What changed
RBI formalized previously ad-hoc bilateral cheque exchange practices at locations with fewer than three banks, branches not within commutable distance, or low cheque volumes. Banks must now follow standardized guidelines for daily exchange, same-day return, and settlement, and submit monthly compliance reports.
What it means for you
Banks operating in remote or low-volume areas must implement uniform cheque clearing procedures, ensuring faster realization for customers. This reduces operational risk and improves customer service, but requires banks to coordinate with each other and report to RBI regional offices.
What you must do
- Establish daily bilateral cheque exchange at a mutually agreed place and time with other banks in non-clearing house locations.
- Ensure same-day fate confirmation and re-exchange of returned instruments.
- Set up settlement mechanisms (cash/transfer) for same-day fund realization.
- Provide shadow credit to presenting customers on settlement day per your Cheque Collection Policy.
- Submit monthly compliance reports to the respective RBI Regional Office, with the first report due on or before October 12, 2012.
Who it affects
Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Local Area Banks
What is the compliance reporting requirement?
Banks must submit a monthly statement (Annex II format) to the RBI Regional Office under whose jurisdiction their branches fall, with the first report due on or before October 12, 2012.