Issue multi-city cheques, don’t levy charges: RBI to banks

“All CBS-enabled banks are hereby advised to issue only ‘payable at par’/‘multi-city’ CTS 2010 standard cheques to all eligible customers,” the RBI said in a notification

Mumbai: With a view to improving customer services and speeding up fund transfer, the Reserve Bank of India (RBI) on Friday asked all core banking solutions (CBS)-enabled banks to issue multi-city cheques to all eligible customers and refrain from levying clearing charges on them, reports PTI.
“All CBS-enabled banks are hereby advised to issue only ‘payable at par’/‘multi-city’ CTS 2010 standard cheques to all eligible customers,” RBI said in a notification.
A ‘payable at par’ or ‘multi-city’ cheque of a bank can be cleared by any branch of the same bank in the country. The process has significantly reduced the outstation cheque clearance time.
The notification has also directed the banks not to levy any charge for clearance of such multi-city cheques.
“Since such cheques (payable at par) are cleared as local cheques in clearing houses, customers should not be levied extra charges”, it added.
RBI has issued these directives in view of complaints that certain banks were issuing multi-city cheques with value cap or only to high net-worth customers.
“Instances of levying intersol charges when such cheques are cleared at other than the base branch city have also come to our notice,” it added.
The central bank in October 2007 had asked the CBS-enabled banks to make available the facility ‘payable at par’/‘multi-city’ cheques to all eligible and requesting customers.
There are about 35,000 CBS enabled branches.
The initiative was aimed at using the technology to speed up movement of funds throughout the country and also to improve customer services.
RBI has also asked the banks to put in place the appropriate board approved risk management procedures based on risk categorisation of accounts and post the updated policy in the regard on their websites.



MK Gupta

5 years ago

Even earlier also, RBI had issued the circular DPSS.CO.CHD.No./1112/04.07.05/2011-12 dated December 27, 2011, followed by the Circular No.RBI/2012-13/190DPSS.CO.CHD.No. 399/04.07.05/2012-13 dt. 3.9.2012 on Standardisation and Enhancement of Security Features in Cheque Forms-Migrating to CTS 2010 standards and, despite this, no PSU bank, including and especially the State Bank of India cared to follow these guidelines. In fact, SBI, in open disregard to and with utter contempt towards the Guidelines of the RBI continued (and still does continue) follow its own rules inter alia in respect of the so called “Home Account” and :”Non-Home A/c” transactions and levy prohibitive charges on the latter. As per the Circular dt. 27.12.2011 itself, all SB customers of all Banks including the SBI ought to have extended the facility of issuing Multi City charges and, by continuing to disregard the same, even in utter disregard for the Circular dt. 3.9.2012 in accordance with which the said facility was automatically available to all customers of SBI w.e.f. 1.10.2012, the bank has illegally and unethically collected from the hapless account holders huge charges which, in legal terms, constitute “UNJUST ENRICHMENT” and must be refunded to all concerned. The amount must be running into hundreds of crores, if judged by the separate huge ques outside all SBI branches (especially in the tiny Kalkaji branch of SBI in Delhi) of the labour class people from outside the NCT seeking to deposit or withraw into/from their “Non-Home” a/cs!

Will SBI refund the income illegally earned and unjustly enrich itself by ignoring with contempt the Guidelines of the central Bank of India?

I would request Moneylife to make a special study on this and with speciasl reference to the anti-people attitude of SBI for the public at large and its readers.

Market at a crucial juncture; bulls could be under severe threat

One should exit longs and those with a desire for high risks can create some short positions with an appropriate stop loss as the risk/reward ratio is now favouring a drop

S&P Nifty close: 5,320.40
Market Trend


Short Term: Sideways                       Medium Term: Down                        Long Term: Down     


As expected, the bulls fought back in style and the Nifty made a recent new high. The market opened with an upside gap on the first day of the week and since then has moved steadily higher, before easing off a bit at mid-week. The Nifty finally closed 105 points (+2.01%) in the green. The volumes were, however, marginally higher than last week implying that the bulls would feel slightly more confident of this rise.


The sectoral indices which outperformed were CNX Auto (+4.01%), CNX IT (+3.65%), CNX MNC (+3.27%) and CNX Metal (+3.04%) while the underperformers were CNX PSU Bank (-4.72%), CNX Infra (-0.68%) and CNX Realty (-0.37%). The histogram MACD has moved up in line with the rise in the Nifty and as long as it remains above the median level the bulls are in control.


Here are some key levels to watch out for this week

• As long as the S&P Nifty stays above 5,319 points (pivot) the bulls can breathe a bit easy though it is overbought in the short-term and is barely above this level now.

• Support levels in declines are pegged at 5,261 and 5,202 points.

• Resistance levels on the upside are pegged at 5,378 and 5,436 points.


Some Observations

  1. The Nifty recovered as expected and has made a recent new high and we anticipate that a reversal is likely from these levels.
  2. The ‘gap’ area between 5,246 and 5,260 has be defended by the bulls at all cost or else they would find the going tough.
  3. We saw the Nifty hit the resistance line (in black) from where it pulled back a wee bit.
  4. We are now heading into the 34th (Fibonacci number) week from the low of 4,531 points (23 Dec 2011) hence could be a significant top.


The Nifty did make a recent new high but did not correct as was expected during this week. It hit the trendline resistance (in black) from where it eased a tad. We are now into the 34th week from the low of 4,531 points (23 Dec 2011), hence we have been advocating exiting long positions into the rise last week. We came very close to hitting the 61.8% retracement (5,301 points) of the decline from 5,629-4,770 points. Looking at the above-mentioned factors we would reiterate exiting longs and those with a penchant for high risks can create some short positions with an appropriate stop loss as the risk/reward ratio is now favouring a drop. This is a contrarian view as there is bullishness all round, hence the possibility of a bear trap!!


(Vidur Pendharkar works as a consultant technical analyst & chief strategist at


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