Cheque credit for 3rd party a/c eased for co-op credit society

Relaxing cheque credit norms to third party account, the Reserve Bank today said banks may clear cheques not exceeding Rs 50,000 towards the account of co-operative credit societies.
As per RBI norms, banks are prohibited from crediting account payee cheques to the account of any person other than the payee named therein.
"Banks may, however, consider collecting account payee cheques drawn for an amount not exceeding Rs 50,000 to the account of their customers who are co-operative credit societies," RBI said.
The above conditions will be applicable only if the payees of such cheques are the constituents of such co-operative credit societies, RBI added.

The norms have been relaxed in view of the difficulties faced by the members of co-operative credit societies in collection of account payee cheques.