You no longer have to wait three working days for your bank to clear local cheques.
The Reserve Bank of India (RBI) has asked all banks to credit such cheques the day they are sent for clearing or the next day at the latest.
For outstation cheques drawn on branches in state capitals, the deadline is seven working days; the deadline is 10 working days for major cities and 14 working days for other locations.
“If there is any delay beyond this period, interest at the rate specified in the cheque collection policy shall be paid. If the rate is not specified, the applicable rate shall be the interest rate on fixed deposits for the corresponding maturity,” the RBI directive said.
The deadlines are based on guidelines issued by the National Consumer Disputes Redressal Commission after a complaint in 2006 against delays in cheque clearing.