RBI advises RRBs not to dishonour cheques, drafts

Mumbai, Apr 11 (UNI) The Reserve Bank of India (RBI) has advised Regional Rural Banks (RRB) staffers not to dishonour the cheques and drafts, which are drawn in fractions of a rupee, a release stated.

Recently, in a case involving refusal by a bank to accept a draft drawn in fraction of a rupee lodged for collection to the credit of Government account came up before the Gujarat High Court, Ahmedabad.

The Gujarat High Court, taking a serious view of the matter, has directed the central bank to take appropriate steps in the matter in accordance with law, in the light of the extent instructions and, if required, issue fresh notifications notices to all the banks who have issued internal circulars not to receive such cheques.

Regional Rural Banks (RRBs) were also advised by RBI to review the practice being followed by them in this regard and take necessary steps including through issue of internal circulars to ensure that the concerned staff are well versed with these instructions so that the general public does not suffer, the release stated.

UNI