Review of Service Charges for Cheque Collection – Local, Outstation and Speed Clearing
Reserve Bank of India, DPSS has issued a Notification today, with wide reaching implications for the Cheque Collection Operations of Banks.
The Notification will be effective from 01/04/2011.
The Notification No is RBI/2010-11/377 DPSS.CO.CHD.No. 1671 / 03.06.01 / 2010-11 dt.January 19, 2011
The complete Notification can be accessed @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6228&Mode=0
The highlights of the Notification are: -
02) RBI will continue to protect the interest of Saving Bank account holders by mandating charges for smaller value transactions relating to saving bank accounts.
03) Freedom is specified to Banks, to determine charges for larger value transactions i.e. collection of instruments for credit to other types of accounts.
04) The charges so levied, should be fair and transparent.
05) Board of Directors has to approve the Service Charge Structure.
06) The services charges should specify the maximum charges that they would have to pay, including charges if any, payable to other banks.
07) Freeing of Service charges will hasten the movement from paper mode to electronic mode.
The Charges Table – Reproduced from Reserve Bank of India website.
(a) Service (Processing) Charges for Local Clearing (by Clearing Houses from Member Banks) –
System | Existing (Rs.) | Revised (Rs.) | ||
Presenting Bank | Drawee Bank | Presenting Bank | Drawee Bank | |
Clearing at MICR-CPCs | 1.00 | 1.00 | 1.00 | 1.50 |
Cheque Truncation | 0.50 | 0.50 | 0.50 | 1.00 |
(b) Service Charges for Outstation Cheque Collection –
Existing (Rs.) | Revised (Rs.) | ||
Service charge from all customers | Service Charge from Savings a/c customers | ||
Up to and including 10,000 | 50 | Up to and including 5,000 | 25^ |
Above 5,000 and up to and including 10,000 | 50*^ | ||
Above 10,000 and up to and including 1,00,000 | 100 | Above 10,000 and up to and including 1,00,000 | 100*^ |
Above 1,00,000 | 150 | Above 1,00,000 | Left to the banks to decide |
* No change.
^ All inclusive maximum amount chargeable by banks to the customers.
(c) Service Charges for Cheque Collection under Speed Clearing (by Collecting Banks from customers) –
Existing (Rs.) | Revised (Rs.) | ||
Service charge from all customers | Service charge from Savings a/c customers | ||
Up to and including 1,00,000 | Nil | Up to and including 1,00,000 | Nil* |
Above 1,00,000 | 150 | Above 1,00,000 | Left to the banks to decide |
* No change.
The implications of this Notification:
A) Hectic strategic sessions to draw up the new Service Charge Structure.
B) Minor Programming changes might be required, as almost all Banks are on Core Banking Solutions (CBS)
C) Frequent revision of Service Charges depending on the competition.
D) Accelerate the migration from Paper Mode to Electronic Mode.
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