DBOD.No. BC.16/09.07.007/97-98

February 27, 1998

Phalguna 8, 1919 (Saka)

The Chairmen/Chief Executive Officers of Commercial Banks

Dear Sir,

Electronic clearing service (credit clearing)

Please refer to our circular letter DBOD.BC. No. 68/09.07.007/96-97 dated 23rd June 1997 in terms of which the coverage under the above scheme operating at the four metropolitan cities was extended to four more centres viz. Ahmedabad, Bangalore, Hyderabad and Pune, with effect from 1st July 1997. On a review, it has been decided to extend the ECS (Credit Ceearing) Scheme to eight more centres viz. Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Kanpur, Nagpur, Patna and Thiruvananthapuram with effect from 1st July 1998. With this the scheme would cover all centres where Reserve Bank of India manages the Clearing Houses. Simultaneously it has been decided to increase the limit on the transaction value under the ECS (Credit) Scheme from the present Rs.50,000/- to Rs. 1,00,000/-

(Rs. one lakh only) with effect from 1st July 1998. Banks are requested to please bring this development to the notice of the corporate customers issuing large number of dividend payments, etc. and impress upon them to avail of the benefit under the ECS (Credit Clearing) facility.

2. Consequent to the above development, changes may please be made in paragraph 20 on page 6 and paragraph 21 (record 3) on page 7 and also Appendix VII (form No. E4) on page 30 of the "Procedural Guidelines of Electronic Clearing Service (Credit Clearing), June 1997", copies of which have already been made available to you.

yours faithfully,

(D.V. Jhaveri)

General Manager