MUMBAI: Taking a serious note of some rural regional banks issuing demand drafts or travellers cheques of Rs 50,000 and more against cash payments, the RBI on Tuesday asked all such lenders to refrain from the practice to ensure integrity of financial system. Regional rural banks (RRBs) can issue demand drafts, mail transfers, telegraphic transfers and travellers cheques for Rs 50,000 and above only by debit to the customer's account or against cheques or other instruments and not against cash payment. The Reserve Bank had issued a circular in this regard to RRBs in 1991. "In the current scenario where the integrity of the financial system in general and the banking channels in particular is of paramount importance, breach of these guidelines is a matter of serious regulatory concern in view of the wide ranging ramifications," RBI said. "Any violation of these instructions will be viewed seriously," the central bank said in a communication to RRBs after it was brought to its notice that some banks have recently violated the norms.
ET
No comments:
Post a Comment