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The Reserve Bank of India has asked banks to fix charges on a cost-plus basis for cheques valued above Rs 1 lakh and cleared through speed and outstation cheque-clearing routes. Last year, the RBI had given banks the freedom to determine collection charges for such cheques, subject to the charges being levied in a fair and transparent manner.
However, the banking regulator has come across instances of banks levying charges that are pegged at an arbitrary percentage of the cheque's value. This is a violation of the Payment and Settlement Systems Act.
In a notification, the RBI said: “Banks which have fixed their service charges for outstation or speed clearing for instruments valued above Rs 1 lakh as a percentage to the value of instruments, are, therefore, advised to review the same and fix the charges on a cost-plus basis.”
The RBI said banks should notify their customers about the revised service charge structure for cheque clearing.
Meanwhile, the central bank has also issued guidelines for clearing of cheques with no formal clearing-house to ensure faster realisation of cheques and better customer service.
The RBI said banks must put in place arrangements to ensure that the instruments drawn on other banks are delivered or exchanged at a mutually decided place and time each working day. While doing so, banks must ensure that the cheque's fate is known on the same day.
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