The Hindu : National : Consumer panel directs banks to credit local cheques in 24 hours

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Consumer panel directs banks to credit local cheques in 24 hours

J. Venkatesan

Told to display policy on collection of outstation cheques and interest payable for delay

New Delhi: The National Consumer Disputes Redressal Commission has directed 88 commercial banks, including foreign banks operating in India, to give credit the same day or at the most on the next day for local cheques deposited for clearance.

Profitable

A Bench consisting of Chairman M.B. Shah and members Rajyalakshmi Rao and K.S. Gupta, was disposing of a complaint by Atul Nanda, a Supreme Court lawyer, who alleged that the banks were earning nearly Rs. 621 crore in interest every day due to delay in crediting cheques sent for clearance.

The Bench said: “On the basis of the various policies framed by the banks and the Reserve Bank of India’s directions, it is directed that for local cheques credit and debit shall be given the same day or at the most on the next day; the maximum period for collection of outstation cheques shall be 7/10/14 days [depending on the place] and if there is any delay in collection of the cheques beyond this period, interest at the fixed deposit rate, or at a specified rate as per the respective policy of the banks, is to be paid to be payee.”

The Bench asked the banks to publish on the notice board in each of their branches the salient features of the policy on collection period of outstation cheques and the interest payable in case of delay. A copy of the complete policy should be made available by the branch manager on demand. Consumers’ rights should also be displayed on the notice board.

The Bench noted that the RBI framed regulations on the basis of the Payment and Settlement Systems Act, 2007, which came into force with effect from August 12. The regulations also came into force the same day. “Considering the wide powers, which are given to the RBI under the Act, we hope that RBI would try to control the float, if any, arising due to delay in payment of the amount in case of outstation cheques. Needless to say that the RBI would monitor the directions given by it as well as by this Commission.”

Pat for complainant

The Commission, while appreciating the complainant’s efforts at drawing attention to various reports and making the consumers aware of their rights, held that it would be open to him or any other voluntary consumer organisation to approach the forum in future for appropriate relief if there was any deficiency in implementation of the Act and regulations.

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