Reserve Bank asks NBFCs to round off transaction values to nearest Rupee

RBI also asked NBFCs to ensure that they should not reject cheques / drafts issued by clients containing fractions of a rupee

The Reserve Bank of India )RBI) observed that some non-banking financial companies (NBFCs) are carrying out transactions, including payment of interest on deposits/ charging interest of advances etc., without rounding off to the nearest rupee.

In order to obviate unnecessary discomfort to the public and also to align with the prevalent practice as applicable to banks, NBFCs are advised that all transactions, including payment of interest on deposits/ charging of interest on advances, should be rounded off to the nearest rupee. Accordingly, the fractions of 50 paise and above shall be rounded off to the next higher rupee and fractions of less than 50 paise would be ignored.

Meanwhile, RBI also asked NBFCs to ensure that they should not reject cheques / drafts issued by clients containing fractions of a rupee.

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