The Reserve Bank of India on Tuesday asked banks to compensate customers for delay in clearance of local cheques.
"Instances of delayed credit to customers' accounts without any compensation for the delayed period beyond the time line indicated in the CCPs, in respect of local cheques, have been brought to our notice", the RBI said.
RBI also said that banks are advised to re-frame their Cheque Collection Policies (CCPs) to include compensation payable for the delayed period in the case of collection of local cheques as well.
In case, no rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate shall be paid for the corresponding period of delay, RBI said in the circular.
However, there would not be any change in the guidelines regarding realisation and compensation for delay in clearance of outstation cheques.
The central bank has asked banks to publish the compensation policy on their branch display boards and on their websites.