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Tuesday, Nov 02, 2004

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RBI asks banks to ensure prompt credit of cheques

Our Bureau

Mumbai , Nov. 1

THE Reserve Bank of India has asked banks to formulate comprehensive and transparent policies, for the immediate credit of outstation cheques.

In a circular to commercial banks, the apex bank has also asked them to set a time frame for the collection of local and outstation financial instruments and interest payment for delayed collection.

The central bank has said, that while it has been issuing instructions, in these areas, on a comprehensive review of the technological progress in payment and settlement systems , it has observed that prescription of a single set of rules may not be appropriate. Therefore, banks have been encouraged to formulate their own policies, taking adequate care to ensure that the interests of the small depositors are fully protected.

The policy framed in this regard should be integrated with the deposit policy formulated by the bank in line with the Indian Banks Association's model deposit policy.

The policy should clearly lay down the liability of the banks by way of interest payments due to delays for non-compliance with the standards set . Compensation by way of interest payment, where necessary, should be made without any claim from the customer

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