The Reserve Bank of India issued a notification withdrawing a set of regulatory circulars covering cheque-related operations, following a further review of existing cheque guidelines in line with recommendations of the Regulation Review Authority (RRA) 2.0. The withdrawal applies to all scheduled commercial banks and all co-operative banks and takes effect immediately. The annex lists 20 circulars issued between 1972 and 2002 covering areas such as temporary credit limits against cheques when clearing is suspended, the introduction of MICR technology for cheque processing, customer-service requirements on immediate credit for local and outstation cheques (including earlier ceilings such as INR 2,500) and interest payable for delays in collecting outstation instruments, controls relating to cheque frauds such as kite flying, and operational issues including clearing differences and same-day presentation in MICR clearing.
Reserve Bank of India 2025-04-08
Reserve Bank of India withdraws 20 cheque-related regulatory circulars with immediate effect
The Reserve Bank of India has withdrawn 20 regulatory circulars related to cheque operations, effective immediately, following a review by the Regulation Review Authority 2.0. This withdrawal affects all scheduled commercial and co-operative banks and covers areas such as temporary credit limits, MICR technology, customer service requirements, and controls on cheque fraud.