We often see banks levy charges of cheque return whereas no fault of ours. The cheque may be return due to several other reasons other than insufficient funds, due date and mismatch of signature. In a recent notification Reserve Bank of India gives a important point stating that if there is no fault of the customer, bank can’t levy charges of cheque return. This is in order to ensure fair practices in banking services, the Reserve Bank has asked banks to levy cheque return charges only if the customers are at fault.
RBI advised the banks to adhere to the instructions with immediate effect and reframe their Cheque Collection Policies (CCPs) for better customer service and dissemination of information.
Banks are expected to indicate the timeline for realisation of local/outstation cheques in their CCPs and charges for cheque returns are expected to be levied in an upfront manner with due prior notice to the customers.
RBI issued a full note telling banks not to levy charges where customers are not at fault. Full note is as under.