Consumer court pulls up banks for delaying chequesSeptember 1st, 2008 - 8:24 pm ICT by IANS
New Delhi, Sep 1 (IANS) The National Consumer Disputes Redressal Commission (NCDRC) has asked three banks, including a state-owned one, to honour local cheques within 48 hours and outstation cheques within seven to 14 days.NCDRC president M.B. Shah, pulling up the State Bank of India, HSBC bank and the Standard Chartered Bank, said the banks will have to “credit local cheques to the consumer’s account the same day or at the most the next day and outstation cheques have to be encashed between seven and 14 days, depending upon the distance from the place where the cheque is issued”.
The commission was dealing with a case in which the complainants had stated that the delay in crediting the cheques was leading to “undue enrichment” of banks, which were earning millions by way of interest on the customers’ money for the delayed period.
Advocate Atul Nanda, one of the petitioners, had pointed out that banks often take more than three days to credit a cheque into a customer’s account, which is a violation of the guidelines laid down by Reserve Bank of India.
“If there is any delay in collection of the said (outstation) cheques beyond the period… interest at 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,” the commission said in its ruling on Aug 27.
The court directed the banks to comply with the order within two weeks and asked them to put up a notice written in bold letters at every branch informing consumers about the court’s ruling - on the collection period of cheques, including outstation ones, and the interest rates that will accrue in case it is delayed.
Shah also appreciated the complainant in bringing the case to the court. “We appreciate the hard work done by the complainants in drawing our attention to the problem and making the consumers aware of their rights.”
Disposing of the complaint, the commission asked the complainant and voluntary consumer organizations to approach it in future for appropriate relief in case the consumers act is not implemented properly.
The commission asked the banks to publish the guidelines drafted by the commission so that people are made aware of their rights.
- Court relief for British Airways - Jun 23, 2010
- Non-advocates can appear before consumer forums: Apex court - Aug 31, 2011
- Bank asked to pay Rs.50,000 for not returning dishonoured cheque - Jul 21, 2008
- Bank told to pay Rs.11 lakh for negligence - Mar 21, 2010
- Digi-pen gives old cheques new life - Feb 13, 2012
- CBI clerk, seven others sent to jail for fraud - Sep 06, 2012
- Apex court suggests fine in cheque bounce cases - Oct 15, 2011
- CBI allowed to quiz court clerk over fraud - Sep 05, 2012
- Bank can close account for want of PAN card details: Court - Jun 20, 2010
- 'No pre-payment charge on floating rate bank loans' - Sep 06, 2011
- Man jailed, fined Rs.3.5 lakh for dud cheque - Apr 03, 2011
- RBI frees savings interest rates - Oct 25, 2011
- Apex court suggests stiff penalty for dud cheques - May 04, 2010
- Bill to help banks recover dues to be introduced in winter session - Oct 13, 2011
- Man gets Rs.500,000 for courier firm's negligence - Jan 22, 2012