Delay in re-presentation of technical return cheques and levy of charges for such returns :
Delay in re-presentation of technical return cheques and levy of charges for such returns
1.As you’re aware, banks square measure expected to indicate the timeline for realization of local/outstation cheques in their Cheque assortment policy(CCP) associate degreed charges for cheque returns to be levied in an direct manner with due prior notice to the shoppers as enumerated in run batted in 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 severally.
2. However, recently, instances are brought to our notice where banks square measure (i) levying cheque come back charges even in cases where customers have not been at fault within the come back and (ii) delaying the re-presentation of the cheques that had been returned by the paying bank fragmentise technical reasons. each of these issues end in unacceptable customer service.
3. It is, therefore, desirable to streamline the procedure followed by all banks during this regard. accordingly, banks square measure suggested to stick to the following directions with immediate effect:
Cheque come back charges shall be levied only in cases where the customer is at fault and is responsible for such returns. The illustrative,but not thoroughgoing, list of returns, where the shoppers are not at fault square measure indicated within the annex.
Cheques that need to be re-presented without any recourse to the receiver, shall be made within the immediate next presentation clearing not later than 24 hours(excluding holidays) with due notification to the shoppers of such re-presentation through SMS alert, email etc.
4. Banks square measure accordingly suggested to reframe their CCPs to incorporate the procedures indicated in paragraph 3(i) and 3(ii) above, and should note to offer substance to their revised CCPs for better customer service and dissemination of knowledge.
5. The above directions square measure issued below Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Reason for Return
|Instrument mutilated; requires bank’s guarantee|
|Clearing House stamp / date required|
|Wrongly delivered / not drawn on us|
|Present in proper zone|
|Instrument contains extraneous matter|
|Image not clear; present again with paper|
|Present with document|
|Item listed twice|
|Paper not received|
|Crossed to two banks|
|Crossing stamp not cancelled|
|Clearing stamp not cancelled|
|Instrument specially crossed to another bank|
|Payee’s endorsement irregular / requires collecting bank’s confirmation|
|Endorsement by mark / thumb impression requires attestation by Magistrate with seal|
|Advice not received|
|Amount / Name differs on advice|
|Drawee bank’s fund with sponsor bank insufficient(applicable to sub-members)|
|Payee’s separate discharge to bank required|
|Not payable till 1stproximo|
|Pay order requires counter signature|
|Required information not legible / correct|
|Bank’s certificate ambiguous / incomplete / required|
|Draft lost by issuing office; confirmation required from issuing office|
|Bank / Branch blocked|
|Digital Certificate validation failure|
|Other reasons-connectivity failure|
|‘Payee’s a/c Credited’ – Stamp required|
Source : RBI