You no longer need to be a high networth client or a  businessman to use at par facilities of the bank. UTI Bank has now launched at par facility for all its savings account holders.

Currently, cheques are applicable to only that city where the account is maintained. If a customer has to collect or make a payment outside his city then he will have to use either a cheque collection facility or a draft respectively. Under the at par system, cheques can be presented at the local clearing itself, wherever UTI Bank branches are present.

This facility is currently offered only by private and foreign banks to high networth and some corporate clients. Corporate clients and current account customers are, however, charged for this service.

"This will save the customer a lot of time and money. Customers had to wait anywhere from one to three weeks for the money to be cleared into his account after he deposits the cheque. He can now receive the money immediately as it will be cleared through the local clearing.

"Also if someone pays the customers it will be directly credited through the local clearing wherever UTI Bank branches are present," Hemant Kaul, senior vice-president, said.

Customers have to pay courier charges and commission charges to the bank where he deposits the outstation cheques currently. These charges could be anywhere from Rs 15 to Rs 25 per instrument.

"This facility will now make demand drafts obsolete. Though it will cannibalise on the remittance income -- draft issuance -- the bank will gain from additional customers," Kaul pointed.

UTI Bank has launched the at par cheque facility for payments up to a ceiling of Rs 50,000 a day, free of cost, for all its savings bank customers in 78 cities across the country where it is present.

The at par cheques will be payable through all three modes of payment  - in cash, by transfer and through clearing. All new cheque books to be issued by the bank will be at par cheque books.