!! Delays in Cheque Clearing-Switch over to ePayments!!

!! Delays in Cheque Clearing-Switch over to ePayments!!

Numerous complaints have been lodged by bank customers, with various regulators, complaining delay in Collection of Cheques.

During August 2006, a case was filed before National Consumer Disputes Redressal Commission, New Delhi (the Commission) under the Consumer Protection Act, 1986, inviting attention to the delays in cheque clearing and, specifically, to the issue of float in local and inter-city clearing. Admitted in public interest as Case No. 82 of 2006, the complaint had named Reserve Bank of India (the Bank) and all Scheduled Commercial Banks (the banks) as respondents and sought adequate compensation by way of interest for delay in collection.

A number of affidavits were filed by the Bank and by the banks at various points of time and the case was finally disposed off by the Commission on August 27, 2008, with the Commission observing that the Reserve Bank of India, with its wide range of powers under the Payment & Settlement Systems Act, 2007 would try to control the float, if any, arising due to delay in collection of outstation cheques. During the course of hearings, orders were passed by the Commission culminating in the final order on timeframe for collection of outstation cheques' which is available @ http://www.ncdrc.nic.in/CC820605.htm.

the Reserve Bank of India (RBI) has reiterated that banks must reframe their cheque collection policies (CCPs) covering local and outstation cheque collection as per the timeframe prescribed by the commission.

Reserve Bank of India, vide its Lr.Dt.02/06/2009, the guidelines advised vide its Lr.Dt.24/11/2008, be followed. Specifically, the Reserve Bank of India (RBI) has reiterated that banks must reframe their cheque collection policies (CCPs) covering local and outstation cheque collection as per the timeframe prescribed by the National Consumer Disputes Redressal commission.

The complete notification, can be accessed at http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CIR020609.pdf

My appeal to all bank customers, is to switch over to ePayments, to avoid delays in receipt of the funds due to them.

Enjoy and Spread, the Magic of ePayments