RBI/2010-11/190
DPSS.CO.CHD.No.485/03.06.01/2010-11

September 1, 2010

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks

Madam / Dear Sir,

Dishonour / Return of Cheques - Need to Mention the 'Date of Return'
in the Cheque Return Memo

As you are aware, the 'Cheque Return Memo' that should accompany a cheque dishonoured / returned for any reason is a critical document, more so in case recourse to legal action is necessitated. The procedure for handling dishonoured cheques including the return / dispatch thereof to the payee has been advised, vide, Reserve Bank circular DBOD.BC.Leg.No.113 / 09.12.001 /2002-03 dated June 26, 2003.

Rule 6 of the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH) also prescribes that instruments returned unpaid should have a signed / initialed objection slip on which a definite and valid reason for refusing payment must be stated. Format of the Return Memo (including the field for indicating the Date of Return) and the Model List of Objections is contained in Annexure D to the URRBCH.

Certain instances of banks not mentioning the date of return on the Cheque Return Memo have been brought to our notice.

Keeping in view the larger interests of customers and to ensure that uniform practices are adopted, banks are hereby advised to indicate the 'date of return' in the Cheque Return Memo without fail.

Yours faithfully,

(P.Vasudevan)
Deputy General Manager