Banks should indicate time frame for cheques collection: RBI
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Last Updated: Thursday, November 12, 2009, 23:23
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 country.

"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 India-Vision 2009-12.

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 and dissemination.

"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 Denominated Instruments.

It also said that charges levied for offering various payment products will be constantly reviewed.

Bureau Report

First Published: Thursday, November 12, 2009, 23:23

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