There are 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 the notice of RBI. Such practices are violation of instructions contained in Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH), which is issued under Payment and Settlement Systems Act 2007, read with Payment and Settlement Systems Regulations 2008. Banks are, therefore, advised to strictly adhere to the instructions and sign/initial the Cheque Return Memos as laid down in Rule 6 of URRBCH.
Dishonour / Return of Cheques – Need to Sign / Initial the Cheque Return Memo
RBI/2011-12/121
DPSS.CO.CHD.No. 120 / 03.06.01 / 2011-12
July 25, 2011
Madam / Dear Sir,
Dishonour / Return of Cheques – Need to Sign / Initial the Cheque Return Memo
Please refer to our circular DPSS. CO. CHD. No. 485 / 03.06.01 / 2010-11 dated September 1, 2010 on Dishonour / Return of Cheques – Need to Mention the ‘Date of Return’ in the Cheque Return Memo, wherein citing the criticality of the document in case of recourse to legal action, it has been indicated that instruments returned unpaid should have a signed / initialed objection slip on which a definite and valid reason for refusing payment must be stated, as prescribed in Rule 6 of the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH).
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. Such practices are violation of instructions contained in Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH) which is issued under Payment and Settlement Systems Act 2007 read with Payment and Settlement Systems Regulations 2008.
Banks are, therefore, advised to strictly adhere to the instructions and sign/initial the Cheque Return Memos as laid down in Rule 6 of URRBCH.
Yours faithfully,
(Pankaj Ekka)
Deputy General Manager
___________________________
Dishonour / Return of Cheques – Need to Mention the ‘Date of Return’ in the Cheque Return Memo
RBI/2010-11/190
DPSS.CO.CHD.No. 485 / 03.06.01 / 2010-11
September 1, 2010
The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
Madam / Dear Sir,
Dishonour / Return of Cheques – Need to Mention the ‘Date of Return’
in the Cheque Return Memo
As you are aware, the ‘Cheque Return Memo’ that should accompany a cheque dishonoured / returned for any reason is a critical document, more so in case recourse to legal action is necessitated. The procedure for handling dishonoured cheques including the return / dispatch thereof to the payee has been advised, vide, Reserve Bank circular DBOD.BC.Leg.No.113 / 09.12.001 /2002-03 dated June 26, 2003.
Rule 6 of the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH) also prescribes that instruments returned unpaid should have a signed / initialed objection slip on which a definite and valid reason for refusing payment must be stated. Format of the Return Memo (including the field for indicating the Date of Return) and the Model List of Objections is contained in Annexure D to the URRBCH.
Certain instances of banks not mentioning the date of return on the Cheque Return Memo have been brought to our notice.
Keeping in view the larger interests of customers and to ensure that uniform practices are adopted, banks are hereby advised to indicate the ‘date of return’ in the Cheque Return Memo without fail.
Yours faithfully,
(P.Vasudevan)
Deputy General Manager
