NEW DELHI: The RBI has decided to lower the service charge for outstation cheques up to Rs 5,000 but allowed banks to levy a higher fee for cheques above Rs 1 lakh. In a late evening notification on Wednesday, the regulator said the new charges would be applicable from April.
According to the revised schedule, in case of outstation cheques up to Rs 5,000, the service charge has been halved to Rs 25. For amounts between Rs 5,001 and Rs 10,000, the levy has been retained at Rs 50. For cheques between Rs 10,001 and Rs 1 lakh, the charge remains unchanged at Rs 100. The service charges have to include all charges such as those for postal, courier and handling, though service tax is outside the ambit. For cheques above Rs 1 lakh, banks would be free to levy any fee as part of RBI's move towards providing greater freedom.
At present, banks can charge up to Rs 150 per cheque. The same dispensation has been put in place in case of cheques covered under speed clearing. In case of local clearing, processing charges have been raised by 50 paise per cheque.
RBI said the measures are expected to hasten the migration of transactions to electronic mode. At the same time, it noted that the levies should be "reasonable and computed on a cost-plus-basis and not as an arbitrary percentage of the value of the instrument. The service charges-structure should not be open ended and should clearly specify the maximum charges that would be levied on customers including charges if any, payable to other banks.
Read more: RBI cuts fee on outstation cheques - The Times of India http://timesofindia.indiatimes.com/business/india-business/RBI-cuts-fee-on-outstation-cheques/articleshow/7322693.cms#ixzz1BYOwvhNO
According to the revised schedule, in case of outstation cheques up to Rs 5,000, the service charge has been halved to Rs 25. For amounts between Rs 5,001 and Rs 10,000, the levy has been retained at Rs 50. For cheques between Rs 10,001 and Rs 1 lakh, the charge remains unchanged at Rs 100. The service charges have to include all charges such as those for postal, courier and handling, though service tax is outside the ambit. For cheques above Rs 1 lakh, banks would be free to levy any fee as part of RBI's move towards providing greater freedom.
At present, banks can charge up to Rs 150 per cheque. The same dispensation has been put in place in case of cheques covered under speed clearing. In case of local clearing, processing charges have been raised by 50 paise per cheque.
RBI said the measures are expected to hasten the migration of transactions to electronic mode. At the same time, it noted that the levies should be "reasonable and computed on a cost-plus-basis and not as an arbitrary percentage of the value of the instrument. The service charges-structure should not be open ended and should clearly specify the maximum charges that would be levied on customers including charges if any, payable to other banks.
Read more: RBI cuts fee on outstation cheques - The Times of India http://timesofindia.indiatimes.com/business/india-business/RBI-cuts-fee-on-outstation-cheques/articleshow/7322693.cms#ixzz1BYOwvhNO
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