January 22, 2014
The Chairmen / Chief Executives of
All Scheduled Commercial Banks (excluding RRBs)
Collection of Account Payee Cheques –
Prohibition on Crediting Proceeds to Third Party Account
Please refer to our circular DBOD.BP.BC.No.50/21.01.001/2011-12 dated November 4, 2011 advising banks that they are prohibited from crediting ‘account payee’ cheques to the account of any person other than the payee named therein. We reiterate these instructions and advise that banks should strictly collect ˜account payee™ cheques only for their payee constituents.
2. 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, if the payees of such cheques are the constituents of such co-operative credit societies, as advised in our above circular dated November 4, 2011.
Principal Chief General Manager