RBI seeks cap on outstation cheque charges

Reserve Bank proposed to put a ceiling on charges for collection of outstation cheques, ranging from Rs 25 to Rs 100 depending upon the value, a move that will benefit banking customers. Under the proposed scheme, a bank will not be allowed to charge more than Rs 25 for collection of outstation cheques up to Rs 10,000, the RBI said while inviting public comments by September 25 on its approach paper on rationalisation of service charges by banks. The charges for collection of cheques ranging in Rs 10,000 to Rs 1 lakh would not exceed Rs 50, while banks could impose a maximum of Rs 100 for cheques beyond Rs 1 lakh. According the RBI approach paper, which aims at bringing uniformity in service charges, banks will not be permitted to impose any other levy for collection of outstation cheques like courier fee, out of pocket expenses etc. The RBI study on service charges reveals that banks are collecting between Rs 12.36 and Rs 100 for clearing outstation cheques of smaller amounts. For higher amounts, certain banks charge even up to 0.6% of the cheque value. Reserve Bank also proposes to fix charges for electronic payments under various schemes like Real Time Gross Settlement system (RTGS), National Electronic Funds Transfer (NEFT) and Electronic Clearing Service (ECS). Under the RTGS, banks could levy up to Rs 50 per transaction, while in case of NEFT a maximum of Rs 25 can be charged for a transaction. In case of ECS, which is mostly used for paying dividend electronically, the RBI paper said that banks would not be allowed to levy more than what they charge for return of cheques.

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