In view of technological progress registered by Banking Industry and enactment of the Payment and Settlement Systems Act 2007 as well setting up of (BC & SBI) Banking Codes and Standard Board of India and also in the light of NCDRC (National Consumers Dispute Redressal Commission) order in respect of delay in cheques clearing, the Reserve Bank of India vide its circular UBD (PCB) BPD No.34 / 09.39.000/2008-09 dated January 20,2009 have advised all UCBs to conform to time frame prescribed by the commission by embodying bank’s policy on collection of cheques.
All cheques and other Negotiable /quasi Negotiable instruments payable locally would be presented through Bankers - Clearing House, RBI, Ahmedabad. Cheques deposited at branch/es counters and in collection boxes within branch premises before the specified cut-off time (presently as under)
Week days Saturdays
Upto 4.30 P.M. 1.00 P.M. for branches commencing business at 9.00 A.M.
Upto 5.00 P.M. 1.30 P.M. for branches commencing business at 9.30 A.M.
and in collection boxes outside the branch/es premises including off-site ATMs will be presented in the next clearing cycle. Bank would give credit to customers a/cs. on the day clearing settlement takes place. Withdrawal of amount so credited would be permitted as per cheques return schedule of the URR - BCH - RBI - Ahmedabad. Wherever applicable, facility of High Value clearing (HVC) same day credit will be extended to customers provided minimum value of cheque is Rs.One lac and paying bank is participating in HVC.
Since, presently bank does not have outstation branches, the instruments would be directly sent for collection to the respective drawee bank or through correspondent banks or under MAS to GSC Bank. The Bank would also avail NCS offered by RBI at centres where such collection services exist.
Branches which are connected through a centralised processing arrangements and offering ABB services will provide same day Credit/Debit to it’s customers through CBS network.
The services of correspondent banks shall be utilized.
Satisfactorily conducted savings/current/cash credit a/cs. opened with KYC documents, duly introduced and older than 6 months at the discretion of branch Manager, considering payee and drawer of cheque an instant credit upto an aggregate of Rs.10,000/- may be allowed provided.
Immediately after receiving credit of proceeds by Nostro a/c. of correspondent bank, considering cooling period attributable to concerned country on the “best of efforts - basis
a) At saving bank rate for the period of delay beyond 7-10-14 days as the case may be occurred in collection of outstation cheques
b) Where the delay is beyond 14 days interest will be paid at the rate applicable to Term Deposit for the respective period.
c) In case of extra ordinary delay i.e. delay exceeding 90 days interest will be paid at the rate 2% above the corresponding Term Deposit rate
d) When the proceeds of cheque under collection was to be credited to an Overdraft / Cash Credit/Loan a/c. of the customer, interest will be paid at the rate applicable to respective a/c. In case of extra ordinary delay, interest will be paid at the rate 2% above the basic applicable rate being charged to borrower.
An instrument accepted for collection is lost in transit or in the clearing process or at the paying bank’s branch, the bank will immediately on receiving such information of loss or knowing the facts, bring the same to the notice of the a/c. holder so that he/she can inform the drawer to record stop payment and also take care that cheques, if any, issued by him / her are not dishonored due to non-credit of the amount of the lost instruments.
a) When intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated here above vide item C (a to d) for collection 7/10/14 days as the case may be, interest will be paid for the period exceeding the stipulated collection period at the rates specified here above.
b) In addition, bank will pay interest on cheque amount for a further period of 15 days at Savings Bank rate anticipating further delay in ostentation of duplicate cheque/instrument and collection thereof
c) In the event, the duplicate instrument is to be obtained from a bank/institution which charges fee for issuance, the bank would pay reasonable charges to the customer that he/she may incur on production of receipt
At the sole discretion of Banks higher management, within RBI directives from time to time and subject to banks - lending policy and ruling interest / exchange rates, bank may selectively allow such facility to its - customers only who are holding bank’s shares.
In the event of occurrence of some unforeseen circumstances (Force Majeure) including but not limited to civic commotion riots, mutiny, rebellion, sabotage, malicious terrorism, an act of foreign enemy hostilities, lock out, strike, Labour unrest / disturbances, accident, fire, earthquake, volcanic eruption and such natural disasters or other “Acts of God, war, damage to bank’s equipments, communication network, break down in computer system or its correspondent, RBI and absence of usual means of communication or all types of transportation etc. beyond control of the bank / correspondent / RBI, which prevents bank from performing its obligations within the specifically defined service delivery norms under this policy.