearing. This term is usually used in banking statements or passbooks. It indicates that the cheque of another bank you have deposited to your bank has been cleared and the amount has been credited. But now the banks are converting the CLG system to the electronic mode and it will be more secure. Now the people will have their money credited to their account much faster. So, that’s all about the term CLG or Clearing that appears in your passbook or bank statement.