The Reserve Bank of India (RBI), on Monday, asked banks to reframe their cheque collection policies (CCP) to include compensation payable for the delayed period in the case of collection of local cheques.

“No rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate shall be paid for the corresponding period of delay,” said the RBI in a notification to chairmen and managing directors of all banks.

As per an earlier circular, which was issued on November 24, 2008, the RBI had asked banks to permit customers the usage of the shadow credit afforded to the customers’ account immediately after closure of relative return clearing of the local cheques.

The RBI had also said that “In any case, withdrawal would be allowed on the same day or maximum within an hour of the commencement of business on the next working day, subject to usual safeguards.”

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