Encashing a cheque of $10 in Indian banks?

All govt banks may not have same policy. But banks charge a fixed processing fees irrespective of amount hence you need to do a cost-benefit analysis.

Hi,

Contact the regional office of your bank.. submit the complaint with them.

Thanks for the replies. I would contact a higher authority of the both the banks

Dear Harsha Vardhana R,

Referring to the information provided,

There is no such Minimum/Maximum capping of amount for any instrument to be accepted for clearing (Local/Outstation/International).

You can deposit it with any coomercial bank you have account with.

If not so, please raise a complaint to the concerned Nodal officer of the bank.

Thank you, Punit! Your clarification would help me in confidently pursuing my request. 

The learned expert above is factually wrong .Some banks can impose this limit depending on savings/current account type nothing wrong in it. Its a matter of their policy.Even rbi permits this. But provided it is informed/displayed. It will probably be on their website.

The decision by the bank in your case is really a pity.  The bank cannot refuse the acceptance especially if they charge processing fee. You may escalate the matter with the higher authority of the bank including a petition to the banking ombudsman for an unilateral decision by the bank manager.

Different banks adopt different procedures but no bank will refuse to accept the cheque for this reasons i.e., lower denomination. You may even contemplate to approach consumer forum for the bank's refusal to accept the deposit of cheque, ask the bank to give it in writing quoting their relevant rule in this regard. 

Thank you for giving a legal view. I would pursue the higher authorities of the bank. Also I can approach RBI authorities as that helped me in an earlier RTGS issue.