Delay in re-presentation of technical return cheques and levy of charges for such returns


On May 7, 2013, Reserve Bank of India, DPSS vide Notification No :RBI/2012-13/493 DPSS.CO.CHD.No. 2030/03.06.01/2012-2013, issued clarifications regarding Delay in re-presentation of technical return cheques and levy of charges for such returns

The background RBI circulars are circulars no. DPSS.CO. (CHD) No. 873 / 03.09.01 / 2008-09 dated November 24, 2008 and DBOD.No.Dir.BC. 56 /13.03.00/2006-2007 dated February 2, 2007 respectively.

In the recent instances have been brought to RBI  notice where banks are

(i)           levying cheque return charges even in cases where customers have not been at fault in the return and

(ii)          (ii) delaying the re-presentation of the cheques which had been returned by the paying banksunder technical reasons.

Both of these issues result in unsatisfactory customer service. To increase the customer satisfactory levels, RBI has taken into its hands the need to streamline the procedure followed by all banks in this regard.

Accordingly, RBI has advised all banks part of the Indian Clearing System to adhere to the following instructions with immediate effect:

Cheque return charges shall be levied only in cases where the customer is at fault and is responsible for such returns.

The illustrative,but not exhaustive, list of returns, where the customers are not at fault are indicated in the annex.

Cheques that need to be re-presented without any recourse to the payee, shall be made in the immediate next presentation clearing not later than 24 hours(excluding holidays) with due notification to the customers of such re-presentation through SMS alert, email etc.

Though the above steps are a bit harsh on the bankers, in one way, Banks invited RBI’s wrath by increasing the levels of unsatisfactory customer service. And, for RBI customer service is paramount.

With majority of Indian Banks on CBS, it should not have been difficult to exclude ‘cheque return charges’, for technical returns.


Illustrative but not exhaustive list of objections where customers are not at fault

(Applicable for Instrument and Image-based Cheque Clearing as detailed in Annexure D to Uniform Regulations and Rules for Bankers’ Clearing Houses)



Code No.      Reason for Return


33               Instrument mutilated; requires bank’s guarantee

35               Clearing House stamp / date required

36               Wrongly delivered / not drawn on us

37               Present in proper zone

38               Instrument contains extraneous matter

39               Image not clear; present again with paper

40               Present with document

41                Item listed twice

42               Paper not received

60               Crossed to two banks

61                Crossing stamp not cancelled

62               Clearing stamp not cancelled

63               Instrument specially crossed to another bank

67               Payee’s endorsement irregular / requires collecting bank’s confirmation

68               Endorsement by mark / thumb impression requires attestation by Magistrate with seal

70               Advice not received

71                Amount / Name differs on advice

72               Drawee bank’s fund with sponsor bank insufficient (applicable to sub-members)

73               Payee’s separate discharge to bank required

74               Not payable till 1stproximo

75               Pay order requires counter signature

76               Required information not legible / correct


80               Bank’s certificate ambiguous / incomplete / required

81                Draft lost by issuing office; confirmation required from issuing office

82               Bank / Branch blocked

83               Digital Certificate validation failure

84               Other reasons-connectivity failure

87               ‘Payee’s a/c Credited’ – Stamp required

92               Bank excluded

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