Delay in re-presentation of technical return cheques and levy of charges

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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).
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
Source : RBI
 
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