CHEQUE PAYMENTS TO GET COSTLIER

Making payments through cheques will now be a costly affair, as Reserve Bank of India(RBI) has allowed banks to levy higher service charges for their clearing, especially of high-value and outstation cheques. As per Reserve Bank of India(RBI) circular coming into effect from April 1,
2011, banks would be free to fix service charges on speed clearing of cheques of value above Rs.1 lakh. At present, RBI does not allow banks to charge more than Rs.150 per cheque for speed clearing of cheques worth over Rs.1 lakh, while there are no charges for value up to Rs 1 lakh.