RBI suggests curbs on number of free cheque books issued to individuals

Reserve Bank of India (RBI) suggests curbs on number of free cheque books issued to individuals.

To encourage use of electronic payments and minimize use of cheques, an Reserve Bank of India (RBI) discussion paper has recommended that the number of free cheque books given per year to individuals may be kept to a minimum.

RBI-Reserve Bank of IndiaThe charges levied by banks beyond this minimum number may range from moderate to steep, depending upon the usage history of the customer.

A quick look at the charges being levied by banks shows that generally they provide 20–50 cheque leaves to savings bank customers for free, either on a quarterly or annual basis.

Few banks do not provide any free cheque books, while a few others provide free-of-cost cheques every quarter. Beyond this, the charges levied range from Rs 2 to 3 a cheque leaf.

In most banks, current account holding customers are not given any free cheques, though the charges are very nominal ranging between Rs 3 and 4 a leaf.

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