The National Consumer Disputes Redress Commission has directed 88 commercial banks, including foreign banks operating in India, to give credit the same day or at the most on the next day for local cheques deposited for clearance.

A Bench consisting of Chairman M.B. Shah and members Rajyalakshmi Rao and K.S. Gupta, was disposing of a complaint by Atul Nanda, a Supreme Court lawyer, who alleged that the banks were earning nearly Rs. 621 crore in interest every day due to delay in crediting cheques sent for clearance.

The Bench said: "On the basis of the various policies framed by the banks and the Reserve Bank of India's directions, it is directed that for local cheques credit and debit shall be given the same day or at the most on the next day; the maximum period for collection of outstation cheques shall be 7/10/14 days [depending on the place] and if there is any delay in collection of the cheques beyond this period, interest at the fixed deposit rate, or at a specified rate as per the respective policy of the banks, is to be paid to be payee."

The Bench asked the banks to publish on the noticeboard in each of their branches the salient features of the policy on collection period of outstation cheques and the interest payable in case of delay. A copy of the complete policy should be made available by the branch manager on demand. Consumers' rights should also be displayed on the noticeboard.