Opinion - Letters to the Editor

Banking charges

Sir, — This has reference to N. Ramachandran's letter "Banking charges" (June 18). According to the instruction of the Indian Banks Association (IBA), currently in force, the collecting bank and the paying bank are required to share the collection charges on a 50:50 basis in respect of outstation collection of cheques (and other such instruments) involving two different banks.

However, both the collecting and the paying bankers should be members of the IBA. Neither of these banks is entitled to full collection charges. In case the paying banker has deducted the full charges, the collecting banker may credit the entire realisation proceeds (less pocket expenses such as postage, telephone/telegram charges, if any) to the customer to avoid difficulty to the customer and then recover 50 per cent of the charges from the paying banker.

The aggrieved customers could either ask to see the branch manager for redress of their grievances or write to the controllers of the branch.

Kishore A.
Visakhapatnam

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