What changed
RBI revised service charges for local clearing and outstation cheque collection effective April 1, 2011. For outstation cheques, mandatory charges for savings account customers are capped at ₹25 for up to ₹5,000, ₹50 for ₹5,001–₹10,000, and ₹100 for ₹10,001–₹1,00,000; above ₹1,00,000, banks can decide charges. For speed clearing, charges for savings account customers remain nil up to ₹1,00,000, and above that banks have freedom. Drawee bank charges for MICR-CPC clearing increased to ₹1.50 and for cheque truncation to ₹1.00.
What it means for you
Banks gain pricing flexibility for outstation cheque collections above ₹1,00,000 and speed clearing above ₹1,00,000 for savings account customers, but must ensure charges are reasonable, cost-plus-based, board-approved, and not open-ended. The revised structure aims to push large-value transactions toward electronic modes while protecting small savers. Banks need to recalibrate their fee schedules and ensure speed clearing charges remain lower than outstation charges to incentivize its use.
What you must do
- Update your bank's service charge schedule for outstation cheque collection and speed clearing to comply with the new value bands and caps for savings account customers by April 1, 2011.
- Ensure board approval for any non-mandated charges and that they are computed on a cost-plus basis with clear maximum limits.
- Verify that speed clearing charges are set lower than outstation collection charges for all instrument values.
- Communicate the revised charges to all branches and customer-facing staff, and update relevant system parameters.
Who it affects
All scheduled commercial banks including RRBs, UCBs, state co-operative banks, and district central co-operative banks, Savings account customers using cheque collection services, Bank operations teams handling clearing and collection processes
What are the new maximum charges for outstation cheque collection for savings account customers?
For cheques up to ₹5,000, maximum charge is ₹25; for ₹5,001–₹10,000, it is ₹50; for ₹10,001–₹1,00,000, it is ₹100. For amounts above ₹1,00,000, banks can set their own charges.
Are banks free to charge any amount for outstation cheques above ₹1,00,000?
Yes, but charges must be reasonable, cost-plus-based, board-approved, and transparent. They cannot be an arbitrary percentage of the instrument value.
What is the change in drawee bank charges for local clearing?
For MICR-CPC clearing, drawee bank charge increases from ₹1.00 to ₹1.50 per instrument. For cheque truncation, it increases from ₹0.50 to ₹1.00 per instrument.