Mumbai, Jan 23 (KNN) Keeping in view the difficulties faced by the members of co-operative credit societies in collection of account payee cheques, the Reserve Bank of India (RBI) has said that the banks may clear cheques not exceeding Rs 50,000 towards the account of the co-operative credit societies.
 
As per the RBI norms, “…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,” the apex bank said in its letter to all banks.
 
"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," RBI added. 

The above conditions will be applicable only if the payees of such cheques are the constituents of such co-operative credit societies, RBI said. (KNN/SD)