Cheque Collection Policy (CCP) – Immediate credit of Local / Outstation Cheques
Regional Rural Banks ( RRB’s)
Today Reserve Bank of India, Rural Planning and Credit Department, has released a Notification, stating the RRB’s Cheque Collection Policy should also
- include instructions on immediate credit for local/outstation cheques
- in addition to the aspects of time frame for collection of local/outstation instruments
- and interest payment of delayed collection.
The RBI, RPCD Notification No is RBI/2009-10/387 – RPCD.CO.RRB.BC.No.65/03.05.33/2009-10, dt. April 8, 2010 and is addressed to – The Chairman / All Regional Rural Banks (RRBs)
Below is a sample of few Banks Policies on Cheque Collection Policy (CCP)
– Immediate credit of Local / Outstation Cheques
QUOTE – CITI BANK
a. Immediate credit for local/outstation cheques
Citibank would provide a facility of immediate credit for local/outstation cheques upto Rs. 15,000/- to customers (other than those who avail cash management facilities with the bank) based on customer request.
This facility would be provided to customers who have an account with the branch for a period of more than 1 year. Further Citibank should be satisfied about the proper conduct of the account and the customer should meet the bank’s credit considerations (wherever applicable).
Approval Process – Customers could request the Branch Manager, Branch Service Head or the
Relationship Manager for immediate credit of their Cheques. Requests would be approved internally by the Branch Manager or the Branch Service Head after considerations of the parameters as mentioned above.
UNQUOTE – CITI BANK
QUOTE – BANK OF BARODA
Immediate Credit of Outstation Cheques
Immediate credit of local as well as outstation cheques upto Rs.15,000/- (as per bank’s extant guidelines) is provided to the customers who are maintaining satisfactory accounts against nominal service charges. In the event of cheques being returned unpaid, the customer will have to pay interest for the period for which funds are utilized.
UNQUOTE – BANK OF BARODA
QUOTE – AXIS BANK
Policy on Collection of Outstation Cheques
Immediate credit up to Rs. 15,000/- (maximum limit outstanding per account at any one point of time) will continue to be given for only those outstation cheques that are drawn on Axis Bank centres, at the sole discretion of the Branch Head after carefully verifying the satisfactory conduct of the account, creditworthiness of the customer and the genuineness of the need of the customer.
The facility will be not be provided by default but will be extended upon a written request made by the customer.
Rs. 250 will be charged in each such case as a flat fee over and above the normal collection charges.
In the event the cheque is returned unpaid, interest at commercial rate will be charged from the date of credit of the cheque till the date on which the amount is made good by the customer.
UNQUOTE – AXIS BANK
The above three examples have been collected from the respective Bank’s websites.
- These are just to present a cross- views of the practices prevalent in the Indian Banking Industry, regarding the Bank’s Policies on Instant credit of Outstation Cheques.
For complete details of Individual Bank’s Policies on Cheque Collection, visitors are requested to refer to the respective Bank Sites.