RBI tightens ‘at par’ cheque norms for UCBs

...“It has been observed UCBs are utilising at par cheque facility extended by Scheduled Commercial Banks not only for their own use but also for their customers, including walk-in customers,” the central bank said in a notification. An “at par” cheque is payable at any branch of the issuing bank, without any excess charges to the bearer of the cheque. Co-operative banks have been advised to utilise these cheques for only specific purposes, such as for their own use, for account holders who are compliant under know-your customer (KYC) norms, and for walk-in customers against cash worth less than R50,000 per individual, RBI said in a notification.............

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