RRBs are prohibited from crediting 'account payee' cheque to the account of any person other than the payee named therein vide. RBI circular RPCD. CO.RF.BC. No. 78 / 07.38.03 / 2005‐06 dated April 27, 2006.
RBI reiterate that banks shall strictly adhere to the instructions and not collect account payee cheque for any person other than the payee constituent.
To mitigating the difficulties faced by the members of co‐operative credit societies in collection of account payee cheque, relaxation was extended vide RBI circular RPCD.CO.RRB.BC. No.25/03.05.33/2010‐11 dated October 19, 2010.
In terms of the above circular:
- RRBs may consider
- collecting account payee cheque
- drawn for an amount not exceeding Rs.50,000/‐
- to the account of their customers who are co‐operative credit societies,
- if the payees of such cheque are the constituents of such co‐operative credit societies.
Now RBI has issued RPCD.CO.RRB.BC. No. 30 /03.05.33/2011‐12 dated November 11, 2011 and stated that:
- the above relaxation will continue as hitherto,
- subject to the conditions outlined in the circular dated October 19, 2010 referred to above.
NOTE:
A) This is applicable to RRBs; and
B) the above prohibition and relaxation shall also extend to drafts, pay orders and bankers’ cheque.
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