What is onus on a check?

This expedited process not only benefits the depositor but also the bank, as it streamlines their internal operations and reduces the risk of payment delays or errors.

An on-us check represents a unique financial instrument, characterized by its negotiability and the specific nature of its payment process. It involves a check being drawn on the very bank where it is subsequently presented for payment.

This process essentially eliminates the need for interbank transactions, as the funds are transferred within the same financial institution. For instance, if a check is issued by a customer of Bank of America and subsequently deposited at another branch of the same bank, it qualifies as an on-us check.

The primary advantage of an on-us check lies in its efficiency. Since the payment is processed within the same banking system, it tends to clear faster compared to checks drawn on and presented to different banks.

Moreover, the cost associated with processing an on-us check is generally lower than that of a check involving multiple banks. This is because the bank does not have to incur additional fees for interbank transfers or clearances.