On April 8, 2025, the Reserve Bank of India (RBI) announced the withdrawal of 20 circulars related to cheque processing and customer service guidelines. This move follows a continued review under the recommendations of the Regulation Review Authority (RRA) 2.0, aimed at simplifying regulatory compliance and removing outdated instructions. The withdrawn circulars, dating from 1972 to 2002, covered various operational aspects such as temporary credit limits during suspended clearing, introduction of MICR technology, immediate credit for local and outstation cheques, payment of interest for delayed collections, and procedures for dishonoured cheques.
The decision affects all Scheduled Commercial Banks and Co-operative Banks, and the circulars listed in the annex are considered withdrawn with immediate effect. The RBI’s move is part of its broader initiative to streamline the regulatory framework, reduce redundancy, and improve operational efficiency in banking services. The withdrawn circulars primarily relate to practices that have since been updated or made redundant due to technological advancements and newer regulatory measures.
This step is expected to reduce compliance burdens on banks and help focus on current, relevant regulations. The list of withdrawn circulars includes instructions on customer service protocols for cheque collection, interest rates for delays, and measures to counter cheque-related fraud. The communication was issued under circular number RBI/2025-26/21 by the Department of Regulation.
Reserve Bank of India
India’s Central Bank
Review of Regulatory Guidelines – Withdrawal of Circulars
Notifications No. RBI/2025-26/21
DOR.CO.SOG(Leg) No.S248/09.08.024/2025-26 Dated: April 8, 2025
All Scheduled Commercial Banks
All Co-operative Banks
Madam / Dear Sir
Review of Regulatory Guidelines – Withdrawal of Circulars
As a sequel to the recommendations of Regulation Review Authority (RRA) 2.0, a further review has been undertaken on the existing regulatory guidelines on cheques. Accordingly, the circulars listed in ‘Annex’ are withdrawn with immediate effect.
Yours faithfully
(Sunil T S Nair)
Chief General Manager
Annex
List of Circulars withdrawn
| Sr.No. | Circular No. | Circular Date | Subject of the Circular |
| 1 | DBOD.No.CAS.1392/C.446-72 | August 19, 1972 | Temporary Credit Limits against Cheques Taken for Collection when Clearing is Suspended |
| 2 | DBOD.No.NCC.77/16.15.84/85 | July 31, 1984 | Introduction of MICR Technology for Cheque Processing |
| 3 | DBOD.No.Leg.BC-88/C.466(IV)-84 | August 22, 1984 | Customer Service – Payment of Interest at Savings Bank Rate for the Delay in Collection of Outstation Cheques (Recommendation No.78) |
| 4 | DBOD.No.BL.BC.81/BL.77-78 | January 11, 1988 | Immediate Credit of Outstation Cheques upto Rs. 2,500/- and Payment of Interest for Delayed Collection of Outstation Instruments – Extension of Facilities at Extension Counters |
| 5 | DBOD.No.Leg.BC.96/C.466(IV)-88 | February 17, 1988 | Immediate Credit of Outstation Cheques upto Rs. 2,500/- |
| 6 | DBOD.No.Leg.BC.112/C.233-89 | April 21, 1989 | Section 4 of Banking, Public Financial Institutions and Negotiable Instruments Laws(Amendment) Act, 1988 – Imposing Penalties in case of Dishonour of Cheque for Insufficiency of Funds in the Account |
| 7 | DBOD.No.GC.BC.84/C.408(A)-91 | February 19, 1991 | Frauds – Kite Flying of Cheques |
| 8 | DBOD.No.BC.82/09.07.007/93 | February 25, 1993 | Customer Service – Immediate Credit of Local Cheques |
| 9 | DBOD.No.BC.127/11.19.001/92-93 | June 9, 1993 | Clearing Differences |
| 10 | DBOD.No.BC.140/09.07.007/93 | July 12, 1993 | Delay in Crediting the Proceeds of Outstation Instruments – Rate of Interest |
| 11 | DBOD.No.BC.45/09.07.007/94 | April 16, 1994 | Customer Service – Immediate Credit of Outstation Local Cheques – Rate of Interest |
| 12 | DBOD.No.BC.93/11.19.001/93-94 | August 4, 1994 | Presentation of Cheques in the same day’s MICR Clearing |
| 13 | DBOD.BC.No.59/09.07.007/95 | May 17, 1995 | Customer Service – Collection of Outstation Cheques |
| 14 | DBOD.No.724/09.07.007/96 | June 22, 1996 | Customer Service – Collection of Outstation Cheques |
| 15 | DBOD.No.BC.48/09.07.007/97 | April 22, 1997 | Customer Service – Collection of Local Cheques |
| 16 | DBOD.No.248/09.07.007/97-98 | December 12, 1997 | Customer Service – Collection of Outstation Instruments |
| 17 | DBOD.No.BC.132/09.07.007/99-2000 | December 30, 1999 | Customer Service – Collection of Outstation Cheques |
| 18 | DBOD.No.BC.181/09.07.007/99-2000 | May 29, 2000 | Customer Service – Immediate Credit of Outstation and Local Cheques – Enhancement of Ceiling Cheques – Enhancement of Ceiling |
| 19 | DBOD.No.LEG.BC.131/09.07.007/2000-2001 | June 14, 2001 | Delay in Collection of Outstation Cheques |
| 20 | DBOD.No.Leg.BC.21/09.07.007/2002-03 | August 23, 2002 | Customer Service – Immediate Credit for Outstation and Local Cheques – Enhancement of Ceiling |
