With a view to improving customer services and speeding up fund transfer,the Reserve Bank today asked all CBS (core banking solutions)-enabled banks to issue multi-city cheques to all eligible customers and refrain from levying clearing charges on them.
“… All CBS enabled banks are hereby advised to issue only ‘payable at par’/’multi-city’ CTS 2010 Standard cheques to all eligible customers,” RBI said in a notification.
A ‘payable at par’ or ‘multi-city’ cheque of a bank can be cleared by any branch of the same bank in the country. The process has significantly reduced the outstation cheque clearance time.
The notification has also directed the banks not to levy any charge for clearance of such multi-city cheques.
“Since such cheques (payable at par) are cleared as local cheques in clearing houses,customers should not be levied extra charges”,it added.
RBI has issued these directives in view of complaints that certain banks were issuing multi-city cheques with value cap or only to high net-worth customers.
“Instance of levying intersol charges when such cheques are cleared at other than the base branch city have also come to our notice,” it added.
The central bank in October,2007 had asked the CBS-enable banks to make available the facility ‘payable at par/multi-city’ cheques to all eligible and requesting customers.
There are about 35,000 CBS-enabled branches.
The initiative was aimed at using the technology to speed up movement of funds throughout the country and also to improve customer services.
RBI has also asked the banks to put in place the appropriate board approved risk management procedures based on risk categorisation of accounts and post the updated policy in the regard on their websites.