RBI Revises Cheque Collection Charges from April 2011

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 33 kb ) Review of Service Charges for Cheque Collection – Local, Outstation and Speed Clearing RBI/2010-11/377 DPSS.CO.CHD.No. 1671 / 03.06.01 / 2010-11 January 19, 2011 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, Review of Service Charges for Cheque Collection – Local, Outstation and Speed Clearing 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. 2. 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. 3. 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. 4. 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 1,00,000 150 Above 1,00,000 Left to the banks to decide * No change. ^ All inclusive maximum amount chargeable by banks to the customers. (c) Service Charges for Cheque Collection under Speed Clearing (by Collecting Banks from customers) – Existing (Rs.) Revised (Rs.) Value Service charge from all customers Value Service charge from Savings a/c customers Up to and including 1,00,000 Nil Up to and including 1,00,000 Nil* Above 1,00,000 150 Above 1,00,000 Left to the banks to decide * No change. 5. Banks are free to fix charges for collection of instruments for credit to other types of accounts. 6. While fixing service charges not mandated herein, banks may note the following – (a) The service charge structure put in place by the bank should have the approval of the Board of Directors. (b) Charges fixed should be reasonable and computed on a cost-plus-basis and not as an arbitrary percentage of the value of the instrument. The service charges-structure should not be open ended and should clearly specify the maximum charges that would be levied on customers including charges if any, payable to other banks. (c) While sharing service charges, banks may be guided by the provisions of circular CIR / RB-I / CCP / 64 dated April 8, 2010 issued by the Indian Banks' Association. (d) Banks may note to ensure that collection charges fixed for instruments of any value is lower under Speed Clearing vis-a-vis Outstation Cheque Collection so as to encourage the use of Speed Clearing. (e) The service charges mandated / fixed by banks are inclusive of all charges (postal, courier, handling, etc.) other than service tax. 7. Banks shall use electronic modes like RTGS / NEFT to remit clearing proceeds to the collecting bank branch availing of Outstation Cheque Collection facility. 8. These directions are issued by the Reserve Bank of India in exercise of the powers conferred by Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Yours faithfully, (G Padmanabhan) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/377 · issued 19 Jan 2011. The plain-English explanation above is BankPulse’s own independent summary.

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