New Cheque Clearing System Faces Operational Challenges, Warns Bank Employee Union

The implementation of a new cheque clearing system in India is facing significant challenges, as reported by the Maharashtra State Bank Employees Federation. Software issues and inadequate staff training are leading to extended work hours and poor customer service. The union has requested intervention to streamline processes.

The recently introduced cheque clearing system has drawn criticism from a bank employee union, which claims that the system is causing major operational challenges. Implemented from October 4, the system aims to expedite cheque processing, but has confronted software glitches and inadequate staff training, as per a letter addressed to the Reserve Bank Governor by the Maharashtra State Bank Employees Federation.

The National Payments Corporation of India (NPCI), overseeing the system, admitted to experiencing 'teething issues'. While the new setup promises same-day cheque clearance, banks are encountering reconciliation problems, leading to longer working hours for employees and impacting customer service. Staff are dealing with account discrepancies that are causing customer dissatisfaction.

With the system implemented during the busy Diwali season, its challenges are exacerbating work pressure. The employee union has appealed to the RBI for aid in refining the system and deferring its full rollout until after the festive season. In response, NPCI stated that while issues persist, most have been resolved to stabilize the system.

(With inputs from agencies.)