What changed
RBI withdrew 20 circulars related to cheques, effective immediately, following a review by the Regulation Review Authority (RRA) 2.0. The withdrawn circulars cover topics like MICR technology introduction, temporary credit limits during clearing suspension, immediate credit for outstation cheques up to Rs. 2,500, and customer service on cheque collection delays.
What it means for you
Banks no longer need to follow these specific historical instructions on cheque processing and customer service. This simplifies compliance by removing obsolete rules, but banks must ensure their current practices align with the latest regulatory framework. Lenders should review their cheque handling procedures to avoid relying on withdrawn guidelines.
What you must do
- Review the list of 20 withdrawn circulars and remove them from your internal compliance manuals.
- Update your cheque processing and customer service policies to reflect only current RBI directives.
- Train operations and compliance teams on the withdrawal to prevent inadvertent application of old rules.
- Monitor for any new RBI circulars that may replace the withdrawn guidelines.
Who it affects
All Scheduled Commercial Banks, All Co-operative Banks, Cheque processing and operations teams, Compliance and legal departments
Why did RBI withdraw these circulars?
As part of the Regulation Review Authority (RRA) 2.0 recommendations, RBI reviewed existing guidelines and deemed these 20 circulars obsolete or redundant, withdrawing them to streamline regulations.
Do I need to change my bank's cheque collection process immediately?
Yes, ensure your processes no longer rely on the withdrawn circulars. However, continue following any current RBI master directions or circulars on cheques and customer service.
What happens to customer service rules on outstation cheque collection?
The specific circulars on immediate credit limits and interest for delays are withdrawn. Banks should refer to the latest RBI guidelines on cheque collection and customer service for current requirements.