Banks will have to pay the compensation at savings bank interest rate in absence of a specified rate, for delayed clearance of local cheques, says RBI
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I was vigorously following up with RBI since then.
RBI has not issued this circular on it's own.
It may be noted that the banks reframed their Cheque Collection policies (CCP) after RBI in it’s Master Circular on Customer Service in banks No. RBI / 2009-10 / 57 DBOD.No.Leg. BC.9 /09.07.006/2009-10 dated July 1, 2009 advised banks to comply with the final order on 'timeframe for collection of outstation cheques' passed by the National Consumer Disputes Redressal Commission in case no. 82 of 2006. The decision came on 28th July 2008.
However till date none of the banks had provided for compensation for delay in local clearing cheques. They were denying the compensation on the spacious plea that RBI itself has not stipulated it.
RBI also did not notice it on it's own and did not do anything as mentioned above.
RBI, has since issued a circular yesterday directing banks to compensate customers for any delay in clearing local cheques. This would mean that banks will have to compensate customers monetarily if a cheque to be credited in an account on Monday, for instance, gets delayed till Wednesday.
RBI has said that in case, no rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate shall be paid for the corresponding period of delay.
I will be failing in my duty if I do not thank all the officials of RBI who handled this matter in a positive and constructive manner without any hostility and adversarial attitude and therefore I thank them profusely.
Thanks & With Warm Reagrds.
V.T.Gokhale
Parvati Nivas,
Savarkar Road,
Dombivli (East) 421 201
(M)9819287584
(R) 0251-2424845/2451288