Banks to Issue Multi-City Cheques: RBI

According to RBI’s (Reserve Bank of India) notification, all Core Banking Solutions (CBS) enabled banks are advised to issue ‘payable at par’ or ‘multi-city cheques’ to eligible customers. Since cheques (payable at par) are cleared as local cheques in clearing houses, banks should not levy any clearing charges to customers.

In a notification released earlier today, central bank asked all CBS enabled banks to comply with the directive, but these banks are issuing differently. While some banks are issuing multi-city cheques only to high net-worth customers, others are issuing these cheques as per the category of account.

The directive has been issued to improve customer services and speeding up fund transfer. It has also asked banks to remove ‘no-frills’ tag from savings accounts.