Home › Circulars › RBI/2009-10/438

UCBs to Collect Foreign Currency Cheques Beyond USD

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2009-10/438 · issued 30 Apr 2010 · ~1 min read

Quick answerRBI extends customer-friendly collection of foreign currency cheques to all currencies, not just USD. Urban co-operative banks must now handle multi-currency cheque collections under the same streamlined process advised earlier for US dollar cheques.

What changed

Earlier, only US dollar-denominated cheques were covered under the customer-friendly collection arrangement. Now, the same facility is extended to cheques denominated in all other foreign currencies as well.

What it means for you

UCBs must now operationalize collection of foreign currency cheques in any denomination, not just USD. This expands service scope and may require updates to internal processes, tie-ups with correspondent banks, and staff training. Improved customer service is expected, but compliance burden increases.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Extend the existing USD cheque collection process to all foreign currency cheques.
Update internal circulars and customer-facing communications to reflect the multi-currency facility.
Train staff on handling non-USD foreign currency cheques, including exchange rate and clearing procedures.
Inform RBI Regional Office of actions taken as required by the circular.

Who it affects

All AD I and AD II urban co-operative banks (UCBs), Customers of UCBs who receive foreign currency cheques in currencies other than USD

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 06:32 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular apply to all UCBs or only those with AD status?

It applies to all AD I and AD II category UCBs, as addressed to their Chief Executive Officers.

What currencies are now covered under this collection facility?

All foreign currencies, not just US dollars. The earlier USD-only arrangement is extended mutatis mutandis to other foreign currencies.

Do we need to report action taken to RBI?

Yes, the circular requires acknowledging receipt and keeping the respective Regional Office informed of the action initiated.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #1711: UBD.BPD.(PCB).Cir.No.3/16.26.000/2009-10 — "Collection of Foreign Currency Denominated Cheques" dated April 30, 2010”

📜 Read the original circular — full text as issued by RBI

RBI/2009-10/438
 UBD. BPD. (PCB). Cir. No.3/16.26.000/2009-10
 April 30, 2010
 The Chief Executive Officers of
 All AD I and AD II UCBs
 Dear Sir
 Collection of foreign currency denominated cheques 
 Please refer to our circular UBD. (PCB). Cir. No. 33/16.26.00/2008-09 dated January 14, 2009 advising the steps to be taken for providing a customer friendly arrangement for collection of US Dollar denominated cheques.
 2. On a review of the action taken by banks, improvements in customer service have been observed. It has now been decided that the contents of the circular may be mutatis mutandis extended to include collection of cheques denominated in other foreign currencies as well.
 3. Kindly acknowledge receipt of this circular and keep our Regional Offices informed of the action initiated in this regard.
 Yours faithfully,
 (A. Udgata)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/438 · issued 30 Apr 2010. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 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=5640&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.