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RBI issues norms on dishonour of cheques from stock exchanges
Mumbai, June 26: In a move to streamline procedures, Reserve Bank of India today issued guidelines to banks in respect of dishonoured cheques from stock exchanges following recommendations of joint parliamentary committee (JPC).
Mumbai, June 26: In a move to streamline procedures, Reserve Bank of India today issued guidelines to banks in respect of dishonoured cheques from stock exchanges following recommendations of joint parliamentary committee (JPC).
Reviewing the norms, RBI in a notification said that it would cover all cheques dishonoured on account of insufficient funds and not only those relating to settlement transactions of stock exchanges.
This is pursuant to the investigation into the stock market scam by JPC, which recommended that specific guidelines need to be issued by RBI to all banks regarding the procedure to be followed by them in respect of dishonoured cheques from stock exchanges.
RBI said banks were already following the appropriate procedure to deal with dishonour of cheques and added that the paying bank should return dishonoured cheques presented through clearing houses strictly as per the return discipline prescribed and the collecting bank on receipt of such cheques should despatch it immediately to the payees/holders.
In relation to cheques presented direct to the paying bank for settlement of transaction by way of transfer between two accounts with that bank, it should return such cheques to payees/holders immediately.
RBI said data in respect of each dishonoured cheque for amount of Rs one crore and above should be made part of bank's MIS and concerned branches should report the same to their respective controlling office/head office.
Bureau Report
This is pursuant to the investigation into the stock market scam by JPC, which recommended that specific guidelines need to be issued by RBI to all banks regarding the procedure to be followed by them in respect of dishonoured cheques from stock exchanges.
RBI said banks were already following the appropriate procedure to deal with dishonour of cheques and added that the paying bank should return dishonoured cheques presented through clearing houses strictly as per the return discipline prescribed and the collecting bank on receipt of such cheques should despatch it immediately to the payees/holders.
In relation to cheques presented direct to the paying bank for settlement of transaction by way of transfer between two accounts with that bank, it should return such cheques to payees/holders immediately.
RBI said data in respect of each dishonoured cheque for amount of Rs one crore and above should be made part of bank's MIS and concerned branches should report the same to their respective controlling office/head office.
Bureau Report