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