Financial Daily from THE HINDU group of publications
Tuesday, Nov 02, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Money & Banking - RBI & Other Central Banks


RBI asks banks to ensure prompt credit of cheques

Our Bureau

Mumbai , Nov. 1

THE Reserve Bank of India has asked banks to formulate comprehensive and transparent policies, for the immediate credit of outstation cheques.

In a circular to commercial banks, the apex bank has also asked them to set a time frame for the collection of local and outstation financial instruments and interest payment for delayed collection.

The central bank has said, that while it has been issuing instructions, in these areas, on a comprehensive review of the technological progress in payment and settlement systems , it has observed that prescription of a single set of rules may not be appropriate. Therefore, banks have been encouraged to formulate their own policies, taking adequate care to ensure that the interests of the small depositors are fully protected.

The policy framed in this regard should be integrated with the deposit policy formulated by the bank in line with the Indian Banks Association's model deposit policy.

The policy should clearly lay down the liability of the banks by way of interest payments due to delays for non-compliance with the standards set . Compensation by way of interest payment, where necessary, should be made without any claim from the customer

More Stories on : RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
CentrumDirect opens Bangalore office


Mid-Term Review of Credit Policy — Targeting inflation without hurting growth
Rupee sheds gains; bond prices fall
Mango Securities(Hyd) registration cancelled
RBI asks banks to ensure prompt credit of cheques
Centurion Bank to focus on wealth management
IBA favours corporatisation of PSBs
91-day bill auction on November 3
SBT revises FCNR rates
BoI to accept 7-14 day deposits
V.P. Shetty takes charge as Canara Bank CMD
United Bank CMD resumes work



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line