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RBI Guidelines on Post-Dated Cheques

The Reserve Bank of India is instructing all scheduled commercial banks to stop accepting fresh post-dated cheques or EMI cheques where electronic funds transfer services are available. Banks are required to convert existing cheque payments to electronic funds transfers by obtaining new ECS debit mandates from customers. Banks are not permitted to take additional cheques from customers along with ECS mandates, as the Payment and Settlement Systems Act provides the same protections against non-payment. Only cheques complying with CTS-2010 standards should be accepted where electronic funds transfer services are unavailable.

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524 views2 pages

RBI Guidelines on Post-Dated Cheques

The Reserve Bank of India is instructing all scheduled commercial banks to stop accepting fresh post-dated cheques or EMI cheques where electronic funds transfer services are available. Banks are required to convert existing cheque payments to electronic funds transfers by obtaining new ECS debit mandates from customers. Banks are not permitted to take additional cheques from customers along with ECS mandates, as the Payment and Settlement Systems Act provides the same protections against non-payment. Only cheques complying with CTS-2010 standards should be accepted where electronic funds transfer services are unavailable.

Uploaded by

treddy249
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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भारतीय िरज़वर् बक

RESERVE BANK OF INDIA


[Link]

RBI/2013-14/158
[Link]. / 209 / 04.07.05 / 2013-14 July 24, 2013

The Chairman and Managing Director / Chief Executive Officer


All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks/Local Area Banks

Madam / Dear Sir

Migration of Post-dated cheques (PDC)/Equated Monthly Instalment (EMI)


Cheques to Electronic Clearing Service (Debit)

We invite a reference to our circular [Link].1622/04.07.05/2012-13


dated March 18, 2013 wherein all lending banks have been advised not to accept any
fresh Post Dated Cheques (PDC)/Equated Monthly Installment (EMI) cheques in
locations where the facility of ECS/RECS (Debit) is available and convert existing
cheques in such locations into ECS/RECS (Debit) by obtaining fresh mandates.

2. However, instances of banks obtaining fresh cheques (both CTS-2010 and non
CTS-2010 standard) in locations where the facility of ECS/RECS is available have
been brought to our notice, thus necessitating a reiteration of our earlier instructions
in this regard.

3. Accordingly, banks are advised to adhere to the following instructions with


immediate effect:

a. No fresh/additional Post Dated Cheques (PDC)/Equated Monthly Installment


(EMI) cheques (either in old format or new CTS-2010 format) shall be
accepted in locations where the facility of ECS/RECS (Debit) is available. The
existing PDCs/EMI cheques in such locations may be converted into
ECS/RECS (Debit) by obtaining fresh ECS (Debit) mandates.

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भुगतान और िनपटान णाली िवभाग, क ीय कायार्लय, 14व मंिजल, क ीय कायार्लय भवन, शहीद भगत िसह मागर्, फोटर्, मुम्बई - 400001
फोन Tel: (91-22) 22644995; फै क्स Fax: (91-22) 22659566 / 22691557 ई-मेल e-mail : cgmdpss@[Link]
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai - 400001
2

 
b. As indicated in our circular [Link].497/02.12.004/2011-12 dated
September 21, 2011, Section 25 of the Payment and Settlement Systems Act,
2007 accords the same rights and remedies to the payee (beneficiary) against
dishonor of electronic funds transfer instructions under insufficiency of funds
as are available under Section 138 of the Negotiable Instruments Act, 1881.
Considering the protection available, there is no need for banks to take
additional cheques, if any, from customers in addition to ECS (Debit)
mandates.

c. Cheques complying with CTS-2010 standard formats shall alone be obtained


in locations, where the facility of ECS/RECS is not available.

4. The above instructions are issued under section 18 of the Payment and Settlement
Systems Act 2007 (Act 51 of 2007).

5. Please acknowledge receipt.

Yours faithfully

(Vijay Chugh)
Chief General Manager

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