Banks told to clear local cheques by next day

Banks told to clear local cheques by next day

Reserve Bank of India has some good news for Indian banking customers.

RBI has directed the banks to clear local cheques deposited with them on the same day or at worse the next day.

This decision was taken after receiving tons of complaints from customers related to delayed clearances by banks.

Banks in India were allowed to make their own time frames around four years ago. RBI had to reverse that decision to lessen the problems faced by consumers.

RBI had this to say on the announcement: “Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards.”