town clearing

town clearing
Formerly, a special same-day clearing service for high value cheques drawn on accounts within the City of London and paid into another City account. All other cheques (known as country cheques) went into the general clearing system and took two or more days to clear. From 1995 the town clearing service ceased to be available. To guarantee a same-day transfer of funds, bank customers have to use the telegraphic transfer service.

Accounting dictionary. 2014.

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