Friday 25 October 2013

‘At par’ cheques: Curbs on UCBs

The Reserve Bank of India has asked urban co-operative banks (UCBs) to utilise the ‘at par’ cheque facility only for limited purposes, including for their own use.

The restriction has been imposed in view of the systemic and supervisory concerns that emanate from UCBs utilising ‘at par’ cheque facility extended by scheduled commercial banks not only for their own use but also for their customers, including walk-in customers.

The central bank has asked UCBs to maintain records pertaining to issuance of ‘at par’ cheques covering, among others, applicant’s name and account number, beneficiary’s details and date of issuance of the ‘at par’ cheque.

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