Check clearing halted in banks before Diwali, traders worried; CTI writes letter to PM

Check Clearing Halted In Banks:  The Reserve Bank implemented a new check clearing system on October 4th, promising same-day clearing. Instead, checks are taking 10 to 12 days to clear, causing significant inconvenience to both traders and the public. CTI has written a letter to Prime Minister Narendra Modi on this issue.

CTI has written to the Prime Minister complaining about technical glitches in banks and inadequate staff training.

RBI check clearing system halted

CTI Chairman Brijesh Goyal stated that the same-day cheque clearing facility is proving to be a burden on traders and the general public. Goyal explained that traders welcomed the RBI's announcement, but now the situation has completely reversed. Banks are responding with technical glitches and staff lacking proper training on the new system. On the eve of Diwali, the new cheque clearing system has severely disrupted operations, with merchant payments stuck, and the business sector is experiencing significant impact.

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Traders are unable to make timely payments to each other. Orders are being cancelled, and during a busy Diwali holiday, traders are having to make frequent trips to banks.

Checks are not being cleared even for 15 days.

According to CTI, it was initially believed that one-day check clearance would speed up operations, but since the announcement, the check clearance system in banks has collapsed. In some banks, checks deposited 15 days ago have not yet been cleared. Furthermore, many banks are refusing to accept checks altogether.

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Summary

Bank staff are telling customers not to deposit checks now. Apart from this, fights have started among traders at many places and people are saying that instead of cheque, you should make payment through RTGS or NEFT. People are not able to get money on the occasion of Diwali due to which Diwali shopping and payments are also getting affected.

In some banks, people making NEFT and UPI payments are also facing problems because the bank officials there say that the app of our online payment facility is being updated.