UCBs: Service Charges for Electronic Payments & Cheque Collection
Current · Source: Reserve Bank of India · RBI/2008-09/369 · issued 02 Feb 2009 · ~2 min read
Quick answerRBI directs all Primary Urban Co-operative Banks to implement a standardised framework for service charges on electronic payment products, outstation cheque collection, and transfer of surplus clearing funds, effective immediately.
The rule, in the simplest words
All Primary Urban Co‑operative Banks must use the RBI‑prescribed fee schedule for electronic payment products, outstation cheque collection, and surplus clearing fund transfers.
The fee schedule comes from two DPSS circulars dated Oct 8 2008 and Nov 20 2008 and must be applied right away.
Banks need to update their fee lists, get any required board sign‑off, and tell every branch about the new charges.
The goal is to make charges clear and the same everywhere, so customers have fewer disputes.
How it plays out — a real example
Rohit, a payments officer at a Mumbai urban co‑operative bank, opens the Oct 8 2008 and Nov 20 2008 DPSS circulars, changes the NEFT and outstation cheque‑collection fees to match the RBI table, gets his manager’s approval, and then sends a friendly note to all branch managers explaining the new, uniform charges.
What changed
RBI issued this circular to UCBs, enclosing two DPSS circulars from October and November 2008 that prescribe a charge framework for electronic products, outstation cheque collection, and surplus clearing fund transfers. The directions are issued under the Payment and Settlement Systems Act, 2007, and must be implemented with immediate effect.
What it means for you
UCBs must now align their fee structures for electronic payment products, outstation cheque collection, and clearing fund transfers with the RBI-prescribed framework. This standardisation aims to ensure transparency and uniformity in charges across banks, reducing customer disputes. Banks need to review and update their existing fee schedules and systems to comply without delay.
What you must do
Obtain and review the enclosed DPSS circulars (dated Oct 8, 2008 and Nov 20, 2008) for detailed charge frameworks.
Align your bank's service charges for electronic products, outstation cheque collection, and surplus clearing fund transfers with the prescribed framework.
Implement the changes with immediate effect if not already done, and ensure board-level approval if required.
Communicate the revised charges to all relevant branches and departments for uniform application.
Who it affects
All Primary (Urban) Co-operative Banks, Customers using electronic payment products or outstation cheque collection services, Clearing operations teams handling surplus fund transfers
❓ Common questions
What is the legal basis for these directions?
The directions are issued under Section 18 of the Payment and Settlement Systems Act, 2007, without prejudice to any other permissions or approvals required under other laws.
Do we need to seek any additional approvals before implementing these charges?
The circular states these directions are without prejudice to permissions/approvals required under any other law, so you must ensure compliance with all applicable regulations, but the charge framework itself is to be implemented immediately.
What should we do if we have already implemented similar charges?
If already implemented, no further action is needed. Otherwise, implement the prescribed framework with immediate effect.
📜 Read the original circular — full text as issued by RBI
We enclose copies of the circulars issued by Department of Payment and Settlement Systems, Reserve Bank of India, DPSS. CO. No. 611 / 03.01.03 (P) / 2008-09 dated October 8, 2008 and DPSS. CO. No. (CHD) 850 / 03.01.02 (P) / 2008-09 dated November 20, 2008 advising the framework of charges to be levied by banks for offering various electronic products, for outstation cheque collection services and transfer of surplus clearing funds for your information and necessary action. These directions have been issued under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) without prejudice to permissions / approvals, if any, required under any other law.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/369 · issued 02 Feb 2009. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the revised charges to all relevant branches and departments for uniform application.
⚙️ Operations
Align your bank's service charges for electronic products, outstation cheque collection, and surplus clearing fund transfers with the prescribed framework.
📜 Compliance
Obtain and review the enclosed DPSS circulars (dated Oct 8, 2008 and Nov 20, 2008) for detailed charge frameworks.
Implement the changes with immediate effect if not already done, and ensure board-level approval if required.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All Primary (Urban) Co-operative Banks, Customers using electronic payment products or outstation cheque collection services, Clearing operations teams handling surplus fund transfers), your first concrete step on “UCBs: Service Charges for Electronic Payments & Cheque Collection” is: “Obtain and review the enclosed DPSS circulars (dated Oct 8, 2008 and Nov 20, 2008) for detailed charge frameworks.” (RBI issued this 02 Feb 2009).
Circular: RBI/2008-09/369 -- UCBs: Service Charges for Electronic Payments & Cheque Collection
Issued: 02 Feb 2009
Action required: Obtain and review the enclosed DPSS circulars (dated Oct 8, 2008 and Nov 20, 2008) for detailed charge frameworks.
Action required: Align your bank's service charges for electronic products, outstation cheque collection, and surplus clearing fund transfers with the prescribed framework.
Action required: Implement the changes with immediate effect if not already done, and ensure board-level approval if required.
Action required: Communicate the revised charges to all relevant branches and departments for uniform application.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4828&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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