May 11, 1993
All State and Central Co-operative Banks
Customer Service - Implementation of Recommendations of the Goiporia Committee
As you are aware a committee under the Chairmanship of Shri M. N. Goiporia was set up in September 1990 to make suitable recommendations for improvement in the customer service in banks. Based on the recommendations of the committee it has been decided that State Co-operative Banks/District Central Co-operative Banks (SCBs/CCBs) should implement the following recommendations:
(1) Immediate credit of outstation cheques upto Rs. 5,000/-
The facility of immediate credit against outstation cheques upto As. 2500/- tendered by individual account holders for collection has been in vogue since 1989 vide our Circular RPCD.No.RF.DIR.BC.65/D.1-88/89 dated 16 January 1989. In partial modification of these instructions, it has been decided that the ceiling for immediate credit may be enchanced to Rs. 5,000/- for out station cheques tendered by individual account holders subject to the recovery of usual collection charges and the bank is satisfied about the proper conduct of the account and the customer desires the facility. In the event of the cheque returned unpaid, the bank may recover normal rate of interest for the period it is out of funds. For this purpose, banks may consider introducing different pay-in slips superimposing a notice to the effect that in the event of dishonour of the cheque, customer will be subject to payment of normal rate of interest for the period till the bank was out of funds.
(2) Delay in collection of outstation cheques/instruments
As per the extant instructions, banks are required to pay interest at savings bank rate for delayed collection of outstation cheques/instruments drawn either on their own outstation branches or on outstation branches of other (drawee) banks and sent for collection, if the proceeds are not realised/credited to the customer's accounts or the unpaid instruments are not returned to the customers within a period of 14 days from the date of their lodgment (c.f. RPCD.No.RF.BC.91/D.1/89/90 dated 24 March 1990). We have been receiving complaints regarding undue delay in collection of outstation cheques/instruments despite various measures adopted for improvement in the service. With a view to creating greater awareness among banks to further improve the customer service, it has been decided that if the delay in collection of outstation cheques/instruments is beyond 10 days in the case of cheques lodged at and drawn on State Headquarters except the State Capitals of North Eastern Region and Sikkim and beyond 14 days in all other cases, banks should pay interest @ 2% p.a. over savings bank rate Interest payable should be paid/credited to all types of accounts of the customer without the customer having to claim it. Such interest may, however, be paid only when the amount is Rs. 5/- or more.
(Also Refer RPCD.No.BC.35/07.38.01/93-94 dt 10-09-93)
2. Please acknowledge receipt to our concerned Regional Office.
Deputy Chief Officer