👉 The cheque fluid, also known as the cheque clearing mechanism, is a crucial component of the banking system that facilitates the smooth and efficient transfer of funds between banks. When a cheque is drawn, the bank issuing it debits its account and credits the payee's account. However, to ensure that the transaction is processed accurately and promptly, a cheque fluid is employed to settle the difference between the bank's balance and the cheque's face value. This mechanism involves the bank transferring the excess amount (the difference) to another bank, which then deposits it into the payee's account. This process ensures that the cheque is cleared without delay, maintaining liquidity and operational efficiency in the banking system.
