RBI asks CBS enabled banks to issue only payable at par cheques

MUMBAI: All core banking solutions(CBS) enabled banks to issue just 'payable at par' or 'multi-city' cheques to their customers to bring efficiency in cheque clearing, said the Reserve Bank of India (RBI).

This decision was taken after considering the availability of processing infrastructure for clearing outstation cheques at all clearing locations across India and also improve the efficiency level of cheque clearance process.

The apex bank has directed banks to constitute an appropriate board approved risk management procedures.

Although, few banks have been issuing 'payable at par'/ 'multi- city' cheques with value cap, while other banks issue these cheques as per category of account (High Net-worth Customers).