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RBI asks banks to reframe cheque-related charges

Cheque return charges should be levied only in cases where the customer is at fault and is responsible for such returns

May 08, 2013 2:01 IST | India Infoline News Service
The Reserve Bank of India (RBI) on Tuesday has advised banks to reframe their cheque collection policies (CCPs) for better customer service and dissemination of information.

According to RBI, banks are expected to indicate the timeline for realisation of local / outstation cheques in their cheque collection policy and charges for cheque returns to be levied in an upfront manner with due prior notice to the customers.

In order to streamline the procedure followed by all banks, the central banks has advised all banks to adhere to the following instructions with immediate effect.

Cheque return charges should be levied only in cases where the customer is at fault and is responsible for such returns. Cheques that need to be re-presented without any recourse to the payee, should be made in the immediate next presentation clearing not later than 24 hours(excluding holidays) with due notification to the customers of such re-presentation through SMS alert, email etc.

However, recently, instances have been brought to RBI’s notice where banks are (i) levying cheque return charges even in cases where customers have not been at fault in the return and (ii) delaying the re-presentation of the cheques which had been returned by the paying banks under technical reasons. Both of these issues result in unsatisfactory customer service.

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