RBI asked to clarify stand on delay in clearing cheques by banks

RBI asked to clarify stand on delay in clearing cheques by banks
PTI
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First Published: Sun, Oct 21 2007. 10 35 PM IST
Updated: Sun, Oct 21 2007. 10 35 PM IST
The National Consumer Commission has asked the Reserve Bank of India (RBI) to clarify its stand over the time taken by banks to clear outstation cheques. The commission was hearing a petition, which said delays in clearing cheques caused a loss of more than Rs600 crore to consumers every day.
“RBI has produced on record a chart indicating that the banks take approximately 14 days for the collection of cheques, few banks take even more than 14 days’ time,” the commission bench of justice M.B. Shah and member Rajyalakshmi Rao said.
“During this period, the question arises with regard to giving credit to the person in whose favour the cheque is issued, and to reduce or avoid delay in giving such credits, what steps could be taken ?”
Earlier, RBI furnished a revised cheque collection policy, submitted to it by 35 banks, along with a chart clarifying that local cheques were cleared to the named persons as soon as the debit entry was made.
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First Published: Sun, Oct 21 2007. 10 35 PM IST