RBI Circular No: RBI/2010-11/377 (19-Jan-11) Review of Service Charges for Cheque Collection – Local, Outstation and Speed Clearing

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks includin RRBs / UCBs /
State Co-operative Banks / District Central Co-operative Banks

Madam / Dear Sir,

Given the advantages of using electronic modes for initiating payments, especially for large value transactions, Reserve Bank of India has been taking concerted steps towards increasing the acceptability, reach and efficiency of electronic transactions. Paper-based instruments, however, continue to account for a significant volume of payments in the country. Reserve Bank has therefore been encouraging the use of technology and the core-banking infrastructure of the banking system for reducing the clearing cycle and movement of cheques, both local and outstation.

  1. In this regard, attention of banks is invited to our circulars DPSS.CO.No.611 / 03.01.03(P) / 2008-09 dated October 8, 2008 and DPSS.CO.No.829 / 03.01.03(SC) / 2008-09 dated November 17, 2008 in terms of which, charges for Outstation Cheque Collection as also cheques collected under the Speed Clearing arrangement were mandated by the Reserve Bank for different value bands.

  2. On a review of the developments in this regard, it has been decided to revise the charges structure. While Reserve Bank would continue to mandate charges for smaller value transactions relating to savings account customers, greater freedom is being accorded to banks to determine charges for larger value transactions, subject to such charges being levied by the banks in a fair and transparent manner. These measures are expected to hasten the migration of transactions to electronic mode.

  3. Accordingly, the following service charge structure will come into effect from April 1, 2011.

    (a) Service (Processing) Charges for Local Clearing (by Clearing Houses from Member Banks) --

    System Existing (Rs.) Revised (Rs.)
    Presenting Bank Drawee Bank Presenting Bank Drawee Bank
    Clearing at MICR-CPCs 1.00 1.00 1.00 1.50
    Cheque Truncation 0.50 0.50 0.50 1.00

    (b) Service Charges for Outstation Cheque Collection --

    Existing (Rs.) Revised (Rs.)
    Value Service charge from all customers Value Service charge from Savings a/c customers
    Up to and including 10,000 50 Up to and including 5,000 25^
    Above 5,000 and up to and including 10,000 50*^
    Above 10,000 and up to and including 1,00,000 100 Above 10,000 and up to and including 1,00,000 100*^
    Above 1,00,000 15
    ...

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