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
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.