Mumbai: The Reserve Bank of India (RBI) on Tuesday reiterated the need for banks to credit and debit local cheques on the same day, or the next day at the latest, of their presentation in clearing.
The central bank said banks must formulate their cheque collection policies in line with the orders of National Consumer Disputes Redressal Commission. According to the recommendations of the commission, banks should also allow withdrawal of money on the same day or within an hour of the next working day’s start of business after a cheque has been presented for clearing.
The collection of cheques drawn on state capitals, major cities, and other locations should be between 7, 10 and 14 days, respectively.
In case of a delay, banks will have to pay interest for the period of the delay. Banks cannot also decline collection of outstation cheques that are presented.
Under the recommendations, it is also mandatory for a branch manager to provide a complete copy of the bank’s cheque collection policy if a customer asks for it.