cheque lost by bank

17
RIA1495/
2007-08 DBOD

"What is the period for encashment of outstation cheque and what is maximum period prescribed by the RBI guidelines? What are the rights of the customer in case the cheque is encashed beyond the prescribed date?"

Banks have been advised by us vide  our circular DBOD.No.Leg.BC.55/09.07.005/2004-05 dated November 1, 2004 (copy enclosed) that they may formulate a comprehensive and transparent Cheque Collection Policy taking into account their technological  capabilities , systems and processes adopted for clearing arrangements for collection through correspondents. We had issued further instructions to  the Indian Bank Association to issue suitable instructions to the banks to incorporate the following points in the cheque collection policy formulated by them:-

(i) In respect of cheques lost in transit or in the clearing process or at the paying bank's branch, banks should immediately bring the same to the notice of the account tholder so that the accountholder can inform the drawer to record stop payment and can also take care that other cheques issued by him are not dishonoured due to non-credit of the amount of lost cheques / instruments.

(ii) The onus of such loss lies with the collecting banker and  not with the account holder.

(iii) The banks should reimburse the account holder related expenses for obtaining duplicate instruments and also interest for reasonable delays occurred in obtaining the same.

(iv) If the cheque / instrument has been lost at the paying bank’s branch, the collecting banker should have a right to recover the amount reimbursed to the customer for the loss of the cheque / instrument from the paying banker.