Banks Must Pay for Delay in Clearing Outstation Cheques

Banks must pay for delay in clearing outstation cheques: Panel

NEW DELHI: The National Consumer Commission has ruled that the banks have to pay a compensation to consumers for delay in encashment of outstation cheques. It also directed banks to complete a transaction involving local cheque on the same day or at the most on the next day and specified two weeks' time-limit for outstation cheques."If there is any delay in collection of outstation cheques beyond the period of 14 days, interest at the fixed deposit rate, or at a specified rate as per the respective policy of the banks is to be paid to the payee of the cheques," said Justice M B Shah, Chairman of the National Consumer Disputes Redressal Commission (NCDRC). It directed the banks to display in bold letters the salient features of the policy with regard to the collection period of outstation cheques and interest due in case of a delay at every branch. "The salient features highlighting the rights of the consumers shall also be displayed on the notice board of each branch of the banks," Justice Shah said. The petitioner, advocate Atul Nanda, have contended that there is deficiency in service by various banks in giving credit to the consumer when the cheque is encashed. Delay in crediting the cheques to the customer's account by the banks led to gaining crores of rupees from interest, Nanda said.

Source:- Economic Times