RBI asks banks to collect EMIs through ECS

RBI has asked banks not to accept fresh or additional post-dated cheques or EMI cheques at places where ECS facility is available

Reserve Bank of India (RBI) has asked banks not to collect any post-dated cheques for loan repayment as equated monthly instalment (EMI) at places where electronic clearance service (ECS) is available.

 

In a notification, the central bank said, banks should not accept fresh or additional post-dated cheques (PDC) or EMI cheques at locations where ECS facility is available.

 

The move is aimed at cutting usage of cheques and promoting electronic transfer. It will also save borrowers the efforts of going to branch for collection of chequebooks.

 

“The existing cheques in such locations may be converted into ECS by obtaining fresh ECS (Debit) mandates,” it said.

 

The notification also said that ECS also accords the same rights and remedies to the payee against dishonour of electronic funds transfer instructions under insufficiency of funds that are available under Section 138 of the Negotiable Instruments Act, 1881.

 

“Considering the protection available, there is no need for banks to take additional cheques, if any, from customers in addition to ECS (Debit) mandates,” it said.

 

Cheques complying with CTS—2010 standard formats shall alone be obtained in locations, where the facility of ECS is not available, it added.

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Charu Deshpande suicide: Mumbai police interrogate Tata Steel officials

The investigating team from Mumbai is questioning several officials, including some in the vice-president rank, in connection with the alleged suicide of Charu Deshpande

A six-member team of Mumbai police has interrogated five officials of Tata Steel in connection with the alleged suicide of Charudutta (Charu) Deshpande, the steelmaker's former chief of corporate communication.

 

Deputy Superintendent of police Deepak Devraj has said that the team grilled five officials and verified some documents related with the case. He said, “We are trying to match the recorded statements of the officials and employees. Interrogation is on”.

 

The interrogation began on Monday and the investigating team questioned several officials of corporate communication department from Jamshedpur, Odisha and Kolkata.

 

They had even questioned officials in the rank of vice-president for hours on Tuesday.

 

57-year-old Deshpande, was found hanging at his Vasai home on 28th June. No suicide note was found. His friends and former colleagues alleged that he had been harassed.

 

There were allegations that Deshpande killed himself following harassment by the employees of Tata Steel, where he had worked.

 

A departmental inquiry has been ordered by Tata Group chairman Cyrus Mistry into the circumstances leading to Deshpande’s death.

 

Earlier, Maharashtra Home Minister RR Patil had ordered Mumbai Crime Branch chief Himanshu Roy to probe the alleged suicide of Deshpande following which the team has begun a parallel investigation into the case.

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