Management Tip of the Day - Apply the Right Kind of Pressure to Innovators

Too many managers unintentionally kill innovation by relying heavily on carrots and sticks to motivate employees. When it comes to creativity, there's good pressure and there's bad. For example, avoid applying extreme time constraints. Competitive pressure with coworkers can also be a killer. Instead, use positive pressure in the form of a challenging assignment that's tough but that the team has the skills to solve. If you give people an important problem that no one else has been able to crack, it can supercharge motivation and creativity. - Today's Management Tip was adapted from "What Doesn't Motivate Creativity Can Kill It" by Teresa Amabile and  Steve Kramer. .

Quote gems - Japanese Proverb

"The reputation of thousand years may be determined

 by the conduct of one hour."


-Japanese Proverb

Stipulation of compensation for delay in Clearance of Local Cheques

RBI/2012-13/165 
DPSS.CO.CHD.No.284/03.06.03/2012-13August 13, 2012
The Chairman and Managing Director / Chief Executive Officer 
All Scheduled Commercial Banks including RRBs / 
Urban Co-operative Banks / State Co-operative Banks / 
District Central Co-operative Banks
Madam / Dear Sir

Stipulation of compensation for delay in Clearance of Local Cheques
As you may be aware, banks are required to specify the time line for
 realisation of local and outstation cheques in their Cheque Collection Policies
 (CCP) including the compensation payable for delayed credit, if any.
 However, on perusal of the Cheque Collection Policies (CCPs) and
 Compensation Policies of various banks, it is observed that there is
 no mention about the compensation in respect of the delay in
 realisation of local cheques. Instances of delayed credit to customers' 
accounts without any compensation for the delayed period beyond the
 time line indicated in the CCPs, in respect of local cheques, have been 
brought to our notice.
2. In this regard, a reference is invited to our 
circular DPSS. CO. (CHD) No. 873/03.09.01/2008-09 dated November 24, 2008,
 in terms of which, banks are required to specify the time line for realisation 
of cheques, including local cheques, in their respective CCPs. Paragraph 
4(ii) of the circular also states that in case of local cheques, banks 
shall permit usage of the shadow credit afforded to the customers' account
 immediately after closure of relative return clearing and in any case, 
withdrawal shall be allowed on the same day or maximum within an hour 
of the commencement of business on the next working day, subject to usual safeguards.
3. In view of the above, banks are advised to reframe their CCPs to include 
compensation payable for the delayed period in the case of collection of local 
cheques as well. In case, no rate is specified in the CCP for delay in realisation 
of local cheques, compensation at savings bank interest rate shall be paid for
 the corresponding period of delay.
4. As regards the realization period and compensation for delayed credit pertaining
 to outstation cheques, the instructions contained in paragraph 4(iii) of our circular
 dated November 24, 2008 remain unchanged.
5. Banks may note to give publicity to their revised CCPs through display board
in branches and on their website for better customer service and dissemination of 
information. A copy of revised CCPs formulated may also be forwarded to us.
6. The above instructions are issued under Section 18 of the Payment and Settlement 
Systems Act, 2007 (Act 51 of 2007).
7. Please acknowledge receipt and ensure compliance.
Yours faithfully,
(Vijay Chugh)
Chief General Manager