Banks should indicate time frame for cheques collection: RBI
Mumbai: The Reserve Bank today proposed
fixation of time frame by banks for collection of local and
outstation cheques to tighten norms for payment system in the
"Banks need to indicate in their Cheque Collection
Policies (CCPs) the timeframe for collection of local and
outstation cheques, apart from other aspects advised to them
from time to time," RBI said in a draft on Payment Systems in
The CCPs need to be widely publicised and also published
in the respective banks’ websites, RBI said in the draft
seeking public comments by end of this month.
RBI also proposed that the CCPs framed by banks should be
made comprehensive in terms of scope, coverage, transparency
"It will be ensured that banks strictly operate within
the meaning and intent of the CCPs especially in regard to
timeframe for collection, grievance redressal mechanism and
penalties for non-conformity," RBI said.
RBI also said that it will frame guidelines for
collection of foreign-currency denominated cheques payable in
UK and locations that have significant volumes, in addition
to the timeframe specified for collection of US-Dollar
It also said that charges levied for offering various
payment products will be constantly reviewed.