Banks will pay you for late local cheques

The Reserve Bank on Monday asked banks to compensate customers at the savings account rate of 4% for delay in clearance of local cheques. Banks are now required to clear local cheques in two working days.

The Reserve Bank on Monday asked banks to compensate customers at the savings account rate of 4% for delay in clearance of local cheques. Banks are now required to clear local cheques in two working days.

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"Banks are advised to reframe their cheque collection policies," said the RBI, advising banks to reframe their policies, specifying details regarding the timeline for clearance of local cheques and compensation for delay and display them on their websites.

Under the existing norms, the banks can provide facility of withdrawal of some amount against local cheques, subject to safeguards.