{"id":167,"date":"2008-09-13T15:22:00","date_gmt":"2008-09-13T09:52:00","guid":{"rendered":""},"modified":"2009-06-06T11:59:15","modified_gmt":"2009-06-06T06:29:15","slug":"RBI-proposes-drastic-reduction-in-clearing-charges-for-outstation-cheques","status":"publish","type":"post","link":"http:\/\/www.raagvamdatt.com\/RBI-proposes-drastic-reduction-in-clearing-charges-for-outstation-cheques\/","title":{"rendered":"RBI proposes drastic reduction in clearing charges for outstation cheques"},"content":{"rendered":"<p>The Reserve Bank of India (RBI) has proposed to standardize the charges for clearing of outstation cheques, and make them much more affordable.<br \/>\n<!--more--><\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<table>\n<tr><!-- Row 1 --><\/p>\n<td>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-8580636079496870\";\n\/* 250_250_In_Article *\/\ngoogle_ad_slot = \"4765524919\";\ngoogle_ad_width = 250;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<\/td>\n<p><!-- Col 1 --><\/p>\n<td>\n<p><b>What is an Outstation Cheque?<\/b><\/p>\n<p>Although many banks now provide \u201cpayable at par\u201d cheques to their savings bank account (SBA) holders, many of us still have locally payable cheques.<\/p>\n<\/td>\n<p><!-- Col 2 --><br \/>\n  <\/tr>\n<\/table>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p>When such cheques are written for someone residing in another city, and are presented for clearing, they are treated as \u201coutstation cheques\u201d.<\/p>\n<p>Banks have been charging a special fee (or clearing charges) for clearing such outstation cheques. This fee varies from bank to bank, but is usually computed as a percentage of the cheque amount.<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-8580636079496870\";\n\/\/ArticleLinkList\ngoogle_ad_slot = \"0928256543\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/--><\/script><br \/>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p><b>The New Proposal by RBI<\/b><\/p>\n<p>Now, the Reserve Bank of India (RBI) has proposed to standardize these charges across banks, and make them more affordable.<\/p>\n<p>Here is the proposal:<\/p>\n<ul>\n<li>Outstation cheques up to Rs. 10,000: Rs. 25 per cheque<\/li>\n<li>Outstation cheques between Rs. 10,000 and Rs. 1 Lakh: Rs. 50 per cheque<\/li>\n<li>Outstation cheques above Rs. 1 Lakh: Rs. 100 per cheque<\/li>\n<\/ul>\n<p>These would be the only charges that banks would be allowed to collect from the customers \u2013 no additional charges (like courier charges) can be levied.<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-8580636079496870\";\n\/\/ArticleLinkList\ngoogle_ad_slot = \"0928256543\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/--><\/script><br \/>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p><b>What does it mean for you?<\/b><\/p>\n<p>As I mentioned earlier, the charges that banks currently levy are <b><i>far higher<\/i><\/b> than the proposed charges. Thus, everyone would benefit by these changes! All of us would save money on clearing of outstation cheques.<\/p>\n<p>But the savings would be significantly more for people writing more high-value cheques (Over Rs. 1 Lakh).<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p><b><i>Example<\/i><\/b><\/p>\n<p>The current average charge for clearing of outstation cheques is 0.4%.<\/p>\n<p>Thus, for a Rs. 2 Lakhs cheque, currently you would pay Rs. 800 as the clearing charge. Compare this to the proposed charge of Rs. 100 \u2013 a saving of Rs. 700 per cheque!<\/p>\n<p>And this saving would only increase as the cheque value increases!<\/p>\n<table width=\"100%\" border=\"0\" cellpadding=\"2\" cellspacing=\"2\" bgcolor=\"#ffffff\">\n<tr  >\n<td>\n<\/td>\n<td>\n<\/td>\n<\/tr>\n<\/table>\n<p>Other articles you might be interested in:<\/p>\n<ul>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article166.html\"><u>Definition of Residential Statuses: Resident, RNOR, NRI, PIO<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article165.html\"><u>An Introduction to Islamic or Shariah Compliant Banking<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article164.html\"><u>Early retirement \u2013 Why a fixed deposit (FD) is not a good choice<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article163.html\"><u>Permanent Account Number (PAN) for an NRI and a PIO<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article162.html\"><u>You are 30 \u2013 Think of 50: Impact of inflation on your budget<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article161.html\"><u>An Introduction to Reverse Mortgage<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article160.html\"><u>Home Loan \/ Mortgage Insurance \u2013 What to Buy, How to Buy<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article159.html\"><u>Change in interest rate: Impact on floating rate home loan, EMI and tenure<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article158.html\"><u>All you wanted to know about Senior Citizen Savings Scheme (SCSS)<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article157.html\"><u>When \u201cat-par\u201d is not so good: New Fund Offer (NFO) versus existing MF schemes<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article156.html\"><u>Not Cash, Not Travellers Cheques: Use Travel Card<\/u><\/a><\/li>\n<li><a href=\"http:\/\/raagvamdatt.com\/Article155.html\"><u>Once again, banks hike interest rates for deposits and lending (loans)<\/u><\/a><\/li>\n<\/ul>\n<p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) has proposed to standardize the charges for clearing of outstation cheques, and make them much more affordable.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/posts\/167"}],"collection":[{"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/comments?post=167"}],"version-history":[{"count":0,"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/posts\/167\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/media?parent=167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/categories?post=167"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.raagvamdatt.com\/wp-json\/wp\/v2\/tags?post=167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}