Abstract:
In 2004 RBI deregulated the standards set for cheque collections. The cheque collection policies formulated by banks post deregulation were studied by Das and Das (2006). Subsequent developments and Reserve Bank of India’s intervention led to most of the banks modifying their cheque collection policies. With such revisions in place, one would expect that a comprehensive category rating (with respect to various parameters of the cheque collection policy) of the banks would indicate marked improvement. We investigate the scenario, on cheque collection policy of the banks, after more than 24 months of the release of the August 2006 Report [1]. Based on a multidimensional ranking method and the TOPSIS method for data integration, we categorize 30 banks with respect to the various parameters of the cheque collection policies as it stood during October 2008. Apart from establishing marked improvements in the policies framed, the study also identifies relative change of position of the banks with respect to the cheque collection polices. The analysis shows that RBI’s intervention led to marked improvement in the performance of most banks with respect to their cheque collection policies.
