RBI asks banks to report reasons for check dishonor
By Ankit Sharma
Jul 26, 2011
Print    Email    RSS   

Banking and monetary regulator Reserve Bank of India has directed all banks that they should make a clear mention of the reasons when they dishonor or return an unpaid check.

"Certain instances of banks not signing the cheque return memos stating that the memos are computer generated and therefore no signature is necessary, have been brought to our notice," read a statement by RBI.

It said that these come under violation of instructions as referred in the Uniform Regulations and Rules for Bankers' Clearing Houses (URRBCH), issued under Payment and Settlement Systems Act 2007 read with Payment and Settlement Systems Regulations 2008.

RBI said that when banks return an unpaid check, it should also contain an objection slip duly signed containing the reason for the dishonor.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

All about Vintage/Classic car insurance in...
Increasing trend of prepaid cards in India
5 steps to avoid credit card debt and...
A general guide to Auto Insurance
Lost Your Credit Card? Here’s What You...

Good Morning, i forgot my FCMB Account Number and...
Radhey@09646870399 @Escoℛts In#Chandigarh...
Radhey@09646870399 @Escoℛt In#Chandigarh...

91st Founders day of the Karnataka Bank Feb 18, 2015
Banks on strike from 25th February Feb 16, 2015
SBT bank postponed the Open House meet Feb 13, 2015
Yes bank planning to line up for credit card portfolio Feb 12, 2015
Pocket banking – new app by ICICI bank Feb 11, 2015
News Archive