RBI asks banks to ensure prompt credit of cheques
By Our Banking Bureau | 02 Nov 2004
Mumbai: The Reserve Bank of India (RBI) has asked banks to formulate comprehensive and transparent policies for the immediate credit of outstation cheques.
In a circular to commercial banks, the RBI has also asked banks to set a time frame for the collection of local and outstation financial instruments and interest payment for delayed collections.
The RBI said that while it has been issuing instructions on the need for a comprehensive review of the technological progress in the payment and settlements systems, it has observed that the prescription of a single set of rules may not be appropriate. Therefore, banks have been encouraged to formulate their own policies, taking adequate care to ensure that the interests of the small depositors are fully protected.
The policy framed in this regard should be integrated with the deposit policy formulated by the bank in line with the Indian Banks Association's model deposit policy.
The policy should clearly lay down the liability of banks regarding interest payments due to delays arising from non-compliance to the standards. Compensation by way of interest payment, where necessary, should be made without the customer having to make a claim.
