1. Background

In order to help out and satisfy the need of our customers, the bank has introduced pre-FUNDED cheques with an upper limit inscribed on it to be used as gift cheques ; travelers cheques or as a normal cheque. The scheme shall operate in CBS branches only and such cheques are payable at par at all CBS branches.

2. Eligibility:

SB/CA account with us .

The cheques are printed as order cheques and attractively designed.

The cheques will be pre-funded.

The cheque books will be issued for a prepaid value of not exceeding Rs.10,000/- Rs.50,000/- / Rs.100000/- (i.e. cheque book containing 10 leaves - each leaf not exceeding Rs.1000/- ,Rs.5,000/- and Rs.10000/- )

Each cheque leaf shall bear a legend "Not over Rs.1000/- or Rs.5000/ or Rs.10,000/- "as the case may be.

A cheque book shall contain 10 leaves.

Normally one cheque book of a particular denomination shall be issued at a time. However, the depositor may request for another cheque book and bank may consider the requests .

The cheque shall not be valid for payment after six months from the date of issuance of the cheque book by the branch to the customer. The legend "Not valid after ................(date)" shall be printed on the cheques. The date to be entered by the branch shall be six calendar months after the date of issue of the cheque to the customer(s)

Guidelines

The product shall be delivered through CBS branches only and payable at par at all CBS branches .

a An existing customer maintaining Current Account /SB Account can open a separate current account under this scheme with the same customer ID solely for the purpose of getting Prefunded Cheques. This account will be considered a supplementary account to the normal account and not a separate account.

b The account under this scheme will be exempted from Ledger Folio charges, Minimum balance charges and intersol transaction charges ( i.e. no charges will be levied to the account of the drawer of the Prefunded Cheques even if the cheques are paid by some other CBS branch ).

However, charges per cheque book of 10 leaves will be levied upfront @ Rs.100/- for cheque denomination of Rs.10,000/- and @ Rs.50/- for denomination of Rs.5000/- and Rs.1000/-.

c Prefunded Cheques will be issued on multiple occasions till the customer decide to discontinue the facility.

d Cheque-books will be issued for a prepaid value of not exceeding Rs.10,000/-, Rs.50,000/- and Rs.100000/- (i.e. cheque book containing 10 leaves - each leaf not exceeding for Rs.1000/- , Rs.5,000/- or Rs.10000/- as the case may be )

4.3 Stop Payment

The depositor can instruct stop payment of such cheques through any of the CBS branches and extant procedure for handling such request shall be applicable.  

Procedural guidelines (Contd.)

a) The customer may at any time opt to discontinue the Prefunded cheques facility and close the account. The supplementary account will then be closed and balance if any will be paid by pay order or crediting to the normal account.

b) At the time of closure of the account, it will be mandatory for the depositor to surrender all the unused cheque leaves.

c) In the event of depositor’s inability to surrender the unused cheque leaves due to certain reason, the Bank should be properly advised by the depositor not to honour such cheques. Payment of the balance amount in the supplementary account in respect of such cheques shall be made after expiry of 6 calendar months from the date of issuance of the cheques as per the branch records and date entered on the cheque(s) indicating that the cheque(s) is/are not valid after that date.

Such cheques which are not utilized within the validity

period may be surrendered and fresh cheques may

be got issued on payment of applicable charges.

5. Service Charges

Service charges shall be levied upfront @ Rs.100/ per cheque book of 10 leaves of Rs.10000/- denomination and @Rs.50/- per cheque book of 10 leaves for Rs.5000/- and Rs.1000/- denominations. Actual Courier Charges shall also be recovered additionally.