DELAY
IN RE-PRESENTATION OF TECHNICAL RETURN CHEQUES AND LEVY OF CHARGES FOR SUCH
RETURNS
Notification:RBI/2012-13/493
DPSS.CO.CHD.No. 2030/03.06.01/2012-2013
DPSS.CO.CHD.No. 2030/03.06.01/2012-2013
Dated: 7/05/2013
- As you are aware, banks are expected to indicate the timeline for realisation of local/outstation cheques in their Cheque Collection policy(CCP) and charges for cheque returns to be levied in an upfront manner with due prior notice to the customers as enumerated in RBI 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.
- However, recently, instances have been brought to our notice where banks are
(i) levying cheque return
charges even in cases where customers have not been at fault in the return and;
(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.
- It is, therefore, considered necessary to streamline the procedure followed by all banks in this regard. Accordingly, banks are advised to adhere to the following instructions with immediate effect:
i. 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.
ii.
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.
- 4 Banks are accordingly advised to reframe their CCPs to include the procedures indicated in paragraph 3(i) and 3(ii) above, and may note to give publicity to their revised CCPs for better customer service and dissemination of information.
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
|
