GST Course
CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Dishonour of cheques – Modification in procedure


 Notice Date : 04 August 2016

RBI/2016-17/33
DBR.No.Leg.BC.3/09.07.005/2016-17

August 04, 2016

All Scheduled Commercial Banks
(Including RRBs)

Dear Sir/ Madam,

Dishonour of cheques – Modification in procedure

Please refer to our circular DBOD.BC.Leg.No.113/09.12.001/2002-03 dated June 26, 2003 and paragraph 11.4 (i) of RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 dated May 12, 2014 wherein banks were advised to introduce a condition for operation of accounts with cheque facility that in the event of dishonour of a cheque valuing rupees one crore and above drawn on a particular account of the drawer on four occasions during the financial year for want of sufficient funds in the account, no fresh cheque book would be issued. Also, the bank may consider closing current account at its discretion.

2. The above instructions have been reviewed and it has been decided to leave it to the discretion of the banks to determine their response to dishonour of cheques of the account holders. Banks should put in place an appropriate policy approved by the Board or its Committee taking into consideration the need to prevent misuse of the cheque drawing facility and avoid penalising customers for unintended dishonour of cheques.

3. This policy should be transparent, made known to every customer upfront and implemented fairly.

Yours faithfully,

(Rajinder Kumar)
Chief General Manager

 

Guest
on 05 August 2016
Notification No : RBI/2016-17/33
Published in Others
Source : ,










Trending Tags