a) banks should do away with stapling of any note packet and instead secure note packets with paper bands,

b) banks should sort notes into re-issuables and non-issuables, and issue only clean notes to public; and,

c) banks should forthwith stop writing of any kind on watermark window of bank notes.

With a view to facilitating DBT for the delivery of social welfare benefits by direct credit to the bank accounts of beneficiaries, banks are advised to:

• (a) open accounts for all eligible individuals in camp mode with the support of local government authorities,
• (b) seed the existing accounts or the new accounts opened with Aadhaar numbers and
• (c) put in place an effective mechanism to monitor and review the progress in the implementation of DBT.

Banks have been advised to adhere to the following instructions with immediate effect:

1. (a) Cheque return charges shall be levied only in cases where the customer is at fault and is responsible for such returns.
2. (b) Cheques that need to be re-presented without any recourse to the payee, shall be made in the immediate next presentation clearing not later than 24 hours (excluding holidays) with due notification to the customers of such re-presentation through SMS alert, email etc.

A list of technical reasons is given by RBI in its circular which can be seen by clicking on the link given in next column

Reserve Bank of India / Banking Ombudsmen have been receiving complaints that many bank branches are not accepting cheques at the counters and are compelling the customers to drop the cheques in the Cheque Drop Box.

It is, therefore, advised that customers should not be compelled to drop the cheques in the drop box and while the cheque drop box facility may be made available to the customers, the facility for acknowledgement of the cheques at the regular collection counters should also be available to the customers. No branch should refuse to give an acknowledgement if the customer tenders the cheque at the counters.

Wherever the cheque drop box facility has been introduced, it is necessary that customer is made aware of both the options available to him, i.e. dropping cheques in the drop box or tendering them at the counters so that he can take an informed decision in this regard. 

Banks are, therefore, advised to invariably display on the Cheque Drop-Box itself that   'Customers can also tender the cheques at the counter and obtain acknowledgement on the pay-in-slips'

1. Witness in nomination forms

As you are aware, the Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. The nomination forms (DA1, DA2 and DA3) have also been prescribed in the Nomination Rules. These forms, inter alia, prescribe that the thumb impression of the accountholder is required to be attested by two witnesses. It has come to our notice that some banks also insist on attestation of signature by witnesses.

We have examined the issue in consultation with Indian Banks' Association and clarify that signatures of the accountholders in forms DA1, DA2 and DA3 need not be attested by witnesses.

2. Nomination in case of joint Deposit Accounts

It is understood that sometimes the customers opening joint accounts with or without "Either or Survivor " mandate, are dissuaded from exercising the nomination facility.

It is clarified that nomination facility is available for joint deposit accounts also. Banks are, therefore, advised to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers.

The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II (Pt.) dated March 25, 2013, advised the rate of interest on various small savings schemes for the financial year 2013-14. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2013-14, effective from April 01, 2013, on the basis of the interest compounding/payment built-in in the schemes, will be as under: