Read the following paragraph and answer the following questions.
In many towns and cities representatives of all banks meet on each day to settle what each bank has to pay to the other and receive from the other. Cheques that have been verified are handed over to each other. One of the banks works as the Clearing Bank where all the banks have an account. The payments and receipts between banks are done by this Clearing Bank.
In the present system, all banks and most of their branches are linked by computers. All deposit holder accounts and their signatures can be accessed by the branches anywhere. Hence representatives don’t have to meet nor do banks have to send cheques to the outstation branches. The transaction between one bank and another is done through interlinked com-puters. This makes the whole system work faster and in an easier manner.
1. Who meet on each day?
2. What did they exchange?
3. What is the work of Clearing Bank?
4. What is the novelty in the present system?
5. What is the result of this?
