RBI releaxes Chequebook norms for Banks, leaving it upto bank what should be done in case of cheque dishonour amounting Rs 1 crore and above : Giving relaxation in Chequebook norms, Reserve Bank of India (RBI) left it to the lender’s volition on what should be done in case of cheque dishonour of Rs 1 crore and above. Now banks may decide their own whether to issue fresh chequebooks or not in case of dishonor of cheque amounting of Rs 1 crore and above.
What are the existing norms in cheque dishonour :
As per existing norms, banks are not allowed to issue fresh chequebooks in case of cheque dishonour amounting Rs. 1 crore and above on four occasions during a financial year for want of sufficient funds.
Banks may consider the closing the account at its volition in such cases.
What are modified chequebook norms in Cheque dishonour cases :
After review of these norms ,now RBI has left it on banks how to responds in such cases or events.
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 penalising customers for unintended dishonour of cheques.
The Central Bank (RBI) has also asked the banks to make this policy transparent and bring it to the knowledge of customers.