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UCBs to use ‘at par’ cheque for their own use: RBI

The RBI has also said that banks can use at par cheque facility for walk-in customers against cash for less than Rs. 50,000 per individual.

October 22, 2013 2:28 IST | India Infoline News Service
The Reserve Bank of India (RBI) on Tuesday has advised all urban co-operative banks (UCBs) to use the ‘at par’ cheque facility only for their own use and for their account holders who are KYC compliant provided that all transactions of Rs. 50,000 or more should be strictly by debit to the customer’s account.
The RBI has also said that banks can use at par cheque facility for walk-in customers against cash for less than Rs. 50,000 per individual.
In order to use ‘at par’ cheque facility in the above manner, UCBs should maintain records pertaining to issuance of ‘at par’ cheques covering inter alia applicant’s name and account number, beneficiary’s details and date of issuance of the ‘at par’ cheque.
Banks should also maintain sufficient balances/drawing arrangements with the commercial bank extending such facility for purpose of honouring such instruments.
UCBs should also ensure that all ‘at par’ cheques issued by them are crossed ‘account payee’ irrespective of the amount involved.
UCBs are advised to make use of more efficient means of remittances for the customers like NEFT or RTGS by providing such services directly or by becoming sub-members of banks providing such services as per regulations in this regard issued by RBI from time to time.


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