RBI: Local Cheques to be cleared in One day

Reserve Bank Of India has directed all Scheduled Commercial Indian banks to clear all local cheques in one day or at the most next day and all outstation cheques within 14 days.

For local cheques credit and debit shall be given on the same day or at the most the next day of their presentation in clearing. Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards.

Timeframe for collection of cheques drawn on state capitals / major cities / other locations to be 7/10/14 days respectively. If there is any delay in collection beyond this period, interest at the rate specified in the CCP of the bank, shall be paid. Full notification can be read from Reserve Bank Of India official website

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