Guidelines for clearing of cheques where there is no formal clearing house

Extracts.. RBI/2011-12/559  DPSS.CO.CHD No./2073/03.02.01/2011-12 May 11, 2012
Guidelines for clearing of cheques where there is no formal clearing house
As you may be aware, it has been the endeavour of Reserve Bank of India to put in place clearing infrastructure at all places where there are five or more banks operating but do not have a clearing house with a relaxation to district headquarters where the presence of three banks is sufficient to establish a clearing house. Towards this endeavour, Regional offices of RBI continuously identify locations and banks for opening new clearing houses. As a result of such continuous efforts, there are 1200 clearing houses as on April 2012 across the country of which more than 200 clearing houses have been made operational during the last four years (2008-2012) alone.
2. However, there are still some locations/districts where a formal clearing house could not be opened due to the presence of less than three banks or bank branches not being within commutable distances or the volume of cheques being too low for a formal clearing house arrangement. In such locations, banks are following the practice of bilateral exchange/counter presentation of such instruments for debit to the customers’ account and thereafter settlement of funds among themselves through various means. There is hence no uniform practice in the matter.
3. It has therefore been decided to issue formal guidelines to be observed by banks at such places where there is no clearing house, as detailed in the annex I. Banks are advised to instruct their branches in such locations to adhere to the said guidelines for faster realisation of cheques and better customer service.
4. Please acknowledge receipt and confirm compliance. The first such monthly compliance report may be submitted on or before, October 12, 2012 in the format at annex II to our Regional Office under whose jurisdiction the bank branches are located.

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