RBI/2004/230
DIT(CO). 2314/06.15.39/2003-2004
June 05, 2004
All Clearing Houses managed by RBI, SBI, Associate
Banks & Public Sector Banks
Dear Sirs,
Debiting Clearing Settlement
Accounts of member banks towards transactions not related with clearing or on
unilateral basis
It is noted with serious concern
that despite instructions issued from time to time some clearing houses are
not following the accepted procedures relating to the management of the clearing
houses. It is being reported frequently that the banks managing clearing houses
are unilaterally debiting the clearing settlement account of the clearing house
members towards settlement of disputes which are pertaining to clearing settlements
by taking undue advantage of maintaining the clearing house member’s account.
Even disputes not related to clearing house settlements are also unjustifiably
being adjusted unilaterally in the clearing house member’s account by banks
managing the clearing houses.
2. The above action is unacceptable
and is clearly in gross violation of the Uniform Regulations & Rules for
Bankers’ Clearing Houses (URRBCH) – Rule 7 and not in keeping with the spirit
of clearing houses being voluntary association of bankers. Banks running the
clearing house have a dual role – that of managers as well as that of a member-participants.
Disputes that the manager may have as a participant with another participant
cannot be unilaterally settled by the manager using its powers as the manager
of the clearing house. This status is applicable under all circumstances and
irrespective of the nature of dispute.
3. The contents of this letter
may be brought to the notice of the clearing houses and its members forthwith.
4.Amounts under dispute debited
unilaterally to member bank’s accounts may be reversed immediately under advice
to us.
5.Please acknowledge receipt of
circular and also confirm having brought the contents of this letter to the
notice of all clearing houses being managed by your bank.
Yours faithfully,
Sd/-
(Arun Pasricha)
General Manager