Reserve Bank of India has issued a notification regarding delay in re-presentation of technical return cheques and levy of charges for such returns which is as follows:
RBI/2012-13/493
DPSS.CO.CHD.No. 2030/03.06.01/2012-2013
DPSS.CO.CHD.No. 2030/03.06.01/2012-2013
May 7, 2013
The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /Local Area Banks
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
All Scheduled Commercial Banks including RRBs /Local Area Banks
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
Madam / Dear Sir,
Delay in re-presentation of technical return cheques and levy of charges for such returns
As you are aware, banks are expected to indicate the
timeline for realisation of local/outstation cheques in their Cheque
Collection policy(CCP) and charges for cheque returns to be levied in
an upfront manner with due prior notice to the customers as enumerated
in RBI circulars no. DPSS.CO. (CHD) No. 873 / 03.09.01 / 2008-09 dated November 24, 2008 and DBOD.No.Dir.BC. 56 /13.03.00/2006-2007 dated February 2, 2007 respectively.
2. However,recently, instances have been brought to our
notice where banks are (i) levying cheque return charges even in cases
where customers have not been at fault in the return and (ii) delaying
the re-presentation of the cheques which had been returned by the
paying banksunder technical reasons. Both of these issues result in
unsatisfactory customer service.
3. It is, therefore, considered necessary to streamline the
procedure followed by all banks in this regard. Accordingly, banks are
advised to adhere to the following instructions with immediate effect:
-
Cheque return charges shall be levied only in cases
where the customer is at fault and is responsible for such returns. The
illustrative,but not exhaustive, list of returns, where the customers
are not at fault are indicated in the annex.
-
Cheques that need to be re-presented without any recourse
to the payee, shall be made in the immediate next presentation
clearing not later than 24 hours(excluding holidays) with due
notification to the customers of such re-presentation through SMS
alert, email etc.
4. Banks are accordingly advised to reframe their CCPs to
include the procedures indicated in paragraph 3(i) and 3(ii) above, and
may note to give publicity to their revised CCPs for better customer
service and dissemination of information.
5. The above instructions are issued under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
6. Please acknowledge receipt and confirm compliance.
Yours faithfully,
(Vijay Chugh)
Chief General Manager
Chief General Manager
Illustrative but not exhaustive list of objections where customers are not at fault
(Applicable for Instrument and Image-based
Cheque Clearing as detailed in Annexure D to Uniform Regulations and
Rules for Bankers' Clearing Houses)
Code No.
|
Reason for Return
|
33
|
Instrument mutilated; requires bank's guarantee |
35
|
Clearing House stamp / date required |
36
|
Wrongly delivered / not drawn on us |
37
|
Present in proper zone |
38
|
Instrument contains extraneous matter |
39
|
Image not clear; present again with paper |
40
|
Present with document |
41
|
Item listed twice |
42
|
Paper not received |
60
|
Crossed to two banks |
61
|
Crossing stamp not cancelled |
62
|
Clearing stamp not cancelled |
63
|
Instrument specially crossed to another bank |
67
|
Payee’s endorsement irregular / requires collecting bank's confirmation |
68
|
Endorsement by mark / thumb impression requires attestation by Magistrate with seal |
70
|
Advice not received |
71
|
Amount / Name differs on advice |
72
|
Drawee bank's fund with sponsor bank insufficient(applicable to sub-members) |
73
|
Payee's separate discharge to bank required |
74
|
Not payable till 1stproximo |
75
|
Pay order requires counter signature |
76
|
Required information not legible / correct |
80
|
Bank's certificate ambiguous / incomplete / required |
81
|
Draft lost by issuing office; confirmation required from issuing office |
82
|
Bank / Branch blocked |
83
|
Digital Certificate validation failure |
84
|
Other reasons-connectivity failure |
87
|
‘Payee's a/c Credited' - Stamp required |
92
|
Bank excluded |
