Time frame prescribed by the Reserve Bank of India to different banks for clearance
of local and outstation cheques.
Prescription of penalty by the Reserve Bank of India for non-clearance of cheques
in the prescribed time frame
Definition and explanation of terms 'local' and 'outstation' in the context of cheque
clearance by the Reserve Bank of India.
The Reserve Bank of India(RBI) has advised banks to frame their own Cheque Collection
Policies (CCPs) in respect of local and outstation cheques which should include
explicit mention of time frame for collection of both local and outstation cheques.
Banks have been further advised vie our circular DPSS.CO.(CHD)No.873/03.09.01/2008-09
dated November 24, 2008 to modify their CCPs in accordance with orders of the National
Consumer Disputes Redressal Commission in the case No.82 of 2006 on Delays in Cheque
Accordingly, for local cheques debit and credit shall be given on the same day or
at the most the next day of their presentation in clearing. Timeframe for collection
of outstation cheques drawn on state capitals/major cities/ other locations should
be 7/10/14 days respectively. This timeframe is the outer limit and credit shall
be afforded if the process gets completed earlier.
If there is any delay in collection beyond the prescribed period, interest at the
rate specified in the cheque collection policy of the bank, shall be paid. In case
the rate is not spcesified in the CCP, the applicable rate shall be the interest
rate on fixed deposits for the corresponding maturity. The link to the CCP of banks
has been hosted on our website www.rbi.orb.in.
Local cheques are those cheques that are drawn on branches within the jurisdiction
of the Local Clearing House. All other cheques would be outstation cheques. However,
there are cheques called multicity cheques and at par cheques which are payable
in all cities where the drawee bank has a branch irrespective of the city on which
it is drawn.
October 17, 2008
Provide the details of information, guidelines, circulars, notifications and regulations
made by Reserve Bank of India in chronological order for scheduled and private banks
operating in India, using OTP via phone IVR and mobile phone technology for any
kind of financial as well as monetary transactions to make it more convenient and
secured as a system.
RBI has issued the following guidelines to make card transactions more secured:
(i) Requirement of additional factor of authentication for online transactions except
Interactive Voice Response (IVR) transactions was enabled, vide, circular RBI /
DPSS NO. 1501 / 02.14.003 / 2008 - 2009 dated February 18, 2009. This circular has
been placed on RBI website at the link
(ii) Requirement of additional factor of authentication/validation extended to IVR
transaction with effect from February 1, 2011 vide, circular DPSS .CO. NO. 1503
/ 02.14.003 / 2010 - 2011 dated December 31, 2010. This circular has been placed
on the RBI website at the link
(iii) Requirement of online alerts to customers for all types of card transaction
at all channels irrespective of the amount was made applicable, vide, circular DPSS.
CO. PD. 2224 / 02.14.003 / 2010 - 2011 dated March 29, 2011. This circular has been
placed on the RBI website at the link
June 27, 2012
ATM transaction is failed due to technical/network problem. Amount is not dispensed
but account is debited in such circumstances. What are the rules for refund/credit
of such amount? Such refund should be made within how many days?
Banks have been advised by the Reserve Bank of India, vide, circular DPSS. PD. No.
2632 / 02.10.002 / 2010 - 2011 dated May 27, 2011 that:
1. Effective from July 1, 2011, banks have to reimburse the customers, the amount
wrongfully debited on account of failed ATM transactions within a maximum period
of 7 working days from the receipt of the customer complaint.
2. Banks have to pay customers Rs. 100/- per day for delays beyond 7 working days
from the date of receipt of the complaint.
If the complaint is not lodged within 30 days of transaction, the customer is not
entitled for any compensation for delay in resolving his / her complaint.
June 27, 2012
RIA No 4541/ 2013-14
1. The date of implement of new cheques with printed name and account of cheque
owner in the recognized Banks.
Reserve Bank of India vide its circular DPSS.CO.CHD.No./ 1112 / 04.07.05 / 2011-12
dated December 27, 2011 advised all banks providing cheque facility to their customers
to issue only 'CTS-2010' standard cheques across the country by September 30, 2012.
Account number in such cheques should be pre-printed for current account holders
and corporate customers and as far as possible to other category of customers.
However, printing the name of the account holder was not mandated by Reserve Bank
of India. RBI circular issued in this regard (DPSS.CO.CHD.No. 1832 / 04.07.05 /
2009-10 dated February 22, 2010) may be referred for the purpose.
Copies of the circulars referred to above are available on the website of Reserve
Bank of India under the following links :
February 17, 2014
2. The old cheques got issued prior to the date of implement of new cheques (i.e.
during the year 2006) from the recognized Banks are applicable or not after the
date of implement of new cheques.
Reserve Bank of India vide its circular DPSS.CO.CHD.No.133/04.07.05/2013-14
dated July 16, 2013 notified that cheques which are not complying with CTS-2010
standards would continue to be valid but will be cleared at less frequent intervals
from January 1, 2014 as detailed in paragraph 2(a) of the above referred circular.
Copy of the circular referred to above is available on the website of Reserve
Bank of India under the following link:
3. If not applicable, kindly arrange to intimate the date of disapplicable / disimplement
of old cheques along with instruction, if any.
Refer to reply 2 above