Pass books must be issued by banks: RBI

Pass books must be issued by banks: RBI

“It has come to our notice that some banks are not issuing pass books to their savings banks account holders (individuals) and only issue a computer generated account statement even when the customer seeks the pass book facility. Banks are, therefore, advised to strictly adhere to the instructions,” the Reserve Bank of India (RBI) stated in a notification.

Under the existing rules, banks are expected to offer the pass book facility to all individual savings banks account holders.

In case banks offer the facility of sending a statement of account and the customer chooses it, banks must issue that on monthly basis.

Surprisingly, some private sector banks do not provide pass book facility. Meanwhile, in another notification, the RBI has asked banks to ensure that demand drafts for Rs 20,000 and above are issued with account payee crossing.

“Instruments with account payee crossing are required to be credited to the payee’s account and not paid in cash over the counter. However, some unscrupulous elements use demand drafts without any crossing for transfer of money as an alternative to settlement through cash,” the RBI said.

In view of the concerns raised, it said the RBI reiterates that banks shall strictly adhere to the instructions and not collect account payee cheques for any person other than the payee constituent. Banks may note that the above prohibition and relaxation shall also extend to drafts, pay orders and bankers’ cheques, the RBI notification added.