Saturday, February 28, 2009

What is a Multi City Cheque

"Multi City Cheque" or MCC is a facility wherein the customer can issue cheques drawn at the base branch and payable at any branch at remote centre. These cheques will be treated as local cheques at the remote branch. There will be no collection charges and the credit will be given on the same day, as applicable to local cheques. Even if the cheque is dropped at any other bank other than the base bank, there will not be any collection charges.
For example, if you are paid a Multi city cheque by an account holder at a SBI branch in Delhi and you drop the same at any bank in Mumbai where you hold an account, then there will not be any collection charges.
Collection charge in SBI
The reason I came to write this post is about the collection charge levied on me by State Bank of India. Since I followed up on it I got my collection charge refunded.
I was paid a SBI Multi City Cheque by an account holder of SBI branch, Mumbai. I dropped the cheque in my account at SBI bank, Shastri Nagar branch in Chennai. This is the first time I am receiving a MCC, and I asked if there will be a collection charge for the cheque, she was not sure and asked to the person at the next counter, this person said in a clear way - "Yes. Charge Rs 1.5 for every thousand". I told her that this is a Multi City Cheque given by SBI itself, then why is the charge ? She said there will be collection charges for a MCC. I got my passbook updated with collection chrges getting debited and went to a "May I help you" like counter. I asked the lady the same question and was said initially, there will not be any collection charge, when I showed the passbook, she said, "Ohh, for this there will be collection charge". I asked here then what is the use of MCC ? Her reply was, it was payable at any of the banks in other areas, but there will be collection charges. I asked her, then what is the difference in depositing outstation cheque and MCC ? She doesn't have a clear answer. I left from the place and asked the same question with SBI customer care through email. I didn't get any reply even after three four followups. I put DGM of customer care as CC. Finally I got reply from DGM of Customer care that there will not be any collection charge. I told the matter, that I was charged for the same. He forwarded the message to corresponding department to take care of it. Meanwhile I forwarded the message to branch manager of the same branch where I was charged. I am yet to get a response. But I verified my account and found that the charge was refunded.
If I left this as such beleiving the so called executives at the branch I should have lost that amount debited as collection charge. The cheque itself clearly says, "Payable at Par at all SBI branches", then why do these people don't understand. Not sure if they do this purposefully or without knowledge. If it is without knowledge then what do they do without knowing their own products, and there is no way other than that we have to be their customers. SBI is a large and very trusted bank and is losing its name and trust in customers because of this kind of executives.

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shrilesh,  September 6, 2010 at 8:29 PM  

hi..i read the above thing. i think when the executive told you abt charges @ of Rs. 1.50 per 1000, she was wrong. the said charges are levied to the drawer of a multi city cheque issuer, and not to the payee.

Anonymous,  March 15, 2012 at 2:07 PM  

I have fully gone through the article written here.

I am clear on this that some of the Bank employees does not have much knowledge about their products. I was visited to SBI bank for partial withdrawal of PPF. The accountant on the branch does no know whether the interest amount for withdrawal will be given till previous month or not?. He say that and all computer will take care.

I am surprised to listen his words because may be the computer doing the work but as an employee he also should have knowledge about their products.... at least for the sake of customer.

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