Banks told to compensate cheque clearance delays

Banks have been asked to reframe their Cheque Collection Policies (CCP) to include compensation payable to customers for delays in collection of local as well as outstation cheques.

In a notification issued on Monday, the Reserve Bank of India (RBI) did not specify the rates to be paid for delay in realisation of local cheques. Compensation at prevailing savings bank interest rate should be paid to customers for the corresponding period of delay, RBI added.The apex bank clarified that banks are required to specify the timeline for realisation of local and outstation cheques in their CCP including compensation payable for delayed credit, if any.

Instances of delayed credit to customers’ accounts without compensation for the delayed period beyond the time line indicated in the CCPs, in respect of local cheques, have been brought to its notice, RBI stated.

However, on perusal of the CCPs and compensation policies of various banks, there is no mention on the compensation in respect of delay in the realisation of local cheques.

Further, RBI advised banks to give wide publicity to their revised CCPs through display board in branches and on their website for better customer service and dissemination of information. A copy of revised CCPs formulated may also be forwarded to RBI, it added.