Pay interest for delay in $-denominated cheques: RBI

Acknowledging customer complaints on delay in collection of dollar-denominated cheques, the Reserve Bank of India asked all urban co-operative banks to revamp their cheque collection system and pay interest in case of delay.

RBI further asked them to review their collection policies on a regular basis and explore using faster methods of realisation so as to save time. It also said the UCBs will have to pay interest on the amount of cheques from the date of sighting credit in their nostro account till the amount is credited in customers account, which will be paid at saving bank rate.