Mumbai, July 20: In order to reduce the level of outstanding entries in Clearing Adjustment Account (CAA), Reserve Bank of India has permitted them to net off such entries with differences upto Rs 500 and outstanding for three years as on March 31, 2003, as one time measure. The level of outstanding entries continues to be high and since this is a fraud prone area, it is imperative for banks to adjust the old pending entries in the CAA (of banks pertaining to inter-bank accounts were such differences are likely to occur), RBI said in a notification here today.
While reviewing the position of progress made by banks in reducing the outstanding entries in their CAA, it has been observed that entries of smaller values form a significant portion of the old outstanding clearing differences and pose practical difficulties in reconciliation, the apex bank said.
Banks may net off all entries representing clearing differences "receivable" against entries representing clearing difference "payable" of amounts less than Rs 500 each which are outstanding in the CAA for more than three years as on March 31, 2003, it said.
The service or nodal branches may net off the outstanding entries in the clearing differences account and thereafter transfer the net position to their head office, RBI added.
Bureau Report