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.”
Keywords: cheque collection, RBI
I had taken up the this matter with RBI vide my letter dated 22.11 2011 after I learnt that there were several complaints from customers about delays in local cheque clearance and without any compensation for the delayed period.
I was vigorously following up with RBI since then.
RBI has not issued this circular on it's own.
It may be noted that the banks reframed their Cheque Collection policies (CCP) after RBI in it’s Master Circular on Customer Service in banks No. RBI / 2009-10 / 57 DBOD.No.Leg. BC.9 /09.07.006/2009-10 dated July 1, 2009 advised banks to comply with the final order on 'timeframe for collection of outstation cheques' passed by the National Consumer Disputes Redressal Commission in case no. 82 of 2006. The decision came on 28th July 2008.
However till date none of the banks had provided for compensation for delay in local clearing cheques. They were denying the compensation on the spacious plea that RBI itself has not stipulated it.
RBI also did not notice it on it's own and did not do anything as mentioned above.
I will be failing in my duty if I do not thank all the officials of RBI who were handling this matter and who handled it in a positive and constructive manner without any hostility and adversarial attitude and therefore I thank them profusely.
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