Outstation Cheque Collection – RBI Circular

RBI in it’s Circular dated 8th Oct,’08 has issued norms for Charges for Outstation cheque collection.

RBI has mandated that banks must follow the following guidelines for Charges:
– Up to Rs. 10,000                     – not exceeding Rs. 50 per instrument
– Rs. 10,000 to Rs. 1,00,000      – not exceeding Rs. 100 per instrument
– Rs.1,00,001 and above            – not exceeding Rs. 150 per instrument

The above charges will be all inclusiveNo additional charges such as courier charges, out of pocket expenses, etc., should be levied from the customers.

The above charges are applicable only to transactions originated and payable within India.

Reserve Bank has also directed drawee banks to use electronic modes like RTGS/NEFT to remit proceeds to the collecting bank branch to reduce the clearing cycle and to promote electronic modes of payment. Further Banks may make increased use of Speed Clearing and National Clearing facilities for providing efficient service.

NOTE: The provisions of this circular shall not be applicable to cash handling charges levied by banks for handling large value cash transactions.

RBI has directed that no bank should refuse to offer the products to its customers or decline to accept outstation cheques deposited by its customers for collection. View the Circular here.

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