Module: | Continuous Clearing (CCSR) & Penalties
Q27: The Reserve Bank of India mandates specific discipline protocols for "High Value" clearing. Which of the following statements accurately reflect these rules?
1. Banks must maintain special MIS reporting and monitoring for cheques of ₹1 crore and above.
2. In the event of repeated dishonour of such high-value cheques, the bank may take the administrative action of withdrawing the cheque facility from the customer.
2. In the event of repeated dishonour of such high-value cheques, the bank may take the administrative action of withdrawing the cheque facility from the customer.
✅ Correct Answer: C
To maintain financial discipline, the RBI mandates that cheques of ₹1 crore and above be monitored via special MIS (Statement 1). Frequent returns of such high-value instruments allow the bank to exercise its discretion to withdraw the cheque facility from the non-compliant customer (Statement 2).