RBI EASES NORMS IN CHEQUE DISHONOUR CASES OF Rs. 1 CRORE AND ABOVE

BE/RBI/13/2016 –

Issuing a cheque book, leading to return of the instrument, due to insufficient balance is a criminal offence as per RBI guidelines.  The current guideline reads that banks are not allowed to issue fresh cheque books in the event of cheque dishonor valuing Rs 1 crore and above on four occasions during a financial year for want of sufficient funds.  Going ahead, in such cases, the banks are given freedom to consider closing of Current Accounts of such customers at its discretion.

Now, RBI has reviewed these instructions and leaves such issues at the respective banks’ discretion.  RBI on review of such cases has informed that Banks should put in place an appropriate policy approved by the board or its committee taking into consideration the need to prevent misuse of cheque drawing facility and avoid penalizing customers for unintended dishonor of cheques. 

Author: Admin Bankedge

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