What changed
Earlier, banks issued these cheques selectively—some with value caps, others only to high-net-worth customers—and sometimes levied inter-sol charges. Now, RBI mandates universal issuance to all eligible customers, prohibits extra charges, and requires a board-approved risk management framework.
What it means for you
Banks must upgrade their cheque issuance processes to ensure all eligible customers receive CTS-2010 standard 'payable at par' cheques. This eliminates discriminatory practices and hidden fees, improving customer experience. However, banks need to implement robust risk categorization and board-approved policies to manage potential fraud or misuse.
What you must do
- Issue only CTS-2010 standard 'payable at par' or 'multi-city' cheques to all eligible customers.
- Develop and get board approval for a risk management policy based on account risk categorization.
- Ensure no extra charges (like inter-sol fees) are levied when these cheques are cleared at any CBS branch.
- Publish the updated board-approved policy on your bank's website and notify customers.
- Submit a copy of the policy to RBI as directed.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Customers eligible for cheque facilities
What are 'payable at par' or 'multi-city' cheques?
These are cheques that can be encashed or cleared at any CBS-enabled branch of the issuing bank, not just the base branch, making them effectively local cheques across the bank's network.
Can banks still charge extra for clearing these cheques at a different city?
No. RBI explicitly prohibits levying extra charges (like inter-sol fees) because these cheques are cleared as local cheques in clearing houses.
Do we need to issue these cheques to all customers immediately?
Yes, to all eligible customers who request them. Banks must also put in place a board-approved risk management policy based on account risk categorization.