Availability Schedule

Posted in Finance, Accounting and Economics Terms, Total Reads: 75

Definition: Availability Schedule

Availability Schedule is the time taken till the amount of the check deposited in a bank account is available for use by the account holder.

When first the check is deposited in the account of a holder, it usually takes some time to make available the amount to the account holder. Until the check amount is cleared, the checks are held. But, in order to avoid banks from using the funds at the customer’s expense; the central bank or government in various countries define the maximum time period for which the banks can hold the funds There is a limit put upto which the checks can be held and the availability schedule which is established by the Expedited Funds Availability Act in United States limiting the schedule and checks held time under different circumstances.

In India, the Reserve Bank of India uses Cheque truncation systems to decrease the availability schedule. The time till the amount is not cleared by the bank is called as availability float.

For Example: If suppose you sell your car for Rs 4 lakhs. If the customer gives Rs2 Lakh by cash and deposits the check of Rs2 lakhs in your account on 13th of the month. It will take till around 15th or 16th of the month until the amount will be available in your account. This time will be availability schedule.


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