Reserve Bank of India (RBI) instructs banks to levy uniform fee for collection of high value cheques
May 11, 2012
Some banks in India are levying charges as an arbitrary percentage to the value of the instrument as service charges for cheque collection
RBI has given freedom to banks in January 2011, to determine collection charges for cheques valuing above Rs. 1 lakh cleared through Speed Clearing and Outstation Cheque Clearing mechanism subject to such charges being levied in a fair and transparent manner. The term fair and transparent manner, inter-alia, included fixing the service charges on a cost-plus basis and not on the basis of an arbitrary percentage to the value of the instrument.
RBI has instructed banks, which have fixed their service charges for out-station/speed clearing for instruments valuing above Rs. 1 lakh as percentage to the value of instruments to review the same and fix the charges on a cost-plus basis.
Banks have been advised to ensure that collection charges fixed for instruments valuing above Rs. 1 lakh is lower under Speed Clearing vis-a-vis Out-station Cheque Collection so as to encourage the use of Speed Clearing.
CLICK FOR MORE FEATURES & STORIES