Today Reserve Bank of India, DPSS has issued a clarification
on Dishonour of electronic funds transfer for insufficiency of funds in the
bank account.
The Press Release can be accessed @ RBI Press Release
The clarification was necessary, as the general
market opinion was that on ‘Dishonour of electronic funds transfer for
insufficiency of funds in the bank account’, equal protection as under penalties
stipulated for dishonor of cheques under the Negotiable Instruments Act, 1881,
were not available
Through this clarification, RBI has informed
that electronic funds transfer are on par with the penalties stipulated for dishonor
of cheques under the Negotiable Instruments Act, 1881.
This clarification should now encourage
migration of Loan Payments from the paper-mode to electronic mode.
It is to be noted, in case of electronic funds transfer
i.e Electronic Clearing Services-Debit, the Sponsor Bank can generate the
requisite reports in case the ECS transaction is ‘returned.’
As everything moves electronically, the data
can be exchanged quickly amongst the various participants in the process.
For an interesting article on the dishonor of
cheques under the Negotiable Instruments Act, 1881, please refer here NI ACT - Dishonor of Cheques
4 comments:
i would like to know what is the penalty on a bank if an neft credit is delayed. how are the banks accountable.
Hi,
From when it is going to get implemented???
HI Partha,
The same has already been implemented. RBI has just issued an clarification.
Hi,
pls refer to Point No 14, in the enclosed document
http://www.rbi.org.in/scripts/FAQView.aspx?Id=60
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