What Is The Full Form Of CLG In Banking?
CLG full form in banking is Clearing (in regards to transactions and funds). Clearing in banking refers to the process of settling financial transactions between banks or financial institutions. When a customer of one bank makes a payment to a customer of another bank, the banks need to transfer funds between each other to complete the transaction. This process is known as clearing. There are several ways that banks can clear financial transactions, but one common method is through a clearinghouse. A clearinghouse is a financial institution that acts as an intermediary between two parties in a financial transaction, facilitating the exchange of funds and ensuring that both parties have fulfilled their obligations.
What Else Should You Know About CLG?
Clearing can involve the exchange of physical documents and instruments, such as checks or bills of exchange, or it can be done electronically. In either case, the goal of clearing is to ensure that all parties involved in the transaction are properly credited or debited for the funds that are exchanged. The clearing is an important part of the financial system because it helps to ensure the smooth functioning of financial markets and the settlement of transactions between banks and other financial institutions.