The Reserve Bank of India / Regional Director,
Central Office / Reserve
Bank of India
Mumbai
/ Rajaji Salai, Chennai 600 001
BANKS STILL ISSUING NON-CTS DEMAND DRAFTS
ABNORMAL DELAY IN ENCASHMENT OF DDs
CONSUMERS ARE FACING DIFFICULTIES
The public are facing lots of
difficulties because of some banks’ non adherence of instructions issued BY Reserve
Bank of India, in respect of CTS
instruments. Because of issuing non CTS
Demand Drafts by some of the Bank branches, the payees’ are unable to encash
the draft immediately and have to wait for 10 days of presentation to the
collecting banks, which requires RBI’s immediate intervention.
The
RBI had issued instructions in 2012
itself that all the banks
should issue only CTS-2010 compliant cheque books, demand drafts and pay
orders henceforth. The banks should not charge any of its savings bank account
customers when the CTS-2010 compliant cheque book is issued for the first time.
Discouraging non CTS instruments,
after two years, RBI restricted non-CTS instruments payment (clearing) as under:
From
1st Jan to 30th Apr,2014: Thrice a Week
Monday, Wednesday & Friday
From
1st May to 31st Oct, 2014:Twice a Week on Monday & Friday
From
1st Nov, 2014 onwards: Once a Week - Monday (before 11.00 am)
Hence
from 01/11/2014, if one presents a non-CTS demand draft on Monday, it could be
sent for payment / clearing only on next Monday and proceeds could be credited
to his account only on Tuesday or Wednesday.
Hence it takes about 10 days for encasing a Demand Draft – for no fault
of the customer (payee).
Unfortunately some of the banks are
even now issuing only NON CTS Demand Draft resulting abnormal delay in getting
it encashed by the payee. It seems
that these banks’ branches want to
exhaust all non CTS demand drafts, without bothering about customers’
interest. Non
CTS cheques are still in circulation and it may even due to customers not
availing these CTS Cheques from their Banks.
But how the Banks themselves could issue non CTS Demand Drafts / Pay
order even now, neither bothered about
RBI’s instruction nor the customers?
In this connection we wish
to point out that issuing of Non CTS Drafts and Pay Orders by the Banks, is a
“Deficieincy in Service”, since these are issued against the instructions of
RBI and hence Damages and Compensation could be claimed through Consumer court
from the Banks that issued Non-CTS Drafts / Pay order etc.
Quite a number of Banks’
branches are still in the habit of issuing Non CTS Drafts, which could be
easily verified through Non-CTS clearing data.
It should be viewed very seriously and RBI should take strong action
against such Banks, in the interest of the public.
For Coimbatore Consumer Cause
Secretary
