You must come across this article looking for detailed information about ‘CLG Full-Form.’ You might have heard this word in passbook, banking and in different places related to banking. Luckily, you have landed in the right place. There is no doubt. Every bank has a different way of working differently.
To be an instance, CLG is a term that is used in the banking sector. This term is often related to cheques. To explain this, we have added this article for providing all the related information of this term to our readers.
We have added every detail here. You can have a look in detail below.
CLG Full-Form in Banking
You must have often come across the word ‘CLG.’ in the banking sector. The CNG Full-Form in banking is clearing. CLG is generally associated with the payment method ‘Cheque.’ For example, if you see CLG in any of your transactions, then it is generally meant for cheque clearing.
For example, just suppose you have received a cheque from any person, and you have deposited that cheque in your bank. Once it gets deposited, the cheque will get sent to the depositor bank for clearing.
Now, the issuer bank will verify the cheque and process the clearing amount. Once the cheque gets processed, the amount automatically will get credited to the beneficiary bank account.
The time between depositing the cheque to the bank and getting the amount credited by the issuer bank is all that means ‘clearing.’ This is all you need to know about CLG.
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History of Cheque (Early 1600)
For instance, the utilization of cheques comes in the early century 1600 in England. The payee to whom the cheque was issued has to visit the drawer bank to get the funds into their bank account. Before issuing the funds, the bank verifies the signature, date, and transaction amount before it gets credited to the beneficiary bank account.
In 1810, The Suffolk Bank started their first cheque clearing house in Boston. But, as per the latest and modern fund transfers techniques. The usage of cheques drastically drops. There is hardly 1% of the population using the cheque system.
Frequently Asked Questions
You must be having some queries? No worries, we have added a few of them here.
What does the CLG mean in the banking transaction?
CLG is generally associated with the payment method ‘Cheque.’ For example, if you see CLG in any of your transactions, then it is generally meant for cheque clearing.
Do I need to worry about CLG transactions?
No, it is all about clearing transactions. You do not have to get worried about it.
Here we come at the end. We are living in a modern era, but still, some people prefer using the cheque system as their safest mode of payment. But, most of them do not know the meaning of CLG in the banking transaction.
Thus, we have added this article to provide enough information on this term. We hope this article helps.