REVISION OF EXISTING POLICY
The Cheque Collection Policy has since been revised wef 13th November 2013. The revised Policy, covers the following aspects:-
· (A) ARRANGEMENTS FOR COLLECTION OF DOMESTIC CHEQUES. (CTS-2010 STANDARD CHEQUES AND NON-CTS -2010 STANDARD CHEQUES)
· (B) PROCEDURE FOR COLLECTION OF INTERNATIONAL CHEQUES/INSTRUMENTS
· (C) REASON FOR RETURN
· (D) TYPES OF SETTLEMENT PROCESSES IN OTHER COUNTRIES
Cheque Collection Policy (CCP) was
first formulated in 2005 and is reviewed annually, as per the guidelines issued
by Reserve Bank of India (RBI)/IBA/BCSBI
from time to time. The Policy duly approved by Bank’s Central Board shall be
read as Bank’s Cheque Collection Policy -2013.
Cheque Collection Policy document has been formulated as a comprehensive
document with transparency, covering following aspects, taking into account our
technological capabilities, systems and processes adopted for clearing
arrangements and other internal arrangements for collection through different
methods. The Policy takes adequate care to ensure that the interests of small
depositors are fully protected and this has been integrated with the Deposit
Policy formulated by the Bank in line with the IBA’s model policy on Collection
of cheques/instruments. The procedure for collection of domestic
cheques/instruments and international instruments have been placed in
Annexure-I & II respectively, which, inter alia, incorporate the following:
procedure for collection of cheques (local and Outstation).
of cheques between two banks and between CBS and non-CBS branches of other
time frame for collection of outstation/local cheques drawn on branches of the
for delayed collection for local/outstation cheques in a progressive manner
of cheques up to which immediate credit is to be provided.
Cheque Collection Policy covers following guidelines issued by the regulators
for smooth conduct of clearing cycle.
Cheque Clearing process under revised
scenario of CTS based clearing system:
Truncation System (CTS) is presently working at Northern grid in Delhi, Southern
Grid in Chennai and Western grid in Mumbai.
covered in Grid based CTS-2010 centres:
grid in Delhi covers Delhi and NCR (Delhi
Southern grid in Chennai covers Tamilnadu,
Andhra Pradesh, Kerala, Karnataka,
Orissa, West Bengal, North Eastern States, (covering Chennai, Hyderabad,
Bangalore, Thiruvananthapuram, Bhubaneswar, Kolkata and Guwahati circles).
Centres covered are Calicut, Trichur, Trivendrum, Ernakulam, Hubli, Mysore, Bangalore,
Belgaum, Bhubaneswar, Cuttack, Chennai, Thirunelvelli, Pondicherry, Tiruchirapalli,
Tirupur, Coimbatore, Madurai, Erode, Salem, Kolkata, Guwahati, Vishakhapatnam,
Hyderabad and Vijayawada.
grid covers Maharashtra, Goa, Madhya
Pradesh and Gujarat (Mumbai, Bhopal and Ahmedabad Circles). Centres covered are
Panaji, Solapur, Mumbai, Nasik, Kolhapur, Nagpur, Pune, Vadodara, Surat,
Bhavnagar, Rajkot, Ahmedabad, Anand, Raipur, Jabalpur, Gwalior and Bhopal.
of clearing in ECCS centre: All
Bank branches participating in ECCS clearing centres have been provided with
ECCS software and a server is located at Clearing House, where all bank
branches exchange their Cheques and also submit the data of Cheques presented
in clearing to Clearing House by removable storage devices. The Clearing House
has ECCS software of Clearing House module, which processes the data, received
from the member banks and generates individual bank’s report and settlement report.
The settlement bank makes settlement based on the ECCS report in accounts
maintained with the bank. All other provisions of Uniform Rules and Regulations
for Bankers’ Clearing House (URRBCH) issued by RBI are being adhered to by the
cheques would continue to be cleared through “Express Cheque Clearing System
for withdrawal of residual “non-CTS-2010 standard” cheques has been extended
from 31st July 2013 to 31st December, 2013.
1.6 Separate clearing session will be
introduced in the three CTS centres (Mumbai, Chennai and New Delhi) for
clearing of such residual non-CTS-2010 cheques (including PDC and EMI cheques) with
effect from 1st January 2014. This separate clearing session will
initially operate thrice in a week (Monday, Wednesday and Friday) upto 30th April, 2014.Thereafter,
the frequency will be reduced twice a week upto 31st October, 2014
and further to weekly (every Monday) from 1st November 2014 onwards.
SC/DDP automation has been implemented for collection of outstation cheques of
other banks where speed clearing system is not available in the clearing
IOI instrument is also now migrated to printing on “CTS-2010 standard”
Clearing System for collection of outstation cheques has been introduced by RBI
at all MICR centres. It has further been extended at non-MICR clearing centres
by RBI in a phased manner where automated clearing system is in vogue.
of Govt. cheque is under “paper to follow” system at CTS and other clearing centres.
has stipulated the compensation at the rate of savings bank interest rate for
delay in clearance of local cheques beyond the normal period.
return charges shall be levied only in cases where the customer is at fault and
is responsible for such returns. The list of reasons for return, where the
customers are not at fault are indicated in the Annexure-III.
list of objections for return of Instruments and Image based Cheque Clearing, as
detailed in Annexure D to Uniform Regulations and Rules for Bankers’ Clearing
House, has been placed as Annexure-IV of this document.
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 presentation through
SMS alert, email etc.
directed that no changes/corrections should be carried out on the cheques. For
any changes in the payee’s name, courtesy amount (amount in figures) or legal
amount (amount in words) etc. excepting change in the date for validation period,
fresh cheque forms should be used by customers. This will help bank to identify
and control fraudulent alterations. It is also applicable for the instruments
presented in clearing at CTS-2010 grid based clearing centres. Collecting Banks
have to ensure that such cheques are not accepted for presentation in CTS. It
is not applicable to cheques cleared under other clearing arrangements such as
MICR clearing, non-MICR clearing, over the counter collection (for cash
payment) or direct collection of cheques outside the Clearing House
of validity of cheque /draft /pay order/Banker’s cheque from 6 months to 3 months
/Return of cheques: Bank needs to mention the ‘Date of Return’ & sign/initial
the Cheque return Memo and the objection slip is to be signed/initialled giving
therein a definite and valid reason for refusing payment as prescribed in Rule
6 of the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH).
This will enable the holder of the instrument to have legal recourse against
the drawer of the cheque.
1.22 Collection of Third Party Cheques in
clearing: RBI has prohibited Banks from crediting
‘account payee’ cheques to the account of any person other than the payee named
therein. However, with a view to mitigate the difficulties faced by the members
of co-operative credit societies in collection of account payee cheques, RBI
permitted banks to collect for such societies account payee cheques drawn for
an amount not exceeding Rs.50,000/- on behalf of their constituents.
payment of compensation to the customers on account of delay in collection of
outstation cheques is to be paid to the customer without any request from him.
realization of service charges has been system enabled for automatic recovery
of service charges.