VOL II Final

i
UCO BANK
MANUAL OF INSTRUCTIONS
VOL. 2
CONTENTS
Page No.
CHAPTER I 1-+8
A. Demand Drafts Sold
1. Procedure for sale of Demand Drafts 1
2. Spoilt Draft Forms 12
3. Furnishing Specimen Signature of Purchaser to Drawee Branch 12
+. Custody of Demand Draft Books 13
S. Request to Stop Payment of Drafts 1+
6. Loss of Demand Drafts 16
7. Issue of Duplicate Drafts 16
8. Request for refund of money of lost Draft 23
9. Cancellation of Demand Draft 2+
10. Purchase of Demand Drafts 26
11. Guidelines in respect of Demand Draft Reconciliation for
closedfmerged branches 27
B. Demand Drafts Payable
1. Records of Drafts Payable 27
2. Payment of Drafts 28
3. Demand Drafts over six months old considered stale 32
+. Balancing 33
S. Problems in DD Reconciliation and their Solution - Role of Branches,
ROs and HO (Finance) 3S
6. Transfer of Balance of Draft Account to Head Office +1
ANNEXURE - I : Draft of Indemnity Letter in respect of issue of a
Duplicate Draft in lieu of lost one +3
ANNEXURE - II : Draft of Letter to be taken from Payee in Respect of
issue of a Duplicate Draft in lieu of lost one ++
ANNEXURE - III : Draft of Indemnity Letter in respect of Refund of
Amount of Lost Draft +S
ANNEXURE - Iv : Draft of Letter to be taken from Payee in respect of
refund of amount of lost draft +6
ANNEXURE - v : Register of Demand Draft cancelled +7
ANNEXURE - vI : Draft of letter to be taken from purchaser of demand draft
for its cancellation and refund of money +8
UCO BANK MANUAL OF INSTRUCTIONS
ii
CHAPTER II +9-S7
A. Mail Transfer Sold
1. Issue of Nail Transfer +9
2. Spoilt Nail Transfer Forms S3
3. Custody of Nail Transfer Forms S3
+. Request to Stop Payment of Nail Transfer S3
S. Issue of duplicate Nail Transfer S+
6. Cancellation of Nail Transfers S+
7. value dating of Nail Transfers S+
B. Mail Transfer Payable
1. Payment of Nail Transfer S+
2. Nail Transfers remaining unpaid for three years S6
CHAPTER III S8-70
A. Telegraphic Transfers Sold
1. Procedure for sale of Telegraphic Transfers S8
2. Request to stop payment of Telegraphic Transfers 63
B. Telegraphic Transfers Payable
1. Payment of Telegraphic Transfer 6+
2. Telegraphic Transfers remaining unpaid for three years 68
3. value dating of Telegraphic Transfers 69
+. Balancing 70
CHAPTER IV 71-81
A. Telephonic Transfers Sold
1. Procedure for sale of Telephonic Transfers 71
B. Telephonic Transfer Payable
1. Payment of Telephonic Transfer 76
2. Telephonic Transfers remaining unpaid for three years 80
3. Balancing 81
CHAPTER V 82-100
ELECTRONIC FUND TRANSFER
1. Procedural Guidelines for Electronic Funds Transfer 82
2. Procedure for initiating EFT Transaction-outward 82
3. Procedure for executing the EFT transaction - Outward 83
+. Procedure for executing the EFT transaction - Inward 8+
iii
S. Despatch of FT-2C to Service Branch 8S
6. Accounting Entries 8S
7. Sending of NIL Statement 86
8. Reconciliation 86
9. Role of the Service Branch 86
10. Role of the Regional Head 86
11. Reporting System 87
12. List of EFT Centres 87
13. Penal Charges for delayed credit 87
Annexure - I 88
Annexure - II 90
Annexure - III 9+
Annexure - Iv 9S
Annexure - v 96
Annexure - vI 97
Annexure - vII 99
Annexure - vIII 100
CHAPTER VI 101-107
SERVICE CHARGES ON REMITTANCES
2. Internal Powers for passing debit instrumentsfvouchers for payment 10+
CHAPTER VII 108-126
RTGS {Real Time Gross Settlement)
1. Preamble 108
2. Terminology 108
3. RTGS Nembership 109
+. Settlement & Funding Account 109
S. Transaction Types 110
6. RTGS Enabled Branch 110
7. Communication between the PI and Central System 111
8. Effecting Payments through RTGS System 111
9. Time-Schedule 113
10. Service Charge 11+
11. Procedure for Customer Initiated RTGS Funds Transfer 11+
12. Executing Customer related RTGS Funds Transfers-Outward 11S
13. Executing Customer related RTGS Funds Transfers-Inward 117
1+. Executing Inter-Bank Transactions - Outward 118
iv
1S. Responding to Inter-Bank Transactions - Inward 119
16. Transactions Initiated by Treasury Branch 119
17. `RTGS Settlement Account' and `RTGS Account' 119
18. System Administration 120
19. Internal Powers (for operating SFNS for making payments) 120
20. Reconciliation 121
21. Role of the Treasury Branch 121
22. Role of the Regional Office(s) 121
23. Other Issues 121
2+. Forms and Registers 122
Annexure I : RTGS Funds Transfer Application cum Payment Order [Form RTGS-1| 123
Annexure II : RTGS Outward Register [RTGS-2| 12S
Annexure III : RTGS Inward Register [RTGS-3| 126
1
ucovoI2\remItt1\4th proof\26.7.25J3.9.25J12.1.26
CHAPTER-I
DEMAND DRAFT
A demand draft is an order instrument drawn by one office of a bank upon another office of
the same bank (or a branch of another bank with whom it has agency arrangement) for a sum
of money payable on demand to a certain person or to his order.
Legally speaking, a demand draft is a combined form of a Bill of Exchange and Promissory
Note as it partakes certain characteristics of both of these instruments. It is drawn in the form
of a Bill of Exchange but since it is drawn by one branch on another branch of the same bank,
it assumes the characteristics of a Promissory Note.
In certain respects a demand draft is like a cheque. A cheque is a written order on a bank.
Demand draft is also a written order on a bank. A cheque is negotiable. Likewise demand draft
is also negotiable.
But in certain respects, the demand draft is different from a cheque. A cheque is issued by
an account holder, while the demand draft is issued by a bank. A cheque could be `Òrder'' or
``Bearer'' but a demand draft is always `Òrder'' and never ``Bearer''.
Statutory protection extended to banks in the collection and payment of cheques under the
Negotiable instrument Act is extended to the demand drafts also.
INTRODUCTION OF NEW SYSTEM OF ACCOUNTING AND RECONCILIATION FOR
DEMAND DRAFT ISSUED ON OR AFTER 1.1.1997.
A new Demand Draft Reconciliation (DDR) system has been introduced with effect from
1.10.1997. Under the new system, Demand Drafts have been delinked from general inter-branch
transactions and to be reconciled separately at Head Office.
Issuance of Drafts, payment of drafts, reconciliation of drafts and settlement of inter-branch
drawings have been delinked from earlier system of branch cheques, under the new system.
However, the earlier system will continue on :
1. The drafts issued upto and including 30.09.1997.
2. Drafts drawn and paid under agency arrangement
3. Drafts issued by our overseas branches on Indian Branches.
+. Branches should not to issue Demand Draft in satisfaction of any Inter Branch related
Transaction like Cash Remittance, Weekly Balance Transfer etc.
Regarding payment of Foreign Branch Demand Draft, existing procedures of payment by
debiting IBCN Paid Account will continue.
CHAPTER-I
2
The issuance and payment of drafts under new system is given below :
A. DEMAND DRAFT SOLD
1. Procedure for Sale of Demand Draft
1.1 Drafts can be sold on the places the Bank has a branch. At a place where there are
more than one branch of the Bank, draft should be drawn on the designated branch
unless the purchaser specifically requests for issue of a draft on a particular branch.
Drafts can be drawn on other banks also, where we do not have branches, by means
of agency arrangements. At a pIace where the Bank has opened ''ServIce
Branch'', the draft shouId be drawn on such branches.
The branches are to observe following rules in the matter of issuance of demand drafts on
the centre where bank has opened service branches :
a) In the centres where bank has a service branch, all demand drafts should be issued
on the service branch only, except in the following cases.
i) where the purchaser of the draft insists on issuance or an uncrossed draft (for
an amount below Rs. S0,000f-) with the intention of getting cash payment from
the drawee branch itself, the draft may be issued on any branch as per
purchaser's choice since service branch has no provision for cash payment.
ii) In cetain cases the payee may have an account with any other branch of our
brank in the same centre. A draft issued on the sub]ect branch will facilitate
getting payment against the draft on the date of presentation itself through
domestic transfer of the proceeds of the draft.
iii) Draft relating to collection proceeds of IBCs may be issued on a branch other
than service branch if the drawerfsender of the IBC so desires.
iv) The list of service branches of the bank as on 30.09.200S is given hereunder :
Sr. NAME OF THE CENTREJ Branch Code No.
No. SERVICE BRANCH
1. Ahmedabad 1782
2. Bangalore 1827
3. Bhopal 1826
+. Chennai 17+9
S. Indore 1828
6. Jaipur 17S3
7. Kolkata 1801
8. Numbai 173S
9. New Delhi 17+2
10. Pune 1830
11. Lucknow 18+1
12. Kanpur 18S3
13. Nagpur 18SS
CHAPTER-I
3
1.2 Head Office has fixed for each branch a limit upto which drafts can be drawn on it,
on any day. As far as possible, limits for drawings should not be exceeded. If, on
any day, total drawings on any branch, exceed the limit fixed by an appreciable amount,
drawee branch should be advised by a coded telegram.
1.3 Drafts are normaIy Issued at the request of the Bank's customers. However,
branches shouId not refuse the requests for Issue of drafts from persons who
mIght not be account-hoIders of the Bank.
1.+ An application should be obtained from the purchaser on Form B-17. The appIIcatIon
form shouId be scrutInIsed by the offIcIaI {meanIng thereby an offIcerJSpecIaI
AssIstantJHead CashIer) IookIng after the RemIttance Deptt. for the
foIIowIng :
i) The Bank has a branch at the pIace on whIch Demand Draft Is requIred.
ii) The commIssIon IncIudIng servIce tax has been correctIy computed and
entered In the voucher {thIs wIII serve as the CredIt DD Issued
Voucher).
iii) CompIeteJFuII name of the payee and not just the fIrst names have
been IegIbIy wrItten {AppIIcatIons contaInIng payee's fIrst name or
surname onIy such as RAJIB, VIJAY, ANIL KR., RAMESH KR., Instead of
say, RAJIV SHARMA, VIJAY DESAI, ANIL KUMAR SINGH, RAMESH
KUMAR VERMA, etc. shouId not be accepted).
iv) The appIIcant has gIven hIs fuII name and postaI address.
v) The appIIcant has sIgned the voucher and authentIcated aII cuttIngsJ
aIteratIons by fuII sIgnatures.
In the cIty of MumbaI, If cash tendered Is Rs. 1,J- and over, the
Income Tax Permanent Account Number of the appIIcant shouId be
quoted on the appIIcatIon form.
Note : HereInafter, wherever the word OFFICIAL Is used In thIs manuaI,
It wouId mean eIther an authorIsed offIcer or an authorIsed SpI.
AssIstant or an authorIsed Head CashIer etc.
1.S Sometimes, a customer sends a letter of authority requesting for issuance of draft to the
debit of his account. In such cases, it should be ensured that all the particulars about the
draft, which should be given in the draft application form, are also given in the letter. The
draft application form will have to be prepared by the branch. It should be seen that it is
prepared in accordance with the instructions contained in the letter and should be
authenticated by an official entrusted with the task of signing Demand Draft.
The signature of the customer on the letter requesting for issue of a draft should be
verified and initialled by an official. In case ]oint signatures are required for debit
authority, the same should be ensured. A debit voucher should be prepared for the
amount of the draft and exchange & commission. When the account is debited, the
CHAPTER-I
+
letter should be cancelled with an oblique line with notation, `È.P.'' for entry passed.
The cancellation should be dated and initialed by the official signing the debit voucher
and the letter should be attached to the relative debit voucher. Care must be taken
to ensure that draft is not issued unless the account of the applicant has been debited.
The credit DD issued voucher should bear stamp `àccount debited'' with the signature
of passing officer authenticating the debit.
On occasions, a customer may send through a messenger a cheque drawn payable to
the Bank for issue of a draft. In such cases, the cheque should be accompanied by
a covering letter requesting the issuance of the draft. The covering letter should mention
the cheque No. and amount connecting the same to the issuance of the draft. The
covering letter should also be signed by the persons authorised to operate on the
account. Without such authority the cheque should not be utilised to issue a draft as
mere tendering of cheque in favour of the Bank is no authority to make the remittance
on the instructions of a third party by debiting the drawer's account.
1.6 Demand Draft for Rs. 5,J- and above shouId be Issued to the debIt to
customer's account or agaInst cheques or other Instruments tendered by the
purchaser and NOT IN CASH.
1.7 In case the appIIcant has not aIready requested to cross the draft, the Branch
may request hIm to get the draft crossed In the Interest of the customer as
weII as the Bank.
1.8 Reserve Bank of India, Department of Govt. & Bank Accounts, Central Office, Numbai
vide circular No. DGBA : GAD : H-20769f+2-02-001f200+-0S dated 23.06.2006 has
communicated to us the revised procedure for cash payments of drafts purchased by
NinistriesfGovt. Department. Accordingly, it has been decided as a special case that
the bank branches may encash DDs above Rs. S0,000f- purchased by Ninistriesf
Department of Govt. of India in favour of their own outstation unitsfField Offices where
no drawing and disbursing officer is posted, for making genuine cash disbursements.
We reIterate here that these InstructIons are not appIIcabIe to any payee of
DDs, MTS, TTS other than Govt. Departments.
1.9 The draft application form should be sent to the Cash Deptt.fDeposit Deptt. as the
case may be, after entering in cash scrollftransfer scroll.
No action should be taken on the application form unless it bears a cash receipt stampf
account debited stamp and is duly signed by the Head CashierfAsstt. Nanager (Cash)f
Nanager (Cash)fany authorised official of Deposit Deptt.
1.10 Each branch should maintain a Demand Draft Sold Register (Form B-3S). As far as
possible DD's issue register should be printed incorporating details mutatis mutandis.
This Register should be maintained branch wise having separate folios for each branch.
The folios for various branches should be allocated in reference to the annual drawings
on them. The name of the drawee branch aIong wIth Its aIpha code and
CHAPTER-I
S
IdentIfIcatIon number should be mentioned at the top in the space provided for.
This will enable a branch to give separate serial number for each branch on which
drafts are drawn. The limit prescribed by Head Office for drawings DD's upon branch
should also be entered on the folio along with other Head Office instructions relating
to the drawing on that branch.
1.11 The Demand Draft application form should be entered in Demand Draft sold Register
on the page allotted to that branch. The drawee branch serial number and printed
number of draft should be noted. Thereafter the clerk will record the details of Demand
Draft in the Register-cum-Schedule of Demand Draft issued (DDR-1) in duplicate (with
a carbon interfaced). Both serial number and printed number of the draft will be
recorded in DDR-1 alongwith other details. The serial number will be a key field for
computer reconciliation. Hence serial number should be recorded legibly and without
any error.
NOTE : Branches should maintain a separate serial number for each branch on which
DDs are drawn and this number should be entered on the draft in addition to the
number printed thereon. This will enable payee branches to keep track of the number
of drafts issued on them, particularly when drafts are paid in the absence of advice.
Such serial numbers should be started afresh (i.e. from No. 1) on the first working
day of AprII each year and must be suffIxed by the fInancIaI year {e.g. 1J
96-97).
1.12 ISSUING OF DRAFT
(a) AII DDs shouId be Issued on MICR books onIy. No branch shouId Issue
NON-MICR Demand Draft. Demand Draft should be issued free of any
alterations, if any alteration is made in the draft, the alteration should be
authenticated under the signatures of the offIcIaIs signing it. `Ìf there are
alterations in amount, the draft is to be cancelled and a fresh draft issued''.
This change is effected in terms of HO Circular No. CHOfSUAf22f200S-06.
(b) There are four series of Demand Draft as given below to be used whenever
DDs are manually writtenftyped. Branch should use proper series of Demand Draft.
(i) NOT - DD to be issued for an amount below one thousand rupees.
(ii) NTT - DD to be issued for an amount of Rs. One thousand and above
but below ten thousand.
(iii) NOL - DD to be issued for an amount of Rs. ten thousand and above
but below one lac.
(iv) NTL - DD to be issued for an amount of Rs. One lac and above but below
ten lac.
(c) The Demand Draft may either be got typed on a Pinpoint Typewriter or may be
written in hand usIng reverse carbon.
CHAPTER-I
6
(d) A transparent tape shall also affixed on the amount in figure written on the
draft.
(e) If it is written in hand it must be neatly and legibly done so. Draft shabbily
written or draft having cuttings, though authenticated make a poor impression
on the purchaser bringing consequential problems of computer matching.
(f) Indelible ink should be used in the writing of Demand Draft. Branches having
Pinpoint Typewriter should see that all Demand Drafts are typed on such
typewriter.
(g) With a view to safeguarding the Bank against any attempted fraud, Cheque
Protectograph Nachine should be used for superscribing the amounts of drafts.
The Protectograph Nachine is to be used as indicated below :
`Ìf for example, the amount of the draft is Rs. 9,S66.60 the superscription should
read NOT OvER RS. 9,S67f-''.
(h) Amount in figures must be written as close as possible to the printed word
Rs. ..................... and without any gap so as to avoid unauthorised insertion. A
similar care may be adopted for amount in words. This is necessary to prevent
frauds especially when amounts like Rs. 30f-, Rs. +0f-, Rs. 60f-, Rs. 90f- etc are
to be used, since with a little ingenuity amounts in words and figures can be
altered to be made apparently correct and tally with each other.
(i) While preparing the draft, a hole in the relevant digit-cage on the right side of
the instrument must be punched. Under no circumstances, the digit-cage should
simply be crossed with ink. Punching of digit-cage should be ensured as this is
a security requirement. The issuing branch should affix its branch stamp and
identification number in space provided if these are not preprinted on draft leaf.
In case of borrowed DD books from another branch the lender branch's name
and identification number should be effectively obliterated so as not to cause
any confusion for the drawee branch.
NOTE :
i) All branches should posses Protectograph Nachines. These machines should be
kept in working order and whenever a machine goes out of order at a branch,
immediate steps should be taken to have it repaired. If it cannot be repaired,
urgent steps should be taken to procure another machIne eIther IocaIIy or
from Head OffIce.
ii) The markings on draft by Protectograph Nachine should be clear and legible.
Faint impression should be avoided and it should not be made near the top of
a Demand Draft so as to guard against such a marking being clipped off by
cutting a small part of the Demand Draft.
iii) Attempts should not be made to rectify mistakes in marking of Demand Drafts
CHAPTER-I
7
by Protectograph Nachine either by way of substituting the previous marking by
fresh impressions or by over-markings. In all such cases, a fresh draft should
be issued and the draft containing incorrect marking should be cancelled on
reference to the ChIef ManagerJSenIor ManagerJManagerJAssIstant
Manager. Instances have come to the notice of Head Office where the markings
by Protectograph Nachine have proved ineffective owing to their defective
impressions. It should always be seen that the markings are made as far away
from the edges of the instruments as possible and that the impressions come
out very clearly. Particular care should be taken to see that the amounts on the
instrument are so marked that no additions and alterations to them are possible
of being made even though attempted by Protectograph Nachine. To that end,
the ``STOP'' which has invariably to be put after the last digit of the amount of
draft must be seen to stand out and give a very clear impression on the draft.
1.13 The printed serial number and branch serial number as appearing on the Demand
Draft should be noted on the application form at the blank space in the left-hand
side of the application form.
1.1+ The particulars on counterfoil should also be carefully filled in.
1.1S An advice in B-12 is to be prepared for demand drafts where amount is Rs. 10,000f
- and above. No advice (B-12) is to be prepared for Drafts valued upto Rs. 9,999.99.
Advice has to be dispatched to drawee branch on the date of issue. IBCN need not
be issued on the basis of B-12.
1.16 The Demand Draft should be signed by two authorised officials (OfficersfSpecial
AssistantsfHead Cashier), who have been deIegated wIth sIgnIng powers.
However, in case of draft upto Rs. 1,J- they may be signed by a single authorised
official. The official should invariably append below his signature, the PF number
aIIotted to hIm while signing the draft.
To facilitate the identification and verification of signatures by using the Bank's book
on specimen signatures, a rubber stamp bearing the names of the officials and the
PF number allotted to him should be affixed below his signature.
NOTE :
i) Officers and other staff signing Demand Draft should realise and bear in mind
that their negligence or indifference in not appending their PF numbers on the
Demand Drafts signed by them places their colleagues at the payee branches in
an embarrassing fix and a position of avoidable risk. Having regard to the
seriousness of the implications and consequences arising through the PF numbers
not being appended against signatures on Demand Draft, staff who do not put
their PF numbers on Demand Drafts signed by them may make themselves liable
for disciplinary action and such loss as the cost of correspondence including the
cost of STD, if any, will be recovered from them.
CHAPTER-I
8
1.17 To avoId InconvenIences and hardshIps to the payees of the draft branches
must maII Form G-46 In advance where sIgnatorIes do not have theIr
sIgnatures prInted In the Bank's book of specImen sIgnatures.
RegIonaI offIce shouId aIso, In turn, obtaIn from branchesJoffIces specImen
sIgnatures of offIcIaIs whose sIgnatures are yet to be prInted and cIrcuIarIsed
and arrange for prIntIng and cIrcuIatIon at perIodIcaI IntervaIs.
VIde AdmInIstratIve Order No. 9JCMDJSS {Ref. Annexure-VII) InternaI
powers have been assIgned to dIrectIy recruIted offIcers, promotee offIcers,
specIaI assIstants and head cashIers to sIgn Demand Draft, MaII Transfer
advIces and Inter Branch CredIt Note etc.
1.18 Before signing a draft, the authorised official(s) should :
a) verify the proper series of DD (i.e. NOTfNTTfNOLfNTL(ref. 1.12.b.).
b) compare the particulars of date of issue, the amount, exclusive of Commission,
Service Tax etc. and amount in figure and words, the name of payee and branch
on which the draft is drawn with the draft application form.
c) see that draft is branded with the name of the issuing branch.
d) satisfy himselffthemselves that the branch has received the amount of the draft
from the purchaser. If a purchaser has paid in cash, each official signing draft
must satisfy himself that the relative voucher of the draft indicates that cash
has been paid into the Cash Department and bears the signatures of the Asstt.
Nanager (Cash)fNanager, CashfHead Cashier, if the purchaser has paid for the
draft by a cheque it must be ensured that draft voucher indicates that cheque
has been realised and bears signatures of cheques passing official of Deposit
Department.
1.19 The official(s) signing the draft should also initial the printed and serial number of
draft noted on the application form at the blank space in the left-hand side of the
application form. This is a necessary precaution to obviate the possibility of more than
one draft being issued against one application form. Draft advices and Demand Draft
Sold Register should also be checked and initialled by official(s) signing the draft. Entries
in DDR-1 should be checked and initialed by supervisory staff before the draft is
released. It must be ensured that draft serial number, drawee branch code, issuing
branch code, issue date, amount and other particulars are duly recorded without any
error in DDR-1.
1.20 The draft should be delivered to the purchaser after obtaining his signatures on the
reverse of the application form in token of his acknowledgement of receipt of the
draft.
1.21 The perforated acknowledgement portion containing details of cashfcheque received
should be given to the purchaser duly signed by the official concerned.
CHAPTER-I
9
1.22 All the drafts issued on a day should be entered in DDR-1 and must be checked and
initialed by supervisory staff. All columns of DDR-1 should be filled including Service
Tax. No column should be left blank. At the close of business for the day, the amount
and commission columns of DDR-1 will be totalled and figures taken to cashftransfer
columns under the `Draft Account' and Ìnland Exchange & Commission Received on
DDs' heads respectively on credit side of the cash book.
1.23 The underlying accounting entries are :
DEBIT CashfTransfer
CREDIT Draft Afc
CREDIT Inland Exchange & Commission received afc sub head-Drafts (for amount
of commission collected including service tax).
1.2+ Original copy of DDR-1 for a given date will be made as enclosure of the covering
summary statement of drafts account (DDR-+) to Regional Offices. Each day entries
in DDR-1 will begin on a new page even if space is available in the previous day's
page.
1.2S Where the Demand Drafts reIate to Iarge amount say, Rs. 1. Iakh and
above, the IssuIng branch shouId send teIegrams to drawee branches to
enabIe them to honour the drafts after takIng aII precautIons.
1.26 Procedure to be foIIowed for Issuance of demand draft by extensIon
counters :
a) Draft issued register and DDR-1 will be maintained in the same fashion as in a branch.
b) Draft leaves should be branded with Extension counter stamp together with the Parent
branch name and code number.
c) Extension counters to draw Demand Draft on other branches upto the limit fixed as
per the guidelines issued from time to time for drawing on branches.
d) Draft Advice (B-12) should be prepared for the amount exceeding Rs. 9,999.99.
e) The running serial number should start from 10001 for Extension counter. Where the
branch has two or more number of extension counters the serial no. will start from
20001 for the second extension counter and 30001 for the third extension counter
and so on. Drafts issued will be entered in DD issued Register (branch-wise) as at
present.
f) The responsibility of allotment of serial number for the extension counter rests with
the parent branch. The serial no. will again start from 10001, 20001, 30001 as narrated
above at the beginning of each financial year. The serial number should be written
CHAPTER-I
10
on the upper left corner of the draft. At the close of the business the amount columns
of the Register-cum-Schedule of Demand Draft Issued at the extension counter will
be totalled and the figure credited to the parent branch under a separate column DDR
in the extension counter daily sheet and sent to the parent Branch. The tear off sheet
of the Register-cum-Schedule of Demand Draft Issued (DDR-1) will be forwarded to
the parent branch to enable them to include the figure in their Day Book to the credit
of their Draft Account. The parent branch will attach the DD issue Summary prepared
by the extension counter to their DDR-1 covering summary of the day and include
the figure in the total amount of draft issued by them (parent branch).
1.27 USE OF COMPUTERISED DEMAND DRAFTS BY COMPUTERISED BRANCHES :
a) A new format of NICR Demand Drafts has been introduced by the bank to be
used by fully computerised branches. The salient features of this demand draft
are :
i) this draft leaf can be used for all denominations of demand drafts.
ii) There will be no cages in the amount column.
iii) The colour of the demand draft is pink with our normal background printing.
iv) The digit case [1 to 9| appear vertically on the right side of the draft and
the Series Category Cage OT, TT, OL and TL appear vertically on the left
side of the draft. The Series Category Cage, when appropriate cage is
punched would indicate as under :
OT - DD issued for an amount below one thousand rupees
TT - DD issued for an amount of Rs. One thousand and above but below
ten thousand.
OL - DD issued for an amount of Rs. ten thousand and above but below
one lac.
TL - DD issued for an amount of Rs. One lac and above but below ten
lac.
b) Demand Draft should be issued free of any aIteratIons.
c) Use of reverse carbon is not possible in such continuous printing type NICR
Demand Drafts to be used by fully computerized branches. However, a
transparent tape shall be affixed on the amount in figure written on the draft.
d) With a view to safeguarding the Bank against any attempted fraud, Cheque
Protectrograph Nachine should be used for superscribing the amounts of drafts.
e) Amount in figures must be written as close as possible to the printed word
Rs. ............................. and without any gap so as to avoid unauthorized insertion.
A similar care may be adopted for amount in words. This is necessary to prevent
CHAPTER-I
11
frauds especially when amounts like Rs. 30f-, Rs. +0f-, Rs. 60f-, Rs. 90f- etc. are
to be used since with a little ingenuity amounts in words and figures can be
altered to be made apparently correct and tally with each other.
f) The amount and series of the draft must be correlated with the figures in the
digit box and also in the series category box. A hole each in the relevant digit-
cage box on the right side of the instrument and also in the Series Category
Cage box on the left side of the instrument must be punched to indicate amount
and the series of demand drafts [OTfTTfOLfTL|. Punching of appropriate cages
should be ensured as this is a security requirement. Under no cIrcumstances,
the dIgIt cage and serIes category cage shouId sImpIy be crossed wIth
Ink.
g) The issuing branch must affix its branch stamp and IdentIfIcatIon number
in space if these are not preprinted on draft leaf.
h) While issuing demand draft manually, procedure for issuing Demand Drafts for
manual branches should be followed scrupulously as detailed herein-above including
inter-alia use of reverse carbon and fixing transparent tape on the amount in
figure written on the draft.
The specimen of new demand draft (NICR) is appended below :
Some times due to mechanical failure computerised demand drafts can not be
issued through computer printer by computerised branches. Under such situation
branches should use ordinary demand draft which they were using earlier for
issue of demand draft manually instead of using the above format. In other words
the above format is to be used only when the draft is issued through printer.
This would eliminate any confusion about computerised demand draft issued
manually written by handftyping. Under the circumstances it would be necessary
for all computerised branches to have a small stock of four series of demand
drafts namely NOT, NTT, NOL and NTL with them for issue in case of mechanical
failure of computerfprinter. Computerised branches are instructed to refrain from
issuing computerised demand draft manuallyftyping.
CHAPTER-I
12
1.28 TIME NORMS FOR ISSUE OF DEMAND DRAFTS
In a servIce Industry IIke BankIng, every attempt shouId be made by aII the
empIoyees to render prompt and courteous servIce to the customers. WhIIe
the emphasIs Is to render the servIce as promptIy as possIbIe, some norms
have been evoIved by the bank to set outer IImIts for renderIng varIous
servIces.
The tIme norms for Issue of demand draft are as foIIows :
`Àll requests for issue of Demand Draft should be promptly attended to and Drafts
duly made out should be handed over to the customers within the prescribed time
limit of 1S minutes.''
However, Bank may revise time norms for issue of Demand Drafts time to time.
It shouId be effort of aII empIoyees In the branch to compIete the above
transactIon weII before the stIpuIated tIme scheduIe. It shouId be ensured
that these norms are not exceeded In any cIrcumstances.
Posters gIvIng these norms {aIongwIth tIme norms for other Important
servIces at the branch) shouId be dIspIayed promInentIy at aII branches.
2. SPOILT DRAFT FORMS
2.1 When a demand draft form is spoilt in preparation, the fact should be noted on the
relative counterfoil under the initials of a signing official. The spoilt form should be
effectively cancelled by tearing off the space meant for signatures of the signing officials
and the words cancelled written on the body of draft in red ink. The torn draft form
should thereafter be attached to the counterfoil.
3. FURNISHING SPECIMEN SIGNATURE OF PURCHASER TO DRAWEE BRANCH
3.1 Sometimes the payee of demand draft who is the applicant himself requests the issuing
branch to send his specimen signature to the drawee branch (to obviate the trouble
of providing satisfactory identification to the drawee branch at the time of encashment
of the draft). Such a request should be discouraged. But if, in a special case, the
branch agrees to send the specimen signature, it should not be sent alongwith the
drawing advice of the relative draft but by separate post with a covering letter giving
reference to the number, date, amount and other particulars of the draft.
3.2 The Ietter shouId be Issued on Bank's Ietterhead under the sIgnature{s) of
the offIcIaI{s) who hasJhave sIgned the reIatIve drafts. The persons sIgnIng
the Ietter shouId record theIr names and PF Nos. beIow theIr sIgnatures
wIthout faII.
3.3 The drawee Branch after makIng payment to the payee based on hIs
IdentIfIcatIon through the Ietter, shouId preserve the same aIongwIth the
demand draft In the day's voucher bundIe.
CHAPTER-I
13
4. CUSTODY OF DEMAND DRAFTS BOOKS
+.1 The demand draft is a security form. Its receipt from Head Office and custody at
branch and use in the department should be governed by the same precautions as
are prescribed for cheque books {Refer voI. 5 of manuaI of InstructIons for
detaIIs).
+.2 The Demand Draft Book in use should remain in the custody of the offIcIaI-In charge
of the Remittance Department in a locked box. It should be handed over to the D.D.
Issue clerk when a demand draft is to be issued.
Bank has introduced a system for custody of high value demand drafts in view of
abnormal rise in incidences of lossftheft of such drafts from branches during the recent
past, as under. The system will safeguard against possible misuse of high value demand
drafts resulting in bank getting exposed to financial risks through frauds at different
branches, for substantial amounts.
i) It has been decided that ALL HIGH vALUE Demand Drafts in use at the branches
should be kept under the personal custody of one designated officer.
ii) At the time of issuing Demand Draft of more than Rs. 1 lac, the concerned clerical
staff should approach the designated officer for the leaf of Highvalue Demand
Draft (NTL), with the relative DD Issued Credit voucher (B-17), (duly receiptedf
account debited).
iii) The designated officer should scrutinise the DD Issued Credit voucher (B-17) and
after being satisfied about the credit entry, will part with the necessary leaf of
DD, duly noting the particulars in a note book and obtaining initials of the
concerned clerical staff for having received the DD leaf for issue.
iv) At the close of the day, the designated officer should call for the DD Issued
Credit vouchers once again and tally the number of DD leaves delivered by himf
her to the clerical staff.
v) Thereafter, the designated officer will keep the DD Book under Lock and key in
a box and ensure that they are kept safely overnight.
DesIgnated offIcers wIII be as foIIows for above purpose :
1. Nanager for Small Branches where no Asst. Nanager has been provided. If, Asst.
Nanager has been provided, hefshe would hold the concerned DD Books during
office hours.
2. Asst. Nanager for NediumfLarge branches, where no separate Officer-in-Charge
for DD Department has been posted.
If separate Officer-in-Charge for DD Department has been posted, hefshe will
hold concerned DD books during office hours.
3. In very Large and Extra Large Branches, Officer-in-Charge of DD Department will
hold the concerned DD Books during office hours.
CHAPTER-I
1+
+.3 There is always a danger of a demand draft leaf being surreptitiously taken away
from the book and fradulently used. Great care must, therefore, be taken by the
OffIcIaI-In-Charge of RemIttance deptt. in ensuring that no leaf is so removed.
The number of drafts issued during the day and the draft froms on hand should be
carefully reconciled by hIm every evening after the day's transactIons are over,
by actuaI countIng. The book should be locked in a steel box to be kept in an
almirah in the strong room.
+.+ In computerized environment branches are to maintain :
a) adequate stocks of security items
b) running serial number
c) ensure proper security of movement of numbered items like Drafts, Pay orderf
Nanager's chequefFD etc. while issuing new stocks as well as changing the
department or transfer of the incumbent (Ref. Chapter-21 Nanual of instructions
for computerized branches)
+.S GuIdeIInes regardIng use of borrowed Demand Draft Books
Some times it happens that a branch borrows demand draft books from other branches
as its stock of DD Books is exhausted. There Is a bIanket ban on foIIowIng such
practIce. Head Office has already advised branches to submit indent through proper
channel in time for all security printing books so that HO Stationery and Printing Deptt.
can arrange sending of requisitioned books in time. If under any circumstances, a
branch is compelled to use demand draft books supplied to other branches, such branch
must seek approval from their controlling office for resorting to such practice. On receipt
of approval, the branch must inform Head Office, Printing and Stationery Dept. about
such sanction with particulars of DDs receivedfborrowed, so that records are made
accordingly at Head Office for any reference that may be made. It is imperative on
the part of the branch borrowing such demand draft books to obliterate the existing
printedfstamped name of the branch from where it has been receivedfborrowed and
put their branch name rubber stamp with identification number duIy authentIcated
by the sIgnIng offIcer so that the payee branch Is not put In a fIx about the
IssuIng branch name.
Some times it may happen that alteration of issuing branch name is not authenticated
by the issuing branch. The payee branch must not return such DDs merely on the
ground that ''AIteratIon of IssuIng branch name Is not authentIcated'' but refer
the matter to their controlling office for guidance, as it is an internal matter of the
bank and customer should not unnecessarily be harassed. If such aggrieved customer
seeks legal recourse against the bank, the bank would be liable to compensate him
as per directives of the court of law.
5. REQUEST TO STOP PAYMENT OF DRAFTS
S.1 Sometimes, bank is approached by the purchaser of draft to stop payment of draft.
CHAPTER-I
1S
Branches should not agree to such requests. The purchaser of draft has no authority
to countermand payment of the draft and the branch would be ]ustified in refusing to
comply with the instructions countermanding payment. If there is any dispute as to
the payment of the money covered by the draft between the purchaser and the payee,
it would have to be settled between them. In such a case, the purchaser should be
asked to obtain the orders from a competent court restraining the bank form paying
the draft.
Note: A bank draft differs substantially from an oridnary cheque. A cheque is a Bill
of Exchange drawn by an account holder on a bank payable on demand; or, in other
words, it is an order upon a bank purporting to be drawn upon a deposit of funds
for the payment of a certain sum of money to a person named, or to hIs order or
bearer, on demand. As between himself and the bank, the drawer of the cheque has
the power of countermanding his order of payment at any time before the bank has
paid it, or committed itself to pay it. A bank draft is of an entirely different nature.
It is a Bill of Exchange, drawn by the bank upon itself, and is accepted by the act of
issuance. The bank in such case, is the debtor and its obligation to pay the draft is
like that of a maker of any other negotiable instrument payable on demand. The right
to countermand payment as applied to ordinary cheques does not apply to drafts.
S.2 Sometimes drawees of bills approach the bank with a complaint of cheating by the
drawers and request the bank to stop payment of draft representing the remittance
of proceeds to the drawers. It should be noted that the bank is an agent for collection
of the drawer or the party from whom the bill has been received and there is no
privity of contract between the bank and the drawee. Branches therefore should totally
disregard the requests of the drawees and carry out the remittance of proceeds.
S.3 The case would be different if the bank is served with a Prohibitory Order by a
competent court of law. The Prohibitory Order should be studied carefully and the
directions contained therein fully complied with. If the Order directs stopping remittances
of proceeds or stopping drafts issued, these should be carried out as the Order is
legally binding on the bank.
Note : It sometimes happens that the drawee who has paid a bill wants to detain
the proceeds in the hands of the collecting bank on the plea that he is arranging to
have a Prohibitory Order served. Complying with the drawee's request might
unnecessarily involve the bank in complications which should be avoided.
S.+ When a Prohibitory Order is served requiring the bank to stop a draft, the branch
receiving the order should immediately inform the drawee branch by telegram of the
order, giving the name of the authority, the number and date of the order and instruct
the drawee branch not to pay the draft on presentation. The drawee branch should
carry out the instructions implicitly and return the draft unpaid. While returning the
draft, care should be taken to write legibly on the draft words to the effect that the
payment of the draft has been prohibited by a court, quoting thereon the name of
CHAPTER-I
16
the authority and number and date of Order. Such a written statement on the draft
is absolutely necessary as, thereby a notice of the Prohibitory Order is given to all
persons to whom the draft may be subsequently transferred by endorsement or delivery.
6. LOSS OF DEMAND DRAFTS
6.1 Branches should advise the purchasers to send demand drafts to the payee by
Registered Post when amount is more than Rs. 2S0f-.
Note : In case of a draft sent by ordinary post, postal enquiries are not very effective
because the Post Office does not keep a record of unregistered articles; if a draft is
sent by registered post and is reported lost the matter should be taken up with the
Postal Authorities within six months of the date of posting to obtain a definite reply
from them.
6.2 AII efforts shouId be made to convInce the purchasers that they can best guard
against the demand draft being lost in transit or falling into wrong hands by crossing
and sending it by Registered Post only.
7. ISSUE OF DUPLICATE DRAFTS
Section +SA of The Negotiable Instruments Act, 1881 states that ``Where a bill of exchange
has been lost before it is overdue, the person who was the holder of it may apply to the
drawer to give him another bill of the same tenor giving security to the drawer, if required,
to indemnify him against all persons whatever in case the bill alleged to have been lost
shall be found again. If the drawer on request as aforesaid refuses to give such duplicate
bill, he may be compelled to do so.''
Therefore in view of the above, while the Bank is required to issue a duplicate when original
has been lost before it is overdue this would be done by the Bank only after Bank is
satisfied that (i) the original has been lost and (ii) the person applying was the holder thereof
and (iii) on obtaining indemnity as may be required by the Bank. This, then is the legal
position regarding issuance of a duplicate.
7.1 When the purchaser of a draft reports its loss to the issuing branch, proper enquiries
should be made as to the circumstances which led to its loss. If the draft is reported
to have been misplaced, the party should be instructed to make a diligent search to
find it out and in the case of loss in transit, he should be asked to take up the
matter with the Post Office. In due course, he must advise the issuing branch of the
result of the enquiries.
7.2 In the meantime, the issuing branch should communicate the loss of the draft giving
full details such as date, amount, name of the payee, the printed as well as control
number of the draft etc. to the drawee branch and ascertain from them if the draft
still remains unpaid in their books asking them at the same time to exercise caution
in the event of the draft being presented for payment.
7.3 The drawee branch should record the loss carefully in RED INK in the relative draft
advice or D.D. Payable Register as the case may be. This must be done under the
CHAPTER-I
17
signature of the supervisor dealing with D.D. Payable.
7.+ A draft is bank's obligation to pay and therefore bank cannot lightly refuse payment
of a draft, if it is presented for payment, even though reported lost. In case a lost
draft is presented at the branch on which it is drawn, and to which it was reported
lost, it should be returned unpaid with the ob]ection, ``Draft reported lost; shall pay
on a bank's guarantee.'' By bank here is meant a first class bank, a member of the
Clearing House. If there is no clearing house, it should be a Scheduled Bank of good
standing.
If such a guarantee is given the draft should be paid BUT ONLY AFTER ASCERTAINING
FRON THE ISSUING BRANCH THAT NEITHER A DUPLICATE DRAFT HAS BEEN ISSUED
NOR HAS THE ANOUNT THEREOF ALREADY BEEN REFUNDED TO THE PURCHASER
BY THE ISSUING BRANCH. Natter should also be reported to Head Office.
7.S A duplicate draft should not be issued for the mere asking for it by the purchaser.
When the Nanager is satisfied that the purchaser was the holder of the draft and
that it had not been delivered to the payee, arrangements must be made for issue of
a duplicate.
7.6 Before issuing a duplicate draft, the following formalities should be observed :
a) A letter of request for issuing a duplicate draft stating therein the circumstances
of the loss and that the draft was not delivered to the payee should be obtained
from the purchaser of draft. The signature of the purchaser on this letter should
be compared with his signature on the application for draft. A suitable note should
be made in red ink in the Demand Draft Sold Register.
Note : It is the purchaser alone and no other person who should approach the branch
for the issuance of a duplicate draft. If the payee requests the IssuIng branch
to Issue dupIIcate draft, hIs request shouId not be acceeded to.
It may at times happen that the application for purchase of draft is signed by a munshi,
clerk or any empIoyeeJagent of an individual or firm. In such cases the letter of
request for duplicate draft and indemnity letter as mentioned hereafter must be got
signed by principal also in addition to its being signed by the person who applied for
the draft.
1. Issuing branch will report loss of draft to the drawee branch and Head Office
Draft Reconciliation Cell. Issuing branch must ensure that the Draft Account
Summary for that date has been mailed already.
2. The intimation of the loss to the paying branch will be sent as follows :
Draft Amount Mode of maIIIng
Upto Rs. 2,S00f- By ordinary post
Rs. 2,S01 to Rs. 10,000f- By Registered Post
Above Rs. 10,000f- By TelegramfTelex
CHAPTER-I
18
The format of intimation will be
DD-Serial No. Dated
Favouring ........................................ for
Rs. ...................... (Rupees ..................................................................................)
reported lost, cancelling the original. Confirm payment or non-payment by
TelegramfTelex. If not paid, note to exercise caution.
The Drawee branch on receipt of this intimation will go through the records upto
6 months and confirm non-paymentfpayment of the Draft as follows :
RYTfRYL .................................. DD Serial Number .....................................
Dated ...................... favouring ...................................................... for
Rs. ............................. (Rupees .......................................................
................................................................) Not received for paymentfmarked for
cancellation caution OR RYTfRYL ............................................................. DD Serial
Number ......................................... dated ........................................
favouring ......................................................... for Rs. .................................
(Rupees ................................................................................ only) paid
on .................................... through CashfClearingfTransfer.
(3) If draft paid transactions are computerised in the paying branch, the draft reported
lost will be `marked' in the computer data file in such a way that no payment
of the lost draft can take place inadvertently. Paying branch will scan the earlier
payments and inform the issuing branch and HO-DDR Cell regarding the status
of the lost draft.
(+) Paying branch (computerised or not computerised) will maintain a DD Lost
Register. Complete details of the drafts reported lost will be entered in the
Register. This Register should be maintained uptodate and referred to on a regular
basis whenever drafts are paid. (As in the case of Cheque Reported Lost).
(S) Head Office-Draft Reconciliation Cell will scan the available recordsfcomputer data,
verify payment or otherwise of the draft upto the last date of receipt of summary
from paying branch, and intimate the result to the issuing and paying branches,
indicating the date upto which data was verified.
(6) Logically, the paying branch is in a better position to know the latest status of
a lost draft, as its payment records are uptodate and it holds the paid
instruments. Queries on the lost drafts must, therefore, be attended to, primarily
by the paying branch.
b) Confirmation from drawee branch that (i) the draft is still outstanding in
their books and (ii) the loss has been noted by them, should be obtained.
c) Stamped indemnity in the prescribed form (specimen as per Annexure I)
should be obtained duly executed by the purchaser. If payee also executes
CHAPTER-I
19
it the issuance of the duplicate would be expedited, but it should not be
insisted upon. A letter should also be obtained from the payee stating that
he has not received the draft and that he has no ob]ection to a duplicate
draft being issued to the purchaser (Specimen as per Annexure II).
When the draft is lost after it has been received by the payee, the indemnity
should be executed by payee and a confirmation from purchaser or a no
ob]ection letter from him should also be taken. When the lost draft was
negotiated by the payee and thereafter lost, the persons with whom it was
negotiated should be made a party to indemnity alongwith payee.
d) The purchaser and the payee should undertake to return the original draft
to the Bank if hefshe comes across the same in future, without encashing
the same.
AuthorIty granted to Managers to Issue dupIIcate drafts and the requIrements
REQUIREMENTS
Amounts If orIgInaI draft was If orIgInaI draft was AuthorIty to
sent by ORDINARY sent by REGISTERED Branch to Issue
POST to payee & POST to payee & dupIIcate draft
presumabIy not presumabIy not
receIved by hIm receIved by hIm
Any amount 1. Identification of 1. Confirmation from No Head Office
purchaser by comparing drawee branch about permission is
his signature on the non-payment of draft necessary
letter for the duplicate
draft and his signature
on the application for
draft
2. Confirmation of drawee 2. A no ob]ection letter
branch about non- from the purchaser
payment of draft. and indemnity letter
from the payee.
3. Indemnity by the 3. If the draft has been
purchaser alongwith negotiated the person
two sureties. in whose favour it was
negotiated should
also be made a party
to Indemnity.
+. Letter from payee about
non-receipt of draft and
that he has no ob]ection
to a duplicate draft being
issued to purchaser.
NOTE :
i) The indemnity and all other papers should be held in a folder which should be made available
to the inspecting officer for examination
CHAPTER-I
20
ii) In case of Issue of dupIIcate draft to staff members, the Ietter of IndemnIty may
be obtaIned on an unstamped paper and the requIrement regardIng surety may
be waIved. ThIs Is appIIcabIe to Issue of dupIIcate drafts to Banks aIso.
7.7 When a DD sent by a branch on account of proceeds of bIIIs receIved for
coIIectIon, DPG InstaIments, other dIrect payments to partIes etc. Is reported
Iost, a Ietter shouId be obtaIned from the payee, {as per specImen gIven
beIow) before IssuIng a dupIIcate.
To,
The Manager,
UCO Bank
................................. Branch
Dear SIr,
Sub. : Our BIII No. ................... dt. ................ for Rs. ......................
Ref. : Your DD No. ................... dt. ............... for Rs. ......................
Issued by you on your ...................... branch In our favour.
ReferrIng to your Ietter no. ....................... dt. .................. we have to Inform you that
we have not yet receIved the orIgInaI draft sent by you as a remIttance agaInst the
above bIII reaIIsed by you on our account. We request you to treat the orIgInaI draft
as canceIIed and Issue us a dupIIcate.
We hereby undertake to return to you the orIgInaI draft wIthout encashIng It or
deaIIng wIth It In any manner, In case It comes Into our possessIon at any subsequent
tIme.
Yours faIthfuIIy,
SIgnature{s)
Note : NormaIIy, no IndemnIty need be asked for In such cases.
7.8 Before issuing duplicate draft, appropriate service charges including service tax, if any
should be recovered.
7.9 1. The duplicate draft will be issued from the proceeds of the lost draft and will
be a new draft bearing the current date of issue and new serial number. A debit
voucher and credit voucher (B-17) will be prepared by the branch, recording all
relevant details of the lost draft and also the fact of issuance of duplicate and
will be entered in the transfer scroll as per procedure.
2. The lost draft is to be treated as cancelled and entered in Register-cum-Schedule
of drafts cancellled (DDR-2A) and in absence of DDR-2A it may be entered in
DDR-2 with the name and numeric code of drawee branch in the column of
drawer branch.
CHAPTER-I
21
3. At the top of duplicate draft so issued the branch has to write in red ink
`Duplicate issued in lieu of original draft No. ................... dated .....................
reported lost'.
The drawee branch should be sent an advice (where applicable) on the face of
which the words ``Duplicate Draft'' should be written in red ink in a prominent
manner.
7.10 In the Demand Draft Sold Register and also in the counterfoil of the original draft
the number of the duplicate draft should be noted with the following words Òriginal
draft lost and not to be paid. Duplicate draft no. ........................ issued
on ....................... .'' In the same manner, in the counterfoil of the duplicate draft
reference of the original draft in lieu of which the duplicate draft has been issued
should be carefully noted.
7.11 On receipt of advice that a duplicate draft has been issued, the drawee branch should
make a note to this effect against the relative entry in the Draft Payable Register.
Whenever duplicate DDs are issued for large amounts, say Rupees one lakh and above,
a coded message should be sent to the drawee branch informing issuance of duplicate.
Charges should be debited tofrecovered from the Purchaser.
IMPORTANT : DupIIcate draft, In IIeu of Iost draft, upto and IncIudIng
Rs. 2,5J- may be Issued to the purchaser on the basIs of adequate
IndemnIty and wIthout InsIstence on seekIng non payment advIce from
drawee offIce. The drawee branch may mereIy be cautIoned In thIs regard.
7.12 PAYMENT OF ORIGINAL DEMAND DRAFT REPORTED LOST
7.12.1 Where a dupIIcate draft Is Issued and the orIgInaI of It Is presented for
payment eIther before or after the payment of dupIIcate, It shouId not
be paId. The same shouId be returned wIth the remarks ''DD reported
Iost. DupIIcate Issued. PIease Iet us know how you came to be In
possessIon of the draft.'' A remark shouId be wrItten across the face
of the DD In RED INK-''DD reported Iost. OnIy DupIIcate Issued Is vaIId.''
If any compIIcatIon or dIspute arIses, branch shouId teIegraph H.O. for
advIce.
7.12.2 Where the amount of a draft {WhIch Is reported Iost) has been refunded
to the purchaser by the IssuIng branch and the DD Is subsequentIy
presented for payment at the drawee branch, It shouId not be paId. The
draft shouId be returned wIth the remark ''DD reported Iost. Amount
aIready refunded to purchaser.'' The same remarks shouId be wrItten
across the face of the DD In RED INK, AgaIn, If any compIIcatIon or
dIspute arIses, branch shouId teIegraph H.O. for advIce.
7.12.3 In both the cases wIth above as branches wouId be havIng a Ietter from
the payee decIarIng that he has not receIved the draft; has no objectIon
CHAPTER-I
22
to Issue of dupIIcate draftJrefund of money to purchaser and that he
wouId surrender the draft to the Bank for canceIIatIon If he
subsequentIy receIved the draft, It wIII be In order for them to refuse
the payment of the orIgInaI DD as outIIned In 7.12.1 and 7.12.2 above.
7.12.4 CASES CONCERNING DDs UPTO Rs. 2,5J-.
a) SInce branches are authorIsed to Issue dupIIcate drafts upto
Rs. 2,5J- by just forwardIng a cautIon notIce and wIthout waItIng
for non-payment advIce from drawee branch, It may sometImes
happen that the orIgInaI DD Is paId before receIpt of the cautIon
notIce. In such cases as & when the cautIon notIces are receIved,
the drawee branches shouId check up theIr records and Inform the
IssuIng branch ImmedIateIy about the payment of the orIgInaI
gIvIng detaIIs regardIng {I) Amount {II) Date paId {III) Name of
payeeJendorsee to whom paId. The IssuIng branch shouId In turn
contact the purchaser ImmedIateIy and get back the dupIIcate from
hIm.
b) If the dupIIcate draft Is recovered from the purchaser the draft
shouId be marked across wIth the word ''CANCELLED AS ORIGINAL
PAID ON ..................... AS PER ADVICE OF DRAWEE BRANCH'' In red
Ink and the date of canceIIatIon put beIow It aIongwIth the
sIgnature of an authorIsed offIcIaI of the remIttance department.
The portIon of the draft where the offIcIaIs havIng sIgned shouId
be torn off and the DD kept In a separate fIIe. SuItabIe remarks
shouId be made In the DD Issued regIster and a Ietter shouId be
wrItten to the drawee branch confIrmIng that the dupIIcate draft
has been canceIIed and Is In theIr possessIon.
c) If on the other hand the IssuIng branch Is Informed by the
purchaser that he has aIready forwarded the dupIIcate draft to the
payee, the fact must ImmedIateIy be conveyed by IssuIng branch
to the drawee branch. If the dupIIcate draft Is subsequentIy
presented to the drawee branch for payment, It must pay the same
after exercIsIng great deaI of care and Inform the IssuIng branch
the detaIIs of the payment IIke {I) Amount {II) Date paId {III) payeeJ
endorsee to whom paId. The IssuIng Branch shouId then faII back
on the IndemnIty obtaIned at the tIme of IssuIng dupIIcate draft
to recover the amount reIatIng to the payment of the orIgInaI
demand draft from the purchaser.
d) However, If It so happens that the dupIIcate draft Is presented for
payment before receIpt of the cautIon notIce, the presentatIon of
such dupIIcate draft may ItseIf be treated as a cautIon notIce. The
draft may be paId after exercIsIng care and ensurIng that the
CHAPTER-I
23
orIgInaI has not been paId. If subsequentIy the orIgInaI Is presented
for payment, It shouId be deaIt wIth as outIIned In 7.12.1 above.
S. REQUEST FOR REFUND OF MONEY OF LOST DRAFT
8.1 Some times the purchaser of the lost draft requests for the refund of the amount
instead of issuing of a duplicate draft. In such cases, utmost caution must be exercised
and all cases where amount involved is Rs. 1.00 lac or over should be referred to
Regional Office.
8.2 Where the draft amount is below Rs. 1.00 lac, the branch should refund the amount
to purchaser after getting the following formalities completed.
a) A letter of request for refund of money should be obtained from purchaser of
draft. The signature of the purchaser should be compared with his signature on
the application for draft.
b) A stamped indemnity in the prescribed form (specimen as per annexure III) should
be obtained duly signed by purchaser ]ointly with two respectable sureties who
must be carefully and ]udiciously selected. Credit reports in the standard form
should be drawn up on them and held in the records.
c) A letter (specimen as per Annexure Iv) should be taken from the payee to the
effect that he has not received the original draft and that he has no ob]ection
if the amount of the draft is refunded to the purchaser. The signature of the
payee on this letter should be got verified by his bankers.
Note : It may at times happens that the application for purchase of demand draft
is signed by a munshi, clerk, assistant or employee or agent of an individual or
firm. In such a case, the letter of request for refund of money and indemnity
letter should be got signed by the principal also in addition to its being signed
by the person who applied for the draft.
d) Corfirmation should be obtained from the drawee branch that the draft is still
outstanding in their books and they have noted its loss in their books.
e) Thereafter the payment of draft amount should be made to the purchaser by
means of Pay order or by crediting purchaser's account with the branch.
f) The following entries should be passed :
Debit : Draft Account
Credit : Pay OrderfPurchaser's Account.
Note : i) Only the actual amount of the draft should be paid to the purchaser i.e.
commission should not be refunded.
ii) A receipt should be obtained from the purchaser of the DD as follows :
``Received from UCO Bank ....................... Branch, a sum of Rs. .................
(Rupees .....................................................) being the amount of their DD
CHAPTER-I
2+
No. ........................... dated .................................... on their ...............................
branch reported lost and cancelled at my request, paid to mefus vide their Pay
order No. .................. dated ..................... OR by transferfcredit to myfour Afc.
No. ..................... with them.
g) In the Demand Draft Sold Register a suitable remark should be made against
the relative entry of draft issued.
h) Refund of amount of lost draft to the purchaser is to be treated as cancellation
of draft. It should be entered in DDR-2A with suitable remarks that the amount
has been refunded to the purchaser against the indemnity letter.
i) A letter should be sent by issuing branch to drawee branch advising them :
i) the particulars of such draft i.e. date of issue, control and printed number,
amount and name of the payee.
ii) that the draft has been lost and its amount has been paid to purchaser
against indemnity letter.
iii) That they should not pay the original on presentation and return the same
if presented with the remark ``DD reported lost, amount has already been
refunded to purchaser''. They should also write the same remarks across
the face of DD in red ink.
]) Service charges as applicable for cancellation of demand draft may be recovered.
9. CANCELLATION OF DEMAND DRAFT
9.1 Sometimes a purchaser of a demand draft returns the draft to the issuing branch and
requests the branch to cancel it and refund the amount.
9.2 Legal position of bank with regard to cancellation of draft is as follows :
``Delivery is one of the essential ingredients of the making, acceptance or endorsement
of a negotiable instrument. The contract on a negotiable instrument is, without delivery,
incomplete and revocable. It is, therefore, only after delivery that the payee of the
draft can claim any rights in respect of it and become entitled as a holder to receive
or recover its amount. Without getting the draft the payee will not be in a position
to present it and without presenting it he cannot give effective discharge to the bank
to which it is addressed.
Before the draft is delivered to the payee, therefore, it is open to the purchaser to
get the draft cancelled and to instruct the bank not to pay the amount to any one
else but to return it to him. Before the draft is handed over to the payee as long as
it is retained by the purchaser in his hands, the purchaser can treat the bank which
issued the draft as his own debtor and can as a creditor demand amount from the
bank and the bank would be liable to satisfy the demand. The only thing it can insist
on is that the draft should be handed back to it so that there may be no chance left
of any other person making a claim on its basis.
CHAPTER-I
2S
It is only after the draft has been delivered to the payee and his rights have come
in that the purchaser's right to claim the money and to stop the payment becomes
disputable. At that stage, the bank can reasonably say that in order to have an effective
discharge from liability, it is necessary to have the consent of the payee before the
amount can be paid to the purchaser.''
9.3 Thus in deciding whether the request for cancellation of draft should be complied with
or not the main point to be considered is WHETHER THE DENAND DRAFT WAS
DELIvERED TO THE PAYEE OR NOT.
9.+ If the request for cancellation is received, so shortly after its purchase, i.e. the same
day or on the following day, that here is no possibility of its having been delivered to
payee at all, the request for cancellation should be entertained.
9.S If on the other hand, there was some time lag between the purchase of draft and
the receipt by the bank of the request for its cancellation and even if draft does not
bear any endorsement of payee, the branch should obtain a letter as stated in
paragraph 9.7(a) hereunder.
9.6 If the draft bears any evidence of its delivery to the payee andfor further negotiation,
utmost care should be exercised in complying with the request for cancellation of such
drafts. In such cases, it is necessary to get all the endorsements cancelled by the
persons who have made them and a letter must be obtained from the payee or the
last endorsee that he has no interest in the demand draft and he has no ob]ection
to its cancellation and payment of the amount represented by it to the purchaser.
The signature of payee should be verified by his bankers.
Note : In the above paragraphs the procedure for canceIIatIon of a draft has
been IaId down assumIng that In normaI course such requests wouId emanate
from the purchaser onIy. Where such a request Is receIved from the payee
or other hoIders, the matter may be referred to Head OffIce.
9.7 While cancelling drafts, the following procedure should be adopted :
a) A letter requesting for cancellation of draft and refund of its amount should be
obtained from the purchaser of draft by the issuing branch further stating therein
that the draft was not delivered to the payees. This application should be
accompanied by the relative draft. A format of such application is annexed hereto
and marked Annexure vI.
It may at times happen that the application for purchaser of draft has been
signed as purchaser by a munshi clerk assistant or empIoyeeJagent of an
individual or firm. The letter of request for cancellation should be got signed by
the principal also in addition to its being signed by the person who applied for
the draft.
b) the pruchaser should be properly identified by comparing his signature on the
letter of request for cancellation with his signature on the application for draft.
CHAPTER-I
26
c) The purchaser should be requested to endorse the relative draft in the form
``Received Payment by cancellation.''
d) The draft should be marked across with the word ``cancelled'' in red ink and the
date of cancellation put below it. It should be pasted to the debit voucher after
tearing off the portion where the officers have signed.
e) Thereafter the payment of draft amount should be made to the purchaser by
means of Pay Order or by crediting his account with branch.
f) The following entries should be passed :
Debit - Draft Afc.
Credit - Pay OrderfPurchaser's Account.
Note : Only the actual amount of the draft should be paid to the purchaser i.e.
the commission and other charges should not be refunded.
g) In the Demand Draft Sold Register a remark `Cancelled on ..................... should
be made against the relative entry of draft issued.
h) A letter should be sent to the drawee branch :
i) advising them the particulars of cancelled draft e.g. date of issue, control
and printed number, amount and name of payee.
ii) Confirming that the draft has been cancelled and that cancelled draft is in
their possession.
i) A cancelled draft is to be dealt and treated as being paid by the issuing branch
it self.
]) Issuing branch should report in DDR-2A (Register-cum-Schedule of drafts cancelled)
and in absence of DDR-2A, in DDR-2 with the name and numeric code of drawee
branch in the column of drawer branch with suitable remarks there against.
k) Record of drafts cancelled should be kept in a Register. (Proforma as per
Annexure-v)
1. PURCHASE OF DEMAND DRAFTS
10.1 Whenever a request is made by a person purporting to be beneficiary of a draft drawn
on another branch, for purchase of the same and payment in cash, the Nanager
should make suitable enquiries and find out the circumstances that lie behind the
request, Ordinarily such drafts should not be purchased. If a branch under any special
circumstances has to pruchase a demand draft, it should make sure that its amount
goes to the credit of a constituent, well reported upon and of substantial means and
worth, and where considered necessary, a letter should be taken from the party holding
himself responsible for any claims on such a demand draft.
10.2 Normally, branches should not entertain such requests. As a matter of principle, we
should not purchase our own drafts.
CHAPTER-I
27
11. GuIdeIInes In respect of Demand Draft ReconcIIIatIon for cIosedJmerged branches.
A large number of unviable branches of the bank are being closed or merged with nearby
branches. As the process will have direct bearing on the demand draft transactions reported
through DDR schedules and also on the reconciliation being done at Head Office, all our
branches and offices working across the country are to be guided by the following
instructions.
GuIdeIInes to be foIIowed by the Branch beIng merged :
Branch which is being merged should transfer the balance outstanding in Demand Draft
Account as at the close of business on its last working day to Head Office through ``HEAD
1997'' in a manner similar to the annual tranfer of balance on 31st Narch every year. Draft
Account would thus show NIL balance on the date of closurefmerger. Before transfer, branch
being merged should ensure that Draft Account as per G.L. tallies with Draft Account as
per DDR Iv. Draft Account balance should in no case be transferred to the branch with
which it is being merged.
GuIdeIInes to be foIIowed by Mergee branch :
1. Drafts issued on the merged branch prior to the date of merger and presented for
payment at the mergee branch on a later date should be paid by the Nergee branch
and reported in the DDR-2 schedule as if the Draft was drawn on the Nergee branch
itself.
2. It may also happen that a draft issued by a merged branch is presented for cancellation
at the Nergee branch. In such case also, the Nergee branch should do the needful
after observing all required formalities and report the transaction in DDR 2A schedule
as if the Draft had originally been issued by the Nergee branch itself.
B. DEMAND DRAFTS PAYABLE
1. RECORDS OF DRAFTS PAYABLE :
1.1 Effective from 1st Oct. 1997 the advice of draft issued has been de-linked from the
accounting process. As such, no entries on receipt of draft advice with effect from
1.10.1997 or later in respect of drafts drawn by our own branches need be passed
by the drawee branch. The advice will only serve as an intimation of the draft issued.
However, the fact that the advice of the draft issued for Rs. 10,000f- and above will
no longer be a medium of accounting process does not in any way, reduce its
importance. Branch should take the same care in respect of advices of draft issued
by other branches. Advices have to be prepared and despatched by the issuing
branches. The drawee branches should look for the relative advices and compare them
carefully when draft is presented for payment. Ex-advices payment be made only when
the particular advice has not been received. Subsequent receIpt of advIces shouId
be carrIed out promptIy and carefuIIy as soon as they are receIved. The
advIces shouId not be Iooked upon as InconsequentIaI once payment of the
reIatIve draft Is made ex-advIce on the ground that the advIces no Ionger
form part of the accountIng procedureJprocess.
CHAPTER-I
28
2. PAYMENT OF DRAFTS
2.1 When a demand draft is received for payment, it should be carefully examined to see
that it is in order in all respects. The following points should be particularly examined :
a) It should be seen that draft is genuine and that it is written on the bank's
standard format of approprIate serIes of dIstInctIve coIour.
b) It does not carry any material alterations and if there are any alterations, they
have been properly authenticated.
c) No notice has been received about the reported loss of the concerned DD.
d) Endorsement wherever appearing are in order.
e) It has been signed by two authorised officials (Except drafts below Rs. 1,J-
which may be signed by one authorIsed sIgnatory only) whose specimen
signatures appear in Specimen Signature Book or are otherwise supplied by Head
OfficefBranch.
2.2 The signature(s) on draft should be verified.
2.3 In case the draft is to be paid in cash over counter It shouId be ensured that the
draft Is not crossed. In such cases, proper identification of payee to the satisfaction
of bank is absolutely necessary. He may be identified by an account holder of the
bank whose account is introduced and who maintains a substantial amount at the
branch.
FoIIowIng procedure shouId be adopted
1. Payment of Demand Drafts for Rs. S0,000f- and above should be routed through
the account maintained by the beneficiary with any Bank and not in cash.
2. As per Reserve Bank of India guidelines, it has been decided as a special case
that the branches may encash demand drafts above Rs. S0,000f- purchased by
NinistriesfDepartments of Government of India in favour of their own outstation
unitsffield officers where no drawing and disbursing officer is posted, for making
genuine cash disbursement. It Is reIterated that these InstructIons are not
appIIcabIe to any payee of DDs other than Government Departments.
3. The clerk will record the details of the draft in the Register-cum-Schedule of
drafts paid and cancelled (DDR-2) in duplicate as in the case of DDR-1 with a
carbon interface. Care should be taken to enter all details legibly and correctly,
especially with regard to the draft serial number, issuing branch code and name,
issuing date and amount.
+. A supervisory staff should check the DDR-2 and ensure that the details are
recorded correctly and legibly and sign in the appropriate space in the DDR-2
before releasing the draft for payment.
S. Special care should be exercised in paying a draft where the amount is
Rs. 10,000f- and above as drafts generally would be presented for payment before
CHAPTER-I
29
receipt of any Advice (B-12) from issuing branch. Supervisors should particularly
verify punching in the digit-cage before payment.
6. The original page(s) of the DDR-2 (Tear off sheet) should be mailed as enclosure
to the summary statement of Draft Account (DDR-+). The carbon copy of DDR-
2 will form the branch record. Each day's entries in the DDR-2 will begin on a
new page, even if, space is available in the previous day's page.
7. At close of day's business, the amount columns cashfclearingftransfer of the DDR-
2 will be totalled and the figures taken to Cash Book on the debit side of Draft
Account.
Note :
i) Branches can accept passportJpostaI IdentIfIcatIon card {PIC) as
adequate IdentIfIcatIon for the purpose of makIng payment of
drafts, as Is beIng done for deposIt accounts, so that no
InconvenIence Is caused to the pubIIc.
ii) The IdentIfIcatIon by way of passportJPIC can be accepted If the
photograph and sIgnature of the payee taIIy wIth those of the
presentIng person and hIs sIgnatures.
iii) A note shouId be made on the reverse of the draft of havIng
IdentIfIed the payee from hIs passportJPIC statIng under the
sIgnature of an authorIsed offIcIaI, the passportJPIC no., date of
Issue and the IssuIng authorIty. IF POSSIBLE A PHOTOCOPY OF THE
PASSPORTJPIC MAY BE OBTAINED AND KEPT ON RECORD.
iv) OnIy vaIId and genuIne passportJPIC shouId be accepted for the
purpose of IdentIfIcatIon.
v) A ceIIIng of Rs. 25,J- for payment of drafts agaInst such
passportJPIC has been fIxed In order to mInImIse rIsk of any
frauduIent transactIon In thIs regard.
Occasionally, branches might be faced with the problem of identifying
students who may produce college identity cards, library cards etc. for this
purpose. The Nanager may use his discretion in such cases and if he is
satisfied about the identity of presenting person, the draft maybe paid if it
is for small amount say upto Rs. S00; otherwise proper identification should
be called for.
At times, clients may feel annoyed when they are required to produce
identification to the satisfaction of the bank. They should be tackled in a
polite manner. It may be pointed out to them that observance of such a
formality is more for the protection of their own interests as for example,
by adopting such a procedure, if they happen to lose or misplace the draft,
no one who comes across it or finds it could get payment without being
property identified.
CHAPTER-I
30
2.+ Draft should be marked off by putting the date against its entry in the Register of
Demand Drafts payable which should be checked by the passing offIcIaIJ{s) as per
the powers vested In hImJthem. It should be verified that particulars given in the
Register of Demand Drafts Payable tally exactly with the particulars of the draft
presented for payment.
2.S The date of payment should also be marked in the relative advice which should be
taken out from the file of outstanding drafts and filed away separately.
2.6 The following entries should be passed :
DEBIT - Draft Afc.
CREDIT - CashfClearingfParty's Afc.
the draft itself will serve the purpose of debit voucher.
2.7 To avoId doubIe payment of the same DD the draft shouId be canceIIed by
drawIng an obIIque IIne across It and puttIng the remark ''PAID'' on It
aIongwIth the date of payment and sIgnature of the passIng offIcIaI.
2.8 Procedure for payment of Demand Drafts drawn on servIce branch by any
branch under the same cIearIng zone :
At present the branches in the clearing-zone collect Demand Drafts drawn on Service
Branch and deposit in the account of their customer through clearing and this delays
availability of funds to the customer. As a part of further improvement of customer
service in our Bank it has been found desirable that our branches functioning in the
clearing zone of the Serivce Branch should effect direct credit of such Demand Drafts
to the account of the customer and subsequently obtain reimbursement from the Service
Branch.
Procedure : Such payment will be made as per the following procedure :
i) Before adoption of the above payment system, the Service Branch will send to
all branches under its Clearing Zone, the issuing-branch-wise list of all live DDs
for which payment has been countermanded due to loss of the instrument, stolen
instrument, fraud & forgery, duplicate issued etc.
ii) Fresh intimations received by the Service Branch in respect of DDs for which
payment has been countermanded due to above reasons will be sent by the
Service Branch to all the branches in the Clearing Zone on day to day basIs
thereafter. No clearance should be given by Service Branch for issuance of
duplicate DD before having ascertained from all the branches in the Clearing Zone,
non-payment of the original. The branches in the Clearing Zone will scrupulously
maintain the above list with daily updation. A separate Register with similar format
as DD Payable Register should be used to record countermanded DDs for each
issuing branch in respective folio opened for that issuing-branch.
iii) Demand Draft drawn on Service Branches should be paid only by crediting
customer's account maintained at the Branch. Such account must be more than
six months old and satisfactorily run.
CHAPTER-I
31
iv) On receipt of the Demand Draft from the customer, the branch will first check
that the instrument is not included in the list of countermanded Demand Drafts.
v) The branch will then carry out the scrutiny of the instrument including verification
of signatures thereon as per existing rules and procedures, save and except the
serial number of the Demand Draft which would not be verifiable at their end.
vi) Thereafter the branch will prepare Debit voucher giving particulars of the DD
and pass the following transfer entrIes.
Dr. Service Branch Afc.
Cr. Payee's Afc.
vii) On the back of each DD paid in this manner, the branch will put a rubber stamp
as follows :
DD PAID
PaId by ............................................................ Branch on behaIf of
ServIce Branch on .................................................. {date).
viii) The branch will separately forward such DDs to the Service Branch under cover
of ``Service Branch DD paid Schedule'' (as per annexure) in the next clearing
after duly noting the DDs in a separate register in the same manner as done
for clearing instruments sent to Service Branch. The schedules should be serially
numbered and the sequence strictly maintained. A copy of the Schedule should
be sent by the branch along with the original. The service Branch, after tallying
the schedule with the DDs enclosed and checking that each DD bears the DD
PAID stamp on the back, will acknowledge receipt on the copy of the schedule
with full signature and PF No. of the concerned officer. This acknowledged copy
will be brought back to the branch and all the debit vouchers pertaining to such
DD payments should be affixed to it by the branch after tallying the particulars.
ix) The service Branch, on receipt of the schedule and the DDs will immediately
check that none of the instruments reported in the schedule is countermanded.
Thereafter, they will check up the Serial Number of the DD and also carry out
the scrutiny of the instrument IncIudIng verIfIcatIon of sIgnatures thereon
as per existing rules and procedures. Any discrepancy noticed should be
immediately informed to the paying branch.
x) Then the Service Branch will pass the following transfer entries :
Dr. Draft Account
Cr. Respective Branch Afc.
CHAPTER-I
32
The Credit Advice will be sent through the clearing channel on the same day,
or at the latest in first clearing on the next day. The schedules received from
the paying branches will be affixed to the DDR-2 copy of the Service Branch for
record.
xi) On receipt of the Credit Advice, the paying branch will scrutinise and preserve
the same with the respective voucher.
xii) The above system opens up a regular transfer channel side by side with the
existing clearing channel between the Service Branch and the branches within
the clearing zone. This should be duly kept in view while carrying out reconciliation
and balance-transfer. Both paying branch and the Service Branch will carry out
reconciliation of DD Paid entries every Friday.
2.9 Procedure to be foIIowed by extensIon counters for payment of drafts.
1) Drafts will be issued only on parent branch but can be paid by an extension
counter.
2) Extension Counters will pay the draft to the debit of their parent branch account
and forward the draft to the parent branch along with the debit advice. Parent
branch will respond to this by debiting drafts account and crediting the extension
counter account.
3) The parent branch will include the draft paid by the extension counter in DDR-2
individually and total will be debited to the draft account at the end of the day.
+) DDR-2 should not be prepared by the extension counter.
S) Extension Counter shall forward their DDR-1 and paid draft to the parent branch
on the day of the transactions, it self.
6) The parent branch on receipt of above shall include the figure on the same day
in their DDR-1 and DDR-2 and forward the DDR-1 and DDR-2 along with DDR-
+ to DDR wing of the Regional Offices.
7) Any deviation in observing the procedure will result in difficulties in reconciliation
of entries at Head Office.
3. DEMAND DRAFTS OVER SIX MONTHS OLD CONSIDERED STALE
3.1 Drafts, like cheques, become stale after six months of their issue. Branches should
not pay drafts issued by another branch of the bank after six months from the date
of issue without revalidation by the issuing branch. Revalidation can be done only once.
If the same remains outstanding for more than six months after the first and only
revalidation, it should be surrendered for cancellation and a separate draft or pay order
should be issued, if required.
3.2 Caution should be exercised while paying drafts presented long after the date of issue and
care must be taken to ensure that payment is made in due course to the right party.
CHAPTER-I
33
3.3 When a draft is out of datefstale and request for revalidation is received, the issuing
branch should verify signature of applicantfpurchaser with the letter requesting for
revalidation. After being satisfied, original draft may be revalidated by issuing branch
with intimation to the payee branch and H.O. DDR Cell.
3.+ Payment of Demand Draft exceeding Rs. 1 lakh unpaidfoutstanding more than S years
should be permitted only with the authorization of 2 officials one of whom should be
from controlling office.
3.S Paying branch while paying a revalidated draft should write the orIgInaI date of Issue
of the draft instead of writing the date of revalidation.
+. BALANCING
+.1 Issuing branch has to enter all the DD issued in DDR-1 and all DD paid in DDR-2.
Cancelled DDs are to be entered in DDR-2Af2 as explained earlier.
+.2 Summary of DDs issued and paid is to be prepared in DDR-+, which the branch sends
to Regional Office daily along with DDR-1 and DDR-2 and DDR-2A if any after tallying
closing balance of DDR-+ with the Draft account in general ledger. Branches are to
ensure that DDR-4 Is to be sent to RegIonaI OffIce onIy after taIIyIng the
baIance wIth draft account In G.L. on daIIy basIs.
+.3 Accurate preparation of DDR schedules and correct data entry are of critical importance
for the successful reconciliation of Draft Afc. HO Circular No. CHOfSUAf38f2002-03 dated
31.08.2002 covers the sub]ect in great detail, mentioning In!I aIIa on pages 2, 3, + :
''The totaI amount credIted to Draft aJc. In the GeneraI Ledger on any gIven date
shouId equaI the totaI of DDR-1 & 1A of that date. SImIIarIy, the totaI amount
debIted to Draft aJc. In the GeneraI Ledger on any gIven date shouId equaI the
totaI of DDR-2 & 2A of that date. In other words, there shouId be a perfect match
between DDR scheduIes and the Draft aJc. No entry shouId appear In DDR
scheduIes, whIch Is not supported by vouchers and no entry shouId be mIssed
In the DDR scheduIes for whIch a voucher has actuaIIy been passed.''
In DDR-+, the opening balance NUST tally with the closing balance of previous DDR-+, and
the new closing balance NUST tally with the Geneal Ledger of that day.
The revised DDR-+ would also carry a more comprehensive certificate reading as -
Ce1I111ed InaI OOR-J, JA 2, 2A and 4 naVe Deen In1ougnIy cnecRed; Ine1e a1e
no e11o1s; no enI11es 1eIaI1ng Io OOs 1ssued p11o1 Io DJ.JD.JBB7, OOs 1ssued Dy
oVe1seas D1ancnes o1 oIne1 OOmmY enI11es a1e appea11ng Ine1e1n; Open1ng
BaIance IaII1es w1In Ine CIos1ng BaIance o1 p1eV1ous OOR-4 and Ine CIos1ng
BaIance IaII1es w1In Ine O1a1I a/c. DaIance 1n GIB.
Aun!aDIII!) wuI D /Ix n !n sIgnIng //IIaIs, I/ !n I!I/Ia! Is Ia!I /un ! D
un!Iu.
CHAPTER-I
3+
A! !n !Im / AnnuaI CIsIng / Aun!s, !n DIa/! a,. DaIan snuI D !aIII wI!n
!n GnIaI LgI an DIugn! ! N1L D) passIng suI!aDI vunIs ! !n DI!,II! /
HO aun!, wI!n IIspnIng n!IIs In DDP-J,2 snuIs. Tn sIIaI n. /I sun n!IIs
snuI D` J, PIIn! n. sam as !n 1D N. / DIann an CONTPA DIann as HAD
(J997}.
POs snuI n! aI!I !n a!a / an) DIann, wI!nu! sKIng IaII/Ia!In I g!!Ing !n
nang //! a! !n DIann I!sI/. 1ns!ans nav m ! n!I wnI POs nav nang
a! / PI-J.J.J997 DDs ! aIDI!IaI) ps!-J.J.J997 a!s, nams / vIsas DIanns
! aIDI!IaI) ms!I DIanns, n!I 5IIaI N., PIIn! N., BIann ALPHA I 1D N.,
Da! / 1ssu !. !nIugn gusswIK wnI !n sam wI n! IgIDI, nang !n DaIan
I pu! !nIugn sm DUMMY n!IIs ! !I vI !n aII!nm!IaI mIs!aKs In !n DDP
5nuIs suDmI!! D) DIanns.
In addition to signing the above certificate on a daily basis, the branches are also submitting
IT-+ on a monthly basis to their Regional Offices certifying that their Draft afc. balance is
fully tallied with their GLB.
However, it has been observed that for a number of branches, the Draft afc. balance
transferred through DDR schedules on 31st Narch differs from the figure reported in their
Head Office Daily Statement (HODS) or earlier DHO Tear Off Sheets. This is a very serious
lapse on the part of branches as not only they are giving false balancing certificate to
their higher authorities but also transferring unbaIanced Draft afc. to Head Office without
any authority for doing so.
Head Office is concerned only with the reconciliation of entries in the Draft afc. (DDR system)
and HO afc. (IBR system), but with the transfer of unbalanced Draft afc. to HO, the
responsibility of balancing is also passed on to Head Office. Until balanced, the two different
amounts reported in Draft afc. and HO (earlier DHO) afc. remain outstanding in the
Reconciliations, inviting severe criticism from RBI.
To avoid such occurrences in future, the Branches and Controlling Offices should take the
following steps with immediate effect :
1) Branches should confirm to their Regional Offices that the balance in their DDR-+
schedule and HODS tallies with their GLB as on last working day of the month. If
there are differences at any branch, the same should be rectified before submission
of such certificate.
2) Branches and ROs should carefully go through the Circular NO. CHOfSUAf38f2002-03
dated 31.08.2002 and note carefully the instructions contained therein for compliance.
3) While signing the monthly statement IT-+B, branches should add ``Draft afc.'' and ``HO
afc.'' by hand to the list of Accounts such as ``Cash'', ``Clearing House afc.'' etc. required
to be certified as being balanced daily.
+) Notwithstanding the daily certificate given in DDR-+fHODS and the monthly certificate
in IT-+B as specified above, the ROs should check on a fortnightly basis that the
CHAPTER-I
3S
balance for each branch in the DDRfIBR package tallies with that appearing in the
ACT-1 package. Discrepancy, if any, should promptly be taken up with the branch
concerned to get the Afc. balanced immediately.
S) On a quarterly basis, the ROs should certify to HO, Finance Dept. (DDRfIBR Cell)
that they have checked the DraftfHO afc. balances for all the branches as appearing
in the DDRfIBR package with the respective balances appearing in ACT-1 andfor BS-
1 statements and that there are no differences.
Submission of false balancing certificate henceforth will entail disciplinary action against
the signatories, which should be carefully noted.
S. ProbIems In DD ReconcIIIatIon and theIr SoIutIon - RoIe of Branches, ROs,
HO{FInance)
Computerized Demand Draft Reconciliation system was introduced in the Bank with
effect from 01.10.1997. A number of problems along with their solutions are given
below. All branches and Controlling Offices are instructed to note them carefully for
compliance.
S.1 PREPARATION OF DDR SCHEDULES
DDR Schedules should be written legibly.
All the particulars such as CONTRA branch ALPHA code and ID No., Serial
and Printed Numbers of DDs, DD Amount and Date of Issue should be
correct.
Each and every DD, even if there are a number of DDs for same amount
on same date between the same two branches, is to be written with
complete details on a separate line, Shortcuts like `-do-' or ``,,'' to indicate
repetition of something written on the line above are not acceptable.
In case of revalidated DDs, the date of issue should be the original date
and not the date of revalidation.
DDs issued prior to 1.10.97 (even if revalidated afterwards) and DDs drawn
by overseas branches should not be paid through DDR system.
DDR-2A is basically a Schedule to report Ad]ustment Debit entries. It should
be used for :
FULL reversal of DD Issued earlier (such as its cancellation for refund
or for issue of duplicate),
PART reversal of a DD Issued earlier, reported wrongly for higher amount
due to inclusion of commission etc. (to bring it down to correct amount).
For increasing the amount of a DD Paid earlier, wrongly reported for a lesser
amount due to some reason, the Ad]ustment Entry should be given in DDR-2
only and not in DDR-2A.
CHAPTER-I
36
Reporting of Ad]ustment Credit entries for :
FULL reversal of a DD wrongly paid through Draft Afc.,
PART reversal of DD Paid erlier, wrongly reported for higher amount
due to some reason,
Increasing the amount of a DD Issued earlier, wrongly reported for a
lesser amount due to some reason,
should be made in Schedule DDR-1A. If at some branch, DDR-1A is not available,
it may use DDR-1 but note to mention the Date of Issue of original DD as a
`Remark'.
Particulars of all the entries reported in DDR-1A or DDR-2A NUST be the
same as those of the original DDs whose amount they intend to ad]ust,
except for amount in the case of part reversals and enhancements.
The Schedule totals (DDR-1, 1A, 2 & 2A) should be correct and should be
correctly carried over to DDR-+.
The total amount credited to Draft Afc. in the General Ledger on any given
date should equal the total of DDR-1 & 1A of that date. Similarly, the total
amount debited to Draft Afc. in the General Ledger on any given date
should be equal to the total of DDR-2 & 2A of that date. In other words,
there should be a perfect match between DDR Schedules and the Draft Af
c. No entry should appear in DDR Schedules, which is not supported by
vouchers and no entry should be missed in the DDR Schedules for which
a voucher has actually been passed.
In DDR-+, the opening balance NUST tally with the closing balance of
previous DDR-+, and the new closing balance NUST tally with the General
Ledger of that day.
DDR-+ carries a comprehensive certificate reading as
``Certified that DDR-1, 1A, 2, 2A and + have been throughly checked; there
are no errors; no entries relating to DDs issued prior to 01.10.1997, DDs
issued by overseas branches or other DUNNY entries are appearing therein;
Opening Balance tallies with the Closing Balance of previous DDR-+ and
the Closing Balance tallies with the Draft Afc. balance in GLB''.
Accountability would be fixed on the signing officials, if the certificate is
later found to be untrue.
At the time of Annual Closing of Accounts, the Draft Afc. balance should
be tallied with the General Ledger and brought to NIL by passing suitable
vouchers to the debitfcredit of HO account, with corresponding entries in
DDR-1f2 Schedules. The Serial No. for such entries should be `1', Printed
No. same as the ID No. of branch and CONTRA branch as HEAD (1997).
CHAPTER-I
37
Same instructions will apply at the time of closurefmerger of a branch,
where the closedfmerged branch should tally Draft Afc balance with GLB
& then make their Draft Afc. balance NIL by transferring the same to HO,
instead of merging it with the mergee branch Draft Afc. balance.
S.2 DATA ENTRY AT ROsJFLOPPY INPUT BRANCHES {FIBs)
There should be Pre and Post-Data Entry checking of DDR Schedules. Pre-
Data entry checking of Schedules should ensure that -
DDR Schedules are being received regularly from all the branches.
There is no difference in the Closing BalancefOpening Balance between
two consecutive Schedules from the same branch,
There are no arithmetical mistakes in the totals of DDR-1, 1A, 2 & 2A
Schedules or in the carrying over of these totals to DDR-+,
The Schedules appear to be otherwise in order in all respects,
particularly on the points under para `S.1 PREPARATION OF DDR
SCHEDULES' mentioned above.
Discrepancies noticed, if any, should immediately be got corrected from the
branches or confirmation be sought that these have been rectified subsequently,
before passing on the Schedules for data entry.
DDR-1 and DDR-2 Schedules should be entered under Record Code `61',
while DDR-1A and DDR-2A should be entered under Record Code `62'.
Post-Data entry checking of Schedules would involve :
Taking out an Edit List (Checklist option of Data Entry package) and
manually checking it with the Schedules to ensure that there are no
data entry errors,
Ensuring that no DDs Issued prior to 01.10.1997 or DDs Issued by
overseas branches have been put through the Draft Afc. by Branches,
Removing all errors thrown up by the package at the time of data entry
or in the Checklist.
ROs SHOULD NOT alter the data of any branch, without seeking clarification
or getting the change effected at the branch itself. Instances have come
to notice where ROs have changed the dates of pre 01.10.1997 DDs to
arbitrary post 01.10.1997 dates, names of overseas branches to arbitrary
domestic branches, entered Serial No., Printed No., branch ALPHA or ID
NO., Date of Issue etc. through guesswork where the same were not
legible, changed the balance or put through some DUNNY entries to tide
over the arithmetical mistakes in the DDR Schedules submitted by branches.
All the steps up to this stage would be taken by FIBs also, who would
CHAPTER-I
38
submit their data in floppy to respective ROs with a certificate similar to
one being submitted by other branches on DDR-+ with the addition that
''aII the errors found durIng data entry or In the CheckIIst have
been removed.'' ROs have to take special care of FIBs as such branches
have large volume of data and are prone to fall into arrears.
ROs would append the data received from FIBs to the data entered by
them and run a final `Èrror list only' option on the combined data and
remove any error still appearing therein.
The data for the Region as a whole on a fortnightly basis should be
submitted by E-Nail to HO (Accts.) within 1S days of the close of the
fortnight. It should carry a certificate that ``The data is error-free, for full
fortnight and for all the branches. It does not include any DUNNY entries,
pre-01.10.1997 DDs or DDs issued by overseas branches.'' Exceptions, if
any, should be clearly mentioned in the Nail itself with reasons therefor.
A copy of the Nail should be sent to respective RO dIrectIy.
5.3 ERROR RECTIFICATION
If the above steps are followed strictly, there should not be any error in
the data received at HO. However, before taking the data for reconciliation,
one final Error list would be run at HO and errors detected, if any, would
be communicated to ROs through E-Nail.
Copy of the E-Nail would also go to respective RO's to enable the latter
to monItor the compIIance of InstructIons gIven to ROs under para
5.2 DATA ENTRY AT ROs...'.
Errors communicated by HO should be promptly rectified by ROs and
rectified data returned to HO through E-Nail.
ROs should clearly note that once the data (even though wrong) up to
any particular date has been accepted by HO, rectifications for mistakes, if
any, detected later can be put through only as Ad]ustment entries in DDR-
1A, 2A on a subsequent date. If RO resubmits the data after carrying out
rectifictions in the original date, it will have no effect as all the data up to
and including the accepted date, is considered to be an erroneous re-
submission of data by the system and dropped therefore.
5.4 RECONCILIATION AND REMOVAL OF UNMATHCED ENTRIES
Following general mistakes are observed during reconciliation.
Pre-01.10.1997 DDs or DDs issued by overseas branch passed through Draft
Afc.
Double Payments due to laxity in issue of Non-Payment advices by the
Drawee branches,
CHAPTER-I
39
Payment of DDs issued on stolen leaves or of DDs with amounts altered
fradulently,
Excess Payments due to inclusion of commission in the amount of DD,
Particularly for the DDs issued in realization of bills,
DUNNY entries, arbitrary Issue Dates, CONTRA branches or Serial Nos.f
Printed Nos. etc., introduced by ROs at the time of data entry.
Aggregate amount of a number of entries put through as a single
{CLUBBED) entry,
Entering some data twice, leaving out certain entries or entire data of certain
dates {MISSING SCHEDULES) particularly around the date of annual
closing and changing the balance arbitrarily by ROs.
Quarterly lists of Unmatched Debit entries would be provided to ROs from time
to time, with summaries thereof for monitoring purposes.
The remedIaI actIon wouId depend on the nature of error :
For entries with some discrepancy in the particulars as furnished by HO,
Paying branch would provide a photocopy of the paid DD to the concerned
RO for rectification of records at HO.
For entries having no discrepancy in any of the particulars as furnished by
HO, Paying branch should provide a photocopy of the paid DD to the
concerned RO for taking up the matter with the Issuing branch RO to enable
the latter to ascertain the correct position from Issuing Branch. It may turn
out to be a fradulent Payment.
In case of Fradulent, Double and Excess Payments, matter should be
investigated, staff accountability fixed and amount (along with interest)
recovered from Purchaser, Payee or the Staff concerned through persuation
or through enforcement of Indemnity Bond. On recovery, principal amount
would be credited to Draft Afc. (By whichever branch recovering it) and
interest portion or the amount of excess payment credited to 'Other
ReceIpts AJc.' under advice to RO.
In case of Frauds, other steps like lodgment of FIRs and reporting to
vigilance Deptt. and Finance Deptt. (for lodgment of insurance claim) would
also have to be initiated.
If the recovery of Double Payment is not forthcoming within one month of
its detection, the RO having ]urisdiction over the branch, found prima facie
responsible for the same, would instruct the branch to debit their Sundry
Debtors Afc. and credit the same to Draft Afc. with a corresponding entry
in DDR-1A. Sundry Debtors entry, in due course, would be ad]usted through
recovery from the Purchaser, Payee or concerned Staff as stated earlier.
For pre-01.10.1997 DDs of domestic branches and pre-01.03.2001 DDs of
CHAPTER-I
+0
overseas branches wrongly PAID through Draft Afc., the credit amount must
be lying in the DD Payable Afc. It should be reversed from there and
credited to Draft Afc. with a corresponding entry in DDR-1A. If the amount
has since been transferred to HO, particulars thereof should be
communicated to RO.
For pre-01.10.1997 DDs wrongly CANCELLED through Draft Afc., the credit
amount must be lying in the DD Payable Afc. of Drawee branch. The
LATTER should reverse it and credit the same to Draft Afc. with a
corresponding entry in their DDR-1A. In no case, it should remit the amount
back to Issuing branch through IBCN or by any other means.
In both the above cases, details of branch ChequesfIBCN covering the DDs
under question, may have to be ascertained from the issuing branches for
locating the credit amount.
For post-01.03.2001 DDs of overseas branches wrongly PAID through Draft
Afc., the entries should be reversed to the debit of IBCN Paid Afc.
For CLUBBED entries and NISSING SCHEDULES, the concerned branch should
provide copies of the original Schedules containing correct details to its RO.
For DUNNY entries and entries erroneously made twice, HO would provide
a computer generated DDR Schedule of that date to enable the concerned
branch to compare it with their actual Schedule and ascertain the reasons
for such entries for taking rectification steps in consultation with their ROs.
It may be emphasised that it is the sole responsibility of ROs to get the
entires removed by taking up the matter with the branches.
HO (Finance Dept's) role would be limited to do the actual reconciliation,
communicate unmatched entries to ROs and thereafter sort out ticklish
accounting or other issues.
S.S SAFEGUARDS TO BE EXERCISED BY BRANCHES
It has no where been written in any of the circulars issued on the sub]ect
of DDR, that DD Issued and DD Payable Registers have been dispensed
with. But it appears that some branches, particularly the FIBs have
interpreted it that they need not maintain such Registers. It may be
emphasized that DDR package is only a data entry package for the purpose
of reconciliation, it is not a full-fledged RENITTANCES package that would
maintain all the records by itself. Such records have to be maintained either
manually or by the ALPNfPBNfTBN package if that has a functioning
RENITTANCES module.
CHAPTER-I
+1
There should be a proper control over issue of Non-Payment advices, which
is possible only if the DD Issued and DD Payable Registers as mentioned
above are maintained correctly.
Particular care should be taken while issuing the DDs in realization of Bills,
as often the total bill amount in such vouchers is wirtten on the top,
followed by `less Commission' and finally the net amount for which DD is
to be issued. This is in contrast with the regular DD Issued vouchers where
DD amount is written on the top, followed by commission and finally the
total amount. Oversight in preparation and signing of such DDs often results
in issue of DDs inclusive of commission amount.
Other mistakes such as difference in the amount written in words and
figures, inconsistency in the amount with that indicated by hole punched
for security purposes or the one encoded for NICR clearing have also come
to notice, for which both the issuing and paying branches should exercise
caution, failing which the staff concerned would be held accountable, if any
loss is suffered by the Bank.
S.6 ESTABLISHMENT OF RECONCILIATION MONITORING CELLS AT ROs
Since ROs have a pivotal role to play in the reconciliation process, starting from
data entry till final removal of unmatched entries, and report to higher authorities,
they should establish a Reconciliation Nonitoring Cell at their offices with clearly
assigned duties and responsibilities as outlined herein above.
6. TRANSFER OF BALANCE OF DRAFT ACCOUNT TO HEAD OFFICE
6.1 As on last working day of the financial year that is on 31st Narch every year
or at such time Head OfficefRegional Office may advise, branches should transfer
the balances in Draft account to DDR Cell by creditingfdebiting, as the case may
be, and pass entries through Head Office Account.
a) Where branch has a credit balance in draft account
Debit - Draft account
Credit - Head Office Afc.
b) Where branch has a debit balance in draft account
Debit - Head Office Afc.
Credit - Draft Account.
Two vouchers should be prepared as the case may be and entered in transfer
scroll and posted in cash book in usual manner. A G-+ advice would be issued
and sent to the officer in charge of DDR Cell, Accounts Department, Head Office
on the same day.
Balance of Draft Account so transferred to Head Office Afc. should be reported
CHAPTER-I
+2
by including amount in tear off sheet of DDR-1 or DDR-2
6.2 For credit balance transferred, the amount would be included in DD Paid Schedule
(DDR-2) and columns of DDR-2 are to be filled in the following manner.
DD Sl. No. DD Printed No. Drawer Branch Drawer Branch
Alpha Code Identification No.
1. Identification No. HEAD 1997
of the branch
6.3 For debit balance transferred, the amount would be included in DD Issued
Schedule (DDR-1) and all other columns should be filled in the following manner.
DD Sl No. DD Printed No. Drawee Branch Drawee Branch
Alpha Code Identification No.
1. Identification No. HEAD 1997
of the branch
6.+ Total of DD issuedfpaid schedule (Tear off Sheets) including balance transferred
to Head Office Account, should be shown in summary of Draft Account
(DDR-+), which should show a `NIL' closing balance.
CHAPTER-I
+3
ANNEXUREI
DRAFT OF INDEMNITY LETTER
IN RESPECT OF ISSUE OF A DUPLICATE DRAFT
IN LIEU OF LOST ONE
The Nanager,
UCO Bank, ....................20.......
......................................
Dear Sir,
In consideration of UCO Bank issuing a duplicate of their Demand Draft on ................................
No....................... dated........................favouring............................ for Rs............................. We,
the undersigned .................................... and ........................................ hereby ]ointly and severally
guarantee and agree to hold the said UCO Bank, their successors and assigns, harmless and
indemnified from and against all consequences that may arise from their so doing and from payment
of the original Demand Draft and from and against all losses, charges and expenses in connection
with the said Demand Draft or duplicate.
Yours faithfully,
Witness : (Signature)
1. Signature ................................................. Name ............................................
Name ................................................. Address ............................................
Occupation ................................................. ...........................................................
Full Address ................................................. ...........................................................
2. Signature ................................................. ...........................................................
Name .................................................
Occupation .................................................
Full Address .................................................
CHAPTER-I
++
ANNEXUREII
DRAFT OF LETTER TO BE TAKEN FROM PAYEE IN
RESPECT OF ISSUE OF A DUPLICATE DRAFT IN LIEU OF LOST ONE
The Nanager,
UCO Bank, .......................20..........
....................................
Dear Sir,
IfWe amfare informed by ..................... of ....................that on ...................... he purchased
from you a Demand Draft bearing number........................for Rs. .................. (Rs.
...........................................................) drawn on your ......................................... branch favouring
myselffourselves and he duly posted the same to mefus. IfWe hereby declare that the said Demand
Draft has not been received by mefus and has not been transferred or endorsed or dealt with
by mefus in any manner. Presumably, it has been lost in transit. The purchaser of the
draft.................................. IfWe understand, has applied to you for the issue of a duplicate in
lieu of the Draft abovementioned. IfWe hereby declare that IfWe have no ob]ection whatsoever
to your issuing such a duplicate draft to him relying on myfour declaration that the original Draft
has not been received by mefus.
IJWe hereby aIso undertake that In the event of myJour receIvIng the Demand
Draft at a Iater date, IJWe wouId surrender It to the Bank for canceIIatIon.
Yours faithfully,
NOTE : PIease strIke out whIchever Is not appIIcabIe
CHAPTER-I
+S
ANNEXUREIII
DRAFT OF INDEMNITY LETTER
IN RESPECT OF REFUND OF AMOUNT OF LOST DRAFT
The Nanager,
UCO Bank, .........................19........
.........................
Dear Sir,
In consideration of UCO Bank refunding the amount of their Demand Draft on ..................
No.................. dated ................. favouring .............................. for Rs.......................which has
been lost or misplaced we, the undersigned ...................................... and ...............................
and ................................. hereby ]ointly and severally guarantee and agree to hold the said UCO
Bank, their successors and assigns, harmless and indemnified from and against all consequences
that may arise from their so doing and from payment of the original Demand Draft and from and
against all losses, charges and expenses in connection with the said Demand Draft.
Yours faithfully,
Witness :
1. Signature .........................................................
Name .........................................................
Occupation .........................................................
Full Address .........................................................
2. Signature .........................................................
Name
.........................................................
Occupation .........................................................
Full Address .........................................................
CHAPTER-I
+6
ANNEXURE-IV
DRAFT OF LETTER TO BE TAKEN FROM PAYEE
IN RESPECT OF REFUND OF AMOUNT OF LOST DRAFT
The Nanager,
UCO Bank, ......................20........
.................................
Dear Sir,
IfWe amfare in informed by ................................. of .................. that on ..........................
he purchased from you a Demand Draft bearing No................. for Rs..................
(Rs...........................................................) drawn on your .......... branch favouring myselffourselves
and he duly posted the same to mefus. IfWe hereby declare that the said Demand Draft has not
been received by mefus and has not been transferred or endorsed or dealt with by mefus in any
manner. Presumably, it has been lost in transit. The purchaser of the draft .............. IfWe understand,
has appl i ed to you for the refund of the amount of the Draft above menti oned.
IfWe hereby declare that IfWe have no ob]ection whatsoever to your refunding the amount of
above mentioned Draft to the purchaser relying on myfour declaration that the original Draft has
not been received by mefus.
IJWe hereby aIso undertake that In the event of myJour receIvIng the Demand
Draft at a Iater date, IJWe wouId surrender It to the bank for canceIIatIon.
Yours faithfully,
NOTE : PIease strIke out whIchever Is not appIIcabIe
CHAPTER-I
ANNEXURE-V
UCO BANK
............................ BRANCH
Register of Demand Drafts cancelled at the Branch at the request of purchasers thereof
Date on Number Amount Name of Name of the Branch Reason State If RequIsIte InItIaI
whIch of Demand the Payee Drawn for cance- Ietter has been obtaIned ManagerJ
Draft was Draft purchaser upon IIatIon from payee and aII Asstt.
CanceIIed endorsements got Manager
canceIIed wherever
necessary.
{gIve suItabIe remarks
agaInst partIcuIar
draft{s)
+7
CHAPTER-I
+8
ANNEXURE-VI
Draft of Ietter to be taken from
purchaser of demand draft for Its
canceIIatIon and refund of money
The Nanager, Date :
UCO Bank
............................... Branch.
Dear Sir,
Ifwe purchased on .............................. from your branch a demand draft bearing number
................ for Rs..................... (Rupees ...........................................................................) drawn
on your ........................................ branch favouring ..........................................................................
IfWe hereby request you to cancel the above draft and refund the amount of the draft to mef
us. I amfWe are enclosing the original draft for due cancellation and refund.
IfWe further state that the draft was at no stage delivered to the payee and I amfWe are
the holder thereof.
Yours faithfully
CHAPTER-II
+9
CHAPTER-II
MAIL TRANSFER
Nail Transfer is another type of bank remittance in which the amount is transferred from
one branch to another branch.
When the payee has an account with the drawee branch, sometimes the remitter prefers to
remit the amount by mail transfer rather than by demand draft. In case of mail transfer the
bank does not give any instrument like demand draft to the remitter.
Nail transfers are also issued for transfer of a deposit account from one branch to another.
They are also issued for remitting proceeds of bills, for credit of correspondent bank's account
with drawee branch, etc.
Care : Under no circumstances should a mail transfer be despatched to the payee branch in
isolation, and it should always be accompanied by IBCN.
{A) MAIL TRANSFER SOLD
1. ISSUE OF MAIL TRANSFER
1.1 An application should be obtained from the remitter on Form B-17 after substituting
the words `Nail Transfer' in place of `Demand Draft' wherever it appears in this form.
NOTE : Generally a mail transfer is sent if the payee has an account with the transferee
branch.
In case payee does not maintain an account with transferee branch, it should be seen
that remitter gives in the application full address of the payee. Efforts should be made
in such cases to persuade the payee to open an account with the transferee branch.
As far as possible mail transfer should be effected only when the applicant and the
payee maintain accounts at the transferring and transferee branches respectively.
1.2 The appIIcatIon form {B-17) shouId be scrutInIsed by the offIcIaI-In-charge
of the RemIttance Department for the foIIowIng :
1. The bank has a branch at the pIace on whIch MT Is requIred ;
2. FuII name of the payee has been IegIbIy wrItten ;
3. DetaIIs of the account of the payee wIth drawee branch e.g. SBJCDJ
Loan {AJc type and number) Is cIearIy mentIoned.
4. The commIssIon IncIudIng servIce tax & postage have been correctIy
computed and entered In the voucher.
5. The appIIcant has gIven hIs fuII name and address.
6. The appIIcant has sIgned the voucher and authentIcated aII cuttIngsJ
aIteratIons, If any.
CHAPTER-II
S0
1.3 Sometimes a customer sends a letter of authority requesting for remittance by mail
transfer to the debit of his account. In such a case it should be ensured that all the
particulars about mail transfer given in the N.T. Application form are also given in the
letter. In such cases the Nail Transfer Application form will have to be prepared by
the branch. It should be seen that it is prepared in accordance with the instructions
contained in the letter, and the application is authenticated by an authorIsed offIcIaI.
The signature of the customer in the letter requesting for remittance by mail transfer
should be verified and initialled by an authorIsed offIcIaI. A debit voucher should
be prepared for the amount of mail transfer, exchange and commission and service
tax and postage. When the account is debited, the letter should be cancelled with
an oblique line with notation È.P.' for èntry passed'. The cancellation should be dated
and initialled by the offIcIaI signing the debit voucher and the letter should be attached
to the relative debit voucher. Care must be taken to ensure that the mail transfer is
not effected unless the account of the applicant has been debited.
Sometimes a customer may send through messenger a cheque drawn payable to the
bank for remittance by mail transfer. In such cases, the cheque should be accompanied
by a covering letter with instructions regarding application of money represented by
cheque. The covering letter should also be signed by the person(s) authorised to
operate on the account. Without such authority, the cheque should not be utilised to
issue mail transfer as tendering of cheque in favour of the bank is no authority to
make a remittance on the instructions of a third party by debiting the drawer's account.
1.+ Nail Transfer Application Form should be sent to the Cash DepartmentfDeposit
Department as the case may be after entering in Cash ScrollfTransfer Scroll. Fund
for remittance application for Nail Transfer above Rs. S0,000f- should be tendered by
way of cheque and not in cash.
No action should be taken on the application unless it bears a Cash Received Stampf
Account Debited Stamp and is duly signed by the ChieffHead Cashierfany authorIsed
offIcIaI of Deposit Department.
1.S Each branch should maintain a Nail Transfer issued Register. As there is no standard
N.T. Issued Register, the Demand Drafts Sold Register (Form B-3S) may be used for
this purpose.
This Register should be maintained branch-wise having separate foIIos for each branch.
The name of the transferee branch should be mentioned at the top in the space
provided for. This will enable a branch to give separate serial number for each branch
on which mail transfers are drawn.
1.6 The Nail Transfer Application Form should be entered in Nail Transfer Issued Register
on the page allotted to that branch. The transferee branch serial number of mail
transfer should be noted.
Note : Branch should maintain a separate serial number for each branch on which
mail transfers are drawn and this number should be entered on the mail transfer advice
CHAPTER-II
S1
in addition to the number printed thereon. This would enable paying branch to keep
a track of the numbers of mail transfers drawn on them. Such numbers should be
started afresh (i.e. from Sl. No.1) on the first working day of April each year and
must be suffixed by the financial year (eg. 1f06-07)
1.7 Issue of MaII Transfer.
a) The mail transfer should be prepared on Form B-S3
b) Nail Transfer should be issued free of alterations; If any alteration is made in
the mail transfer, the alteration should be authenticated under the signature(s)
of the official(s) signing it.
c) Indelible ink should be used in writing of mail transfers. Branch having pin point
typewriters should see that all mail transfers issued by them are typed on such
typewriters.
d) Amount of mail transfer should be embossed on it by means of protectograph
machine. The protectograph machine should be used as indicated below :-if,
for example, the amount of the mail transfer is. Rs.1, 396fS0, the superscription
should read as ``Not Over Rs. 1,397.''
Note : All branches should possess protectograph machines. These machines
should be kept in working order and whenever a machine goes out of order at
a branch, immediate steps should be taken to have it repaired and if it cannot
be repaired, urgent efforts shouId be made to procure one eIther from
IocaIIy avaIIabIe sources or from Head OffIce.
ii) The markings on mail transfers by protectograph machine should be clear
and legible and faint impression should be avoided.
iii) Attempts should not be made to rectify mistakes in marking of mail transfers
by protectograph machine either by way of substituting the previous marking
by fresh impression or by over markings. In all such cases a fresh mail transfer
should be issued and the mail transfer containing incorrect markings should be
cancelled on reference to the ManagerJAsstt. Manager.
1.8 The printed serial number and the branch serial number as appearing on the mail
transfer should be noted on the application form at the blank space in the left hand
side of the application form.
1.9 The particulars on the counterfoil should also be carefully filled in.
1.10 The mail transfer should be signed by two authorised signatories. The signatories should
invariably append the P.F. numbers allotted to them while signing the mail transfer. Officers
those who don't have S.S. No. should not sign the N.T. otherwise it will create problem
at the time of verification of signatures at the drawee Branch. If there is no officer having
S.S. No. the G-+6 of the signing officer must be sent along with the remittance.
To facilitate the identification and verification of signatures, a rubber stamp bearing
the name of the authorIsed sIgnatory and hIs PF No. should be affixed below his
signature.
CHAPTER-II
S2
1.11 Before signing a mail transfer, the offIcIaI{s) should :-
a) compare the particulars of date of issue, the amount, the name of payee and branch
on which the mail transfer is drawn with the Nail Transfer Application Form ;
b) ensure that mail transfer either contains the full details of the account maintained
by payee with the drawee branch or the full address of the payee;
c) see that the mail transfer is branded with the name of issuing branch;
d) see that amount has been embossed by means of a protectograph machine;
e) satisfy himself that the branch has received the amount of the mail transfer from
the remitter. If the remitter pays in cash, (which should not exceed Rs. S0,000f-
per transaction) each official signing mail transfer must satisfy himself that cash
has been paid into the Cash Department and bears the signatures of the Chieff
Head Cashier; if the remitter has paid for the mail transfer by a cheque, it must
be ensured that mail transfer voucher indicates that, cheque has been realised
and bears the signature of cheque passing officials of Deposit Department across
Àccount Debited' stamps.
1.12 The official(s) signing the mail transfer should also initial the printed and serial number
noted on the application form at the blank space in the left hand side of the application
form. This is a necessary precaution to obviate the possibility of more than one mail
transfer being issued against one application form. The MT appIIcatIon form must
be canceIIed wIth an obIIque IIne and bear the sIgnatures of the authorIsed
sIgnatorIes sIgnIng the maII transfer. MaII Transfer Issued RegIster shouId
aIso be checked and InItIaIIed by authorIsed sIgnatorIes sIgnIng the maII
transfer.
1.13 If the remitter desires, a memo of charges may be supplied to him in Form B-19J
counterfoII to M.T. appIIcatIon form B-17.
1.1+ The following entries should be passed :-
DEBIT - CashfTransfer
CREDIT - N.T. Issued Afc
DEBIT - N.T. Issued Afc
CREDIT - Head Office Afc (IBCN to be prepared and signed by authorised
officials after checking)
CREDIT - Inland Exchange & Commission-including Service Tax
Sub-head-D.D.fN.T.
CREDIT - Working Expenses Afc postage
At the end of the day N.T. Issued Afc will show nil balance.
1.1S The mail transfer alongwith IBCN should be sent to transferee branch by Registered
CHAPTER-II
S3
Post. To facIIItate quIck despatch of MT, a separate IBCN book may be kept
for coverIng MT advIces.
2. SPOILT MAIL TRANSFER FORMS
2.1 When a mail transfer form is spoilt in preparation, the fact should be noted on the
relative counterfoil under the initials of signing official. The spoilt form should be
effectively cancelled by tearing off the space meant for the signatures of the signing
officials and the cancelled mail transfer form should thereafter be attached to the
counterfoil.
3. CUSTODY OF MAIL TRANSFER FORMS
3.1 Nail Transfer is a security form. Its receipt from Head Office and custody at the branch
and use in the department should be governed by the same precautions as are
prescribed for cheque books.
3.2 The Nail Transfer Book in use should remain in the custody of the official in charge
of the Remittance Department in locked box. It should be handed over to the N.T.
Issue Clerk when a mail transfer is to be issued.
3.3 At the end of the day, when the day's transactions are over, the mail transfer leaves
in the Nail Transfer Book should be verified by actual counting by the Official in Charge
of the Remittance Department.
4. REQUEST TO STOP PAYMENT OF MAIL TRANSFERS
+.1 Sometimes bank is approached by the remitter to stop payment of mail transfer. It
should be noted that position in this regard is different from a demand draft. In case
of mail transfer the remitter has a right to countermand payment till the bank has
effected the payment or committed to payment of mail transfer. Thus, whenever request
for stop payment of mail transfer is received from the remitter, the issuing branch
should immediately instruct the transferee branch not to make payment of mail transfer
to payee. On receiving confirmation from transferee branch that mail transfer is not
paid and that they are remitting back the amount of mail transfer, the amount may
be refunded back to remitter to the debit of IBCN Paid Afc. This entry in IBCN Paid
Afc. should be reversed on receiving IBCN from transferee branch.
+.2 Whenever a bill is received for collection from correspondent bank and where the
proceeds are remitted as per arrangement by mail transfer to our bank's branch for
credit of correspondent bank's account with them, it should be noted that the drawee
of the bill after making its payment has no right to ask the bank to stop payment of
mail transfer representing the remittance of proceeds of bill. Here the bank acts as
an agent for collection of the correspondent bank and there is no privity of contract
between the bank and the drawee. Branches should therefore totally disregard the
request of the drawees and carry out the remittance of proceeds.
CHAPTER-II
S+
+.3 The case would be different if the bank is served with a Prohibitory Order by a
directions contained therein fully complied with.
5. ISSUE OF DUPLICATE MAIL TRANSFER
S.1 MaII Transfers beIng an Inter-offIce communIcatIon the questIons of IssuIng
dupIIcates rareIy arIses. Refund may be made to the appIIcant at any tIme
before payment of the maII transfer after the appIIcant has canceIIed the
orIgInaI InstructIons.
6. CANCELLATION OF MAIL TRANSFERS
6.1 As a maII transfer Is not a negotIabIe Instrument no obIIgatIon on the part
of the Bank to the payee or benefIcIary Is created. ConsequentIy InstructIons
for Its canceIIatIon may be accepted from the appIIcant at any tIme prIor to
payment.
7. VALUE DATING OF MAIL TRANSFERS
i) Branches shouId afford credIt of MaII Transfers to cIIent's AJcs, wIthIn a
maxImum perIod of 7 days from the date of deposIt of funds for MTs. In
case the M.T. advIce reaches the destInatIon branch after 7 days for any
reason, the credIt shouId be made effectIve for Interest caIcuIatIon purposes
from Sth day.
ii) In case of MTs toJfrom branches In N.E. RegIon & SIkkIm the effectIve date
shouId be the 11th day or the date of receIpt of MT advIce, whIchever Is
earIIer.
iii) Branches shouId pay Interest on the proceeds of MTs for the deIayed perIod
{beyond the perIod of 7J1 days as mentIoned above) at the rate of 2
above the rate apIIcabIe to SB AJcs IrrespectIve of whether the proceeds of
MTs are meant for credIt to CDJSBJFDRsJBorrowaI AJc & aIso whether deIays
occur In postaI transItJdue to mIspIacement etc.
The Interest for deIay shouId be automatIcaIIy paId If the Interest Is
amountIng to Rs. 5J- or more. In cases where deIay occurs for the negIIgence
of empIoyeesJoffIcIaIs, accountabIIIty shouId be fIxed on the negIIgent staff
membersJoffIcIaIs and the amount of Interest payabIe shouId be recovered
from them.
B. MAIL TRANSFER PAYABLE
1. PAYMENT OF MAIL TRANSFER
1.1 When the transferee branch receives the mail transfer alongwith IBCN on Head Office
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SS
it should follow the undernoted procedure :-
a) The signature of the offIcIaIs signing the mail transfer should be carefully verified
in the usual manner.
b) Each branch should maintain a Nail Transfer Payable Register. As there is no
standard Nail Transfer Payable Register, the Demand Draft Payable Register on
Form B-36 may be used for this purpose. This Register should be maintained
branchwise having separate folios for each branch. The name of the drawer branch
should be mentioned at the top in the space provided for.
c) The particulars of mail transfer should be entered in the Nail Transfer Payable
Register and checked by offIcIaI-In-charge of Remittance Department who should
also put his initials in the appropriate column in the Register in token of his
having checked the particulars.
d) The following entries should be passed :-
DEBIT - Head Office Afc.
CREDIT - N.T. Payable Afc.
e) Usually the payee of a mail transfer is an account holder of the drawee branch.
In such cases, the account of the payee should be credited with the amount of
mail transfer by passing the following entries :-
DEBIT - N.T. Payable Afc.
CREDIT - Payee's Afc.
The mail transfer form itself can be treated as debit voucher and a separate
credit advice should be prepared and sent to the payee. To avoId doubIe
payment of the same MT the maII transfer shouId be canceIIed by
drawIng obIIque IIne across It and puttIng remark 'paId' on It aIongwIth
date and fuII sIgnature of the passIng offIcIaI.
The date of payment of mail transfer should be marked in N.T. Payable Register
and checked and initialled by the offIcIaI.
NOTE : Some times the name and the account numbers of the payees as
mentioned in the mail transfer may not agree with the name of the account
holder andfor his account number. It means the payee is not properly identified.
The drawee branch should not credit the remittance amount to any account. It
should inform the issuing branch about the discrepancy and request them to check
again the details about the payees and send again the full details concerning
him. On receipt of the same the particulars should be verified and if the name
and account numbers of the payee tallies with that on its records the N.T. should
be dealt with in the usual manner.
CHAPTER-II
S6
f) Sometimes a mail transfer may be for a person who does not maintain an account
with the transferee branch. In such cases the following procedure should be
adopted :-
i) A letter should be sent promptly to the payee advising him that a mail
transfer for a certain amount has been received in his favour and requesting
him to collect payment against proper identification and receipt. He should
be persuaded to open an account with the branch.
ii) When the payee calls on the bank, he should be issued a Nail Transfer
Receipt duly filling up the original as well as duplicate copy. For this purpose
Form B-16 (Telegraphic Transfer Receipt) may be used with suitable
amendments. The name and address of the payee should be written at
the top and initialled by conerned official.
iii) The payment may be made either on counter against proper identification
or through his bankers. Payment of NT for an amount above Rs. S0,000
must be made by payorder or credit to the Payee's account.
iv) The following entries should be passed :
DEBIT - N.T. Payable Afc
CREDIT - CashfClearing
There is no need to prepare a debit voucher but original N.T. Receipt (Form
B-16) itself will serve the purpose of debit voucher of N.T. Payable.
It should be ensured that N.T. Receipt is duly signed by payee on
appropriate, revenue stamp.
The date of payment of mail transfer should be marked in N.T. Payable
Register and cheked and initialled by an authorised official.
Note : N.T. Receipt is not a negotiable instrument. The benificiary cannot
therefore endorse it in favour of another person. The payment must be
received by the beneficiary himself or by his banker.
2. MAIL TRANSFERS REMAINING UNPAID FOR THREE YEARS
2.1 If a mail transfer issued by our branches remains unpaid for three years, proceeds
thereof should be transferred to Head Office after annual closing of accounts on 31st
Narch. The transfer should be effected positively in the first week of Nay every year.
2.2 The transferee branch while advising transfer of amounts of such mail transfers
remaining unpaid should furnish the following particulars to Head Office :-
i) Name of the drawing branch
ii) Date of mail transfer
iii) Number of mail transfer
iv) Name of beneficiary and address (if known)
CHAPTER-II
S7
v) Amount
vi) Reason for non payment, if any
2.3 The following entries should be passed :-
DEBIT - N.T. Payable Afc.
CREDIT - Head Office Afc.
2.+ Date of transfer should be marked against relative entries in N.T. Payable Register
with a remark Àmount transferred to Head Office'.
2.S For the transfer of such mail tansfers, the branches should make use of Form Act 26.
The Forms are in duplicate bound book. The original perforated form when duly filled
in should be detached and sent to Head Office. The duplicate copy should not be
detached as it would serve the purpose of the supporting statement for the voucher
and would remain in the register of the branch for ready reference. The date of entry
and the number of voucher should be noted in the rectangular space provided for
the purpose in the duplicate form. This rectangular space in original form should be
left blank for use at Head Office.
2.6 If later any claim for mail transfer so transferred to Head Office, arises, the same
should be submitted to Head Office with full explanation, cause of delay, and such
connected matters together with recommendation for consideration of Head Office. The
date on which the amount was transferred to Head Office should also be communicated
to Head Office.
2.7 On receipt of recommendation, the Head Office will transfer the amount to the branch
concerned for payment. When such payment is effected by the branch, it should be
noted in the column `Date of payment' against the appropriate item in the duplicate
form (ACT-26) remaining in the register.
CHAPTER-III
S8
CHAPTER-III
TELEGRAPHIC TRANSFER
The Fundamental principles governing telegraphic transfer are identical with the mail transfer
except that the adivce to the drawee branch is sent telegraphically instead of by mail. Thus
telegraphic transfer is a quicker way of remittance of funds than through mail transfer. If a person
wants to remit the amount urgently to the payee in another city, he may request the issuing
branch to send it by telegraphic transfer rather than by mail transfer.
{A) TELEGRAPHIC TRANSFERS SOLD
1. PROCEDURE FOR SALE OF TELEGRAPHIC TRANSFERS
1.1 Telegraphic Transfers can be sold on places where the bank has a branch. The
busIness of saIe of TTs may be dIvIded more or Iess under two heads :
a) TTs soId to repIenIsh cash resources of the branch
b) TTs sold to meet the convenience of our clients and other banks.
WhIIe teIegraphIc drawIng on branches for the purpose at sI. no. {a) above
Is dIscussed In VoI.1 {CASH) of Bank's ManuaI of InstructIons, the procedures
of TT saIes dIscussed hereInbeIow reIate mostIy to purposes at sI. no.{b). At
a place where there are more than one branch of the bank, telegraphic transfer should
be drawn on the main branch unless the purchaser specifically requests for issue of a
telegraphic transfer on a particular branch.
1.2 Head Office has fixed for each branch a limit upto which drawings by way of telegraphic
transfers can be made on it on any one day. As far as possible, limits for drawings
should not be exceeded. If an increased limit for drawings on any branch is found
necessary, the drawing branch should write in detail to Head Office for consideration
of an increase therein. If on any day total drawings on any branch exceed in a sizable
manner the limit fixed, the drawee branch should be advised by a telegram, or by
telephone, and requested to arrange for funds to meet the drawIngs.
It shouId be borne In mInd that It may not be remuneratIve In the Iong run
to draw TTs on branches who do not have spare funds to meet the drawIngs
from other pIaces from tIme to tIme. If the expenses Incurred by the drawee
branch for gettIng funds or borrowIng funds to meet such TTs, Is more than
the commIssIon earned on seIIIng the TTthe entIre busIness becomes
unvIabIe.
Care should be taken to see that other banks do not make us an instrument of making
things convenient for them at our cost.
Heavy TTs on pIaces where the Reserve Bank has no branch, and free
transfers are not avaIIabIe, shouId be avoIded unIess, of course, the drawIng
CHAPTER-III
S9
branch can send funds, preferabIy sImuItaneousIy wIth theIr drawIng to
drawee branch to cover theIr T.T. saIes.
1.3 An application should be obtained from the remitter in Form B-18. This application is
printed on both sides. The appIIcatIon form {B1S) shouId be scrutInIsed by
the offIcIaI In charge of the RemIttance Deptt. for the foIIowIng :
1. The bank has a branch at the pIace where the TT Is requIred.
2. InappIIcabIe expressIons have been deIeted under the authentIcatIon of
the appIIcant.
3. The appIIcant has cut & authentIcated eIther of the two aIternatIves for
sendIng the TeIegrams I.e. urgentJordInary.
+. The appIIcant has cut & authentIcated eIther of the two modes of
payment of amount to benefIcIary I.e. 'AdvIse & pay' or 'CredIt the AJc'.
If 'CredIt the AJc' mode Is seIected, detaIIs of the account of the payee
wIth drawee branch {AJc. Type & No.) shouId be gIven.
If 'advIse & pay' mode Is seIected, compIete postaI address of the
benefIcIary shouId be gIven.
S. The commIssIon & TeIegram charges IncIudIng ServIce Tax {based on
urgentJordInary mode) have been correctIy computed and entered In the
voucher.
6. The appIIcant has gIven hIs fuII name and address.
7. The appIIcant has sIgned the voucher {B-1S).
After scrutInIsIng the appIIcatIon and gettIng addItIonsJaIteratIons made
under authentIcatIon, wherever necessary, the offIcIaI In charge shouId
sIgn the same.
1.+ Sometimes a customer sends a letter of authority requesting for remittance by
telegraphic transfer to the debit of his account. In such cases, it should be ensured
that all the particulars about telegraphic transfer which should be given in the T.T.
Application Form are also given in the letter. In such cases, the T.T. Application Form
will have to be prepared by the branch, in accordance with the instructions contained
in the letter, and should be authenticated by an authorIsed offIcIaI.
The signature of the customer in the letter requesting for remittance by telegraphic
transfer should be verified and initialled by an authorIsed offIcIaI. When the account
is debited, letter should be cancelled with an oblique line with notation È.P.' for èntry
passed'. The cancellation should be dated and initialled by the offIcIaI signing the
debit voucher and the letter should be attached to the relative debit voucher. Care
must be taken to ensure that the telegraphic transfer is not effected before the
applicant's account with the branch has been debited.
CHAPTER-III
60
bank for remittance by telegraphic transfer. In such cases, the cheque should be
accompanied by a covering letter with instructions regarding application of money
represented by cheque. The covering letter should also be signed by the person(s)
authorised to operate on the account. Without such authority, the cheque should not
be utilised to issue telegraphic transfer as tendering of cheque in favour of the bank
is no authority to make a remittance on the instructions of a third party by debiting
the drawer's account.
NOTE : Customers who request the bank by letters for remittances by telegraphic
transfers to the debit of their accounts, should be advised that the transfers are effected
on terms and conditions stated in the application form. These conditions protect the
bank in the event of mutiliation, non-delivery or any error accruing into message during
transit and also indemnify it against any inadvertent over-paymentfwrong-payment.
1.S Telegraphic Transfer Application Form, which also serves the purpose of credit voucher,
should be sent to Cash DepartmentfDeposit Department as the case may be after
entering it in Cash ScrollfTransfer Scroll.
Account Debited Stamp and is duly signed by the ChieffHead Cashierfany authorIsed
offIcIaI of the Deposit Department.
1.6 Each branch should maintain a T.T. Sold Register (Form B-13). All the TTs issued should
be recorded in the T.T. Sold Register noting therein the particulars of each telegraphic
transfer. The entries should be initialled by authorIsed offIcIaI dealing with them.
Separate folios should be opened in T.T. Sold Register for each branch on whom
telegraphic transfers are drawn.
CREDIT - T.T. Issued Afc
DEBIT - T.T. Issued Afc
CREDIT - Head Office Afc
CREDIT - Inland Exchange and commission-sub
head-Telegraphic Transfer
CREDIT Working Expenses Afc Telegram & Telephones
At the end of the day, T.T. Issued Afc should show a nil balance.
1.8 An advice in Form B-12 should be prepared and addressed to the drawee branch.
The word Demand Drafts should be carefully scored through in the advice. These
advices should be signed by two authorIsed offIcIaIs of the drawing branch.
CHAPTER-III
61
1.9 If the remitter desires, a memo of charges may be supplied to him in Form B-19.
1.10 A telegram should be prepared in the Telegram Order Book (Form G-81) in plain
language.
While preparing telegram, it should be ascertained from the T.T. application as to
whether the payee maintains an account with drawee branch. In case, account is
maintained by payee then the words ``Credit the account..........'' should be used and
full particulars of account should be given. In case no account is maintained by the
payee with the drawee branch, then the words `Àdvise and pay...........''should be used
and full address of payee should be given in the telegram.
It is desirable to provide for an additional check on the amounts involved in telegraphic
transfer in order to facilitate reconciliation of the amounts when the relative code words
in the telegram are mutiliated in course of transmission. For this purpose, where a
single payment is advised by telegram, the words `double of' should be added in the
telegram followed by an additional figure representing half the amount ordered to be
paid in the telegram If more than one payment is directed in a single telegram, the
total of all the payments involved preceded by the word ``total'' should be given as
the additional check mentioned above. Thus the telegram directing a single payment
should read as `Àdvise and pay AB Rs. 10,000f- double of Rs. S,000f-''. Those directing
more than one payment should read as ``Pay AB Rs. S,000f- CD Rs.10,000f- total
Rs. 1S,000f-''.
1.11 While signing the Telegram Order Book, the official concerned should :-
i) ensure that remitter's instructions for disbursement are correctly stated;
ii) compare the name of payee, drawee branch and amount with the T.T. Application
Form;
iii) ensure that telegram either contains the full details of the account maintained
by payee with the drawee branch or the full address of the payee;
iv) satisfy himself that the branch has received the amount of the telegraphic transfer
from the remitter. If the remitter pays in cash, the official must satisfy himself
that cash has been paid into the Cash Department and telegraphic transfer
voucher bears the signatures of the ChieffHead Cashier; If the remitter has paid
for the telegraphic transfer by a cheque, it must be ensured that telegraphic
transfer voucher indicates that cheque has been realised and bears the signature
of cheque passing official of Deposit Department across Àccount Debited' stamp.
v) Telegraphic transfer for Rs. S0,000f- and above should be made only to the
debit of the applicant's account or against cheques or other instruments tendered
by the applicant and not in cash.
1.12 The officer signing the Telegram Order Book should also initial in T.T. Application Form
at the right hand side under the words `Telegram Despatched'. This is a necessary
CHAPTER-III
62
precaution to obviate the possibility of more than one telegram being sent against
one application form.
1.13 The text of the telegram should be entered in the Telegram Outward Register (Form
G-8SA)
This register should be maintained branch-wise so that the continuity in the serial
number of telegrams can be maintained in respect of each branch.
1.1+ The text of the telegram should then be coded with he help of :
a) Bank's Private and Confidential Code;
b) Bentely's code;
The coding should be done by the officer-in-charge of the Remittance Department. In
doing that he must see that :
i) the message and amounts are coded correctly;
ii) the meaning of the telegram is not lost in such coding;
iii) brevity and precision are maintained.
Note : The coding of telegrams should be done by an authorIsed offIcIaI and on
no circumstances by any member of the clerical staff.
1.1S The officers holding the test cyphers should thereafter give their cyphers. The test
cypher should be prefixed to the message of telegram.
NOTE :-(i) The need for accuracy and care in calculation of cyphers cannot be over
emphasised. Wrong test cyphers lead to unnecessary and avoidable delay and expenses
causing inconvenience and loss to the beneficiary. If the beneficiary is not able to get
the benefit of the telegraphic transfer in time on account of the mistake in the
calculation of the test cypher, the bank may be held responsible for any loss that
may be suffered by the parties. Apart from claim for loss, it is very inconvenient and
annoying to the remitter who may stop dealing with the bank.
ii) As an additional precaution, the officers giving test cyphers should also call for
the T.T. Application to verify the amount of T.T. and name of beneficiary as
mentioned in telegram. They should also see that the T.T. Application shows
that branch has received the amount of telegraphic transfer from applicant. After
giving the test cypher, they should initial the voucher at the right hand corner
to avoid the possibility of giving test cypher twice in respect of same telegraphic
transfer.
iii) It is essential that the secrecy of the test cypher book is scrupulously maintained.
The test cypher books and code books must remain in the custody of the
authorised officers and should never be left ungaurded. Before leaving the office,
the concerned officers must see that they have placed the telegraphic test cypher
CHAPTER-III
63
book in the fire proof safe. Officer handling one part of the test cypher should
not be allowed to handle the other part.
iv) The calculation showing how the test cypher number has been arrived at should
never be entered on the voucher or Telegram Order Book. This practice is
dangerous and can result in the leakage of the test cypher. The slip or paper
on which the test cypher number is calculated must be destroyed immediately
to prevent the possibility of its falling into wrong hands.
v) If the Test Cypher Book gets lost under any circumstances or if it is felt by the
Nanager that an unauthorised person had access to it because of either careless
handling or the test key having been left overnight unguarded, the Head Office
should be intimated over the trunk telephone or by an express telegram and till
such time as instructions are received from them, the Test Cypher Book should
not be used for authenticating any message involving payment of money.
1.16 If the remitter has requested the transfer to be effected through an express telegram,
immediate steps should be taken for the despatch of the telegram.
However, if the transfer is required to be effected through an ordinary telegram, the
telegram may be sent at the end of the day and not immediately as in the case of
an express telegram. It should be noted that it is the responsibility of the bank to
despatch the telegram the same day on which T.T. Application is dealt with.
1.17 Nail confirmaton of telegram on Form G.38 A should be prepared and sent to drawee
branch. This mail confirmation of telegram should carry the message in plain langauge
and signed by two authorised officers. Nail confirmation should be despatched on the
same day on which relative telegram has been sent.
1.18 The IBCN for the amount of telegraphic transfer together with drawing advice on form
B-12 should also be sent on the same day.
1.19 Whenever duplicate T.T. Receipt {form B-16) is received from the drawee branch,
date of its receipt should be marked in the T.T. Sold Register in the column
Àcknowledgement Received on'.
2. REQUEST TO STOP PAYMENT OF TELEGRAPHIC TRANSFERS
2.1 Sometimes branch is apporached by the remitter to stop payment of telegraphic transfer.
It should be noted that in case of telegraphic transfer, the remitter has a right to
countermand payment till the bank has effected its payment or committed to pay it.
Thus whenever request for stop payment of telegraphic transfer is received from
remitter, the issuing branch should immediately instruct the drawee branch not to make
payment of telegraphic transfer to payee. On receiving confirmation from drawee branch
that telegraphic transfer is not paid and that they are remitting back the amount of
telegraphic transfer, the amount may be refunded back to remitter to the debit of
IBCN Paid Afc. This entry in IBCN Paid Afc should be reversed on receiving IBCN
from drawee branch.
CHAPTER-III
6+
NOTE:-A telegraphic transfer can be stopped at the request of the remitter till the
actual payment is effected to the beneficiary. If the remittance is credited to the
beneficiary's account, it cannot be reversed without the consent of the beneficiary.
Since the transfers are effected telegraphically, the possibility of the branches being
able to stop payment of the transfer amount is in fact and in practice, very remote.
2.2 Whenever a bill is received for collection from correspondent bank and where the
proceeds are remitted as per arrangement by telegraphic transfer to our bank's branch
for credit of correspondent bank's account with them, it should be noted that in such
cases the drawee of the bill after making its payment has no right to ask the bank
to stop payment of telegraphic transfer representing the remittance of proceeds of
bills. Here the bank acts as an agent for collection of the correspondent bank and
there is no privity of contract between the bank and the drawee. Branches should
therefore totally disregard the requests of the drawees and carry out the remittance
of proceeds.
2.3 The case would be different if the bank is served with a Prohibitory Order by a
directions contained therein fully complied with.
{B) TELEGRAPHIC TRANSFERS PAYABLE
1. PAYMENT OF TELEGRAPHIC TRANSFER
1.1 On receIpt of teIegraphIc massage regardIng transfer of funds from the
IssuIng branch, the date & tIme of receIpt shouId be noted thereon under
InItIaIs of offIcIaI In charge of RemIttance department of the drawee branch.
The telegram should be decoded with the help of :-
i) Bank's Private and confidential Code
ii) Bentley's Code
1.2 The text of the telegram should be entered serially in Telegram Inward Register (Form
G-8S). The register should be maintained branch-wise.
1.3 The test cypher on the telegram should be verified by the two officers holding the
two parts of the test cypher. If the test is correct, they should put the following rubber
stamp on the telegram and sign it.
Test cypher verified and found correct
Officer-in-charge Part I
Officer-in-charge Part II
1.+ If the test cypher is found to be incorrect, it should be checked again to be sure
that it is really incorrect. If on a second verification also the test cypher is found to
be incorrect a telegram should be sent to the branch concerned informing them that
test cypher is incorrect and requesting them to advise correct test cypher.
CHAPTER-III
6S
CAUTION : NO PAYNENT SHOULD BE EFFECTED ON THE BASIS OF A TELEGRAN, THE
TEST CYPHER OF WHICH IS FOUND TO BE INCORRECT. AGAIN, WHERE THE TEXT
OF THE MESSAGE IS INCORRECT AND THE AMOUNT IS MUTILATED,
CREDITING THE AMOUNT IN CUSTOMERS' ACCOUNT IS FRAUGHT WITH
RISKS AND LENDS SCOPE FOR MISUSE BY UNSCRUPULOUS PERSONS. IN
SUCH CASES WHERE THE MESSAGES ARE UNDECIPHERABLE OR ARE
RECEIVED MUTILATED, CONFIRMATORY ADVICES SHOULD BE CALLED FOR
FROM THE REMITTING BRANCHES. NO PAYMENT SHOULD BE EFFECTED
BEFORE RECEIPT OF THE CONFIRMATORY ADVICE.
1.S Nail Confirmation of telegram on Form G-38 should be prepared and sent to drawing
branch. The mail confirmation should carry the message in plain language and signed
by two authorIsed offIcIaIs. It should be despatched on the day on which relative
telegram has been received.
1.6 For the telegraphic transfer, the test cypher of which is found to be correct, an entry
should be made in the T.T. Payable Register (Form B-1+). Entries in the Register should
be checked and initialled by an offIcIaI.
Sometimes due to inefficiency of Post and Telegraph Services, the same telegram is
delivered twice with the result that there is risk of the branch to whom it is so delivered
making payment of a T.T. twice. In order to avoid this, branches should enter all
telegraphic transfers received by them in T.T. Payable Register on separate folios allotted
for each branch. If two identical payment orders emanate from a branch on the same
day, the receiving branch must satisfy itself beyond doubt by a reference to the
remitting branch, if necessary, that the second telegram is in order before effecting
payment.
DEBIT - IBCN Paid Afc
CREDIT - T.T. Payable Afc
1.8 Usually the payee of a telegraphic transfer is an account holder of the drawee branch.
telegraphic transfer by passing the following entries :-
DEBIT - T.T. Payable Afc
CREDIT - Payee's Afc
A credit advice should be sent to the payee advising him about credit in his account.
An advice should also be sent to the remitting branch that payee's account has been
credited with the amount of telegraphic transfer sent by them.
The date of payment of telegraphic transfer and of sending advice of payment to
remitting branch should be marked in T.T. Payable Register and checked and initialled
by an authorIsed offIcIaI.
CHAPTER-III
66
NOTE :
i) Sometimes the name and the account number of the payee, as mentioned in
telegram, may not agree with the name of the account holder and his account
number. It means that the payee is not properly identified. The drawee branch
should not credit the remittance amount to any account. It should send an urgent
telegram to the issuing branch requesting them to repeat the name of payee
and particulars of his account to which T.T. amount is to be credited.
ii) Sometimes telegraphic transfers may be received for credit of an account and in
case the payee has no account, enquiries should be made to the extent possible,
from other local branches of the bank at the place, whether the beneficiary has
an account with them.
1.9 When a telegraphic transfer is received with instructions `to advise and pay' and the
payee has no account with the drawee branch, the following procedure should be
followed :-
a) A letter should be sent promptly to the payee advising him that a telegraphic
him to collect payment against proper indentification and receipt.
b) Whenever the payee calls on the branch, he should be issued a Telegraphic
Transfer Receipt in Form B-16 after filling all the particulars therein in original
as well as duplicate copy. The name and address of the payee should be written
at the top and initialled by the concerned official.
c) The payee may collect payment of telegraphic transfer either through his bankers
or on counter in cash. Payment of telegraphic transfer for an amount above
Rs. S0,000f- must be made by payorderfor by credit to payee's afc. Both the
Receipts (original and the duplicate) should be returned to the bank with the
payee's discharge on both of them. (Discharge on original should be on revenue
stamp)
Cash payment for a telegraphic transfer (upto Rs. S0,000f-) should be made only
against proper identification. Whenever the payment is made through clearing,
the receipt should bear the banker's certificate confirming the discharge of the
payee or certifying that the payee's account has been or will be credited.
It should be noted that whenever payment is made of telegraphic transfer through
another bank, the certificate of the collecting bank on T.T. Receipt, for having
credited the payee's account with them is not sufficient. The Receipt must also
bear the discharge of the payee. It should therefore be seen that both the
Receipts (original as well as duplicate) have been signed by beneficiary whether
the T.T. was paid on counter or through clearing.
NOTE : T.T. Receipt is not a negotiable instrument. The payee therefore cannot
endorse it in favour of another person. The payment must be obtained by the
payee himself or by his banker.
CHAPTER-III
67
In case the payee wants the payment to be made to one of his agentsf
employees, the Receipt must be discharged by the payee himself and a request
should be made by him in a covering letter to the bank to make payment to
such agent or employee. The signatures of such agentfemployee should be
appended to such letter and verified by the payee.
In case payment of T.T. is to be effected to authorised person in the manner
described above, it is essential that this facility is extended to the bank's valued
customers only and :-
i) The signatures of the beneficiary on the T.T. Receipt in discharge thereof
are very carefully verified;
ii) Proper and satisfactory identification of the person receiving the payment
is obtained.
d) The following entries should be passed :
CREDIT - CashfClearing
There is no need to prepare a debit voucher, but original T.T. Receipt (Form B-
16) itself will serve the purpose of debit voucher of T.T. Payable.
e) The date of payment of Telegraphic Transfer should be marked in T.T. Payable
Register and checked and initialled by an official.
f) The duplicate T.T. Receipt should be sent to drawing branch under a covering
letter on Form No. B-1S-A. The date of sending duplicate receipt to drawing
branch should be marked in T.T. Payable Register.
1.10 The Nail Confirmation of the telegram should be carefully watched. Its receipt should
be recorded in:
a) T.T. Payable Register
b) Register of Inward Telegrams.
The signatures of authorIsed offIcIaIs signing the mail confirmation of telegram
received should be verified and the message contained therein compared with the
message noted in Register of Inward Telegram and with particulars in T.T. Payable
Register. In case of a discrepancy proper enquires should be made and matter taken
up with drawing branch.
1.11 Sometimes a branch may receive mail confirmation of a telegram but the telegram
itself may not have been received. In such a case, no action should be taken on the
mail confirmation but the branch should immediately get in touch with the drawing
branch and inform them the position and await their instructions. In case there are
other branches of the bank in the place of drawee branch, enquiries should also be
CHAPTER-III
68
made with those branches to find out whether telegram has been received by them
and payment effected.
1.12 The drawee branch should watch that it receives drawing advice and IBCN in respect
of T.T. Paid from the drawing branch without any delay. In case such advice and IBCN
is not received on the expected day i.e. allowing for the normal time taken by mail,
telegram about such non-receipt should be sent to the branch concerned.
1.13 On receipt of IBCN in reimbursement, the following entries should be passed :-
DEBIT - Head Office Afc
Credit - IBCN Paid Afc
1.1+ Sometimes an IBCN covering reimbursement of telegraphic transfer may be received
by drawee branch, but the telegram may not have been received. In such a case,
payment should not be effected but branch should send a telegram to drawing branch
informing them the position and await their instructions. In case, there are other
branches of our bank at the place, enquires should be made with them as to whether
the relative telegram had been received by them and payment effected. Utmost caution
must be exercised in the matter.
1.1S PossIbIe DeIIvery of DupIIcate TeIegrams
Sometimes the Telegraph Department repeats telegrams through oversight either on
the same day or on the next day or even some days after issue of original telegram.
In such a case, their is a possibility that the original telegram might well be lost sight
of, unless care is taken to ascertain from Telegram Inward Register and T.T. Payable
Register if another telegraphic transfer from the same branch for the same amount in
favour of the same payee and despatched on the same day has been received earlier.
Branches should pay particular attention to the date of issue of a telegram. The T.T.
Payable Register should be referred to as far back as the date of issue to ascertain
if another telegraphic transfer for the same amount in favour of the same payee has
been received from the same branch (to facilitate such a reference, T.T. Payable Register
is required to be maintained branchwise, each branch being allotted separate folio). It
should be seen that no second telegraphic transfer of the same date of issue for the
same amount from the same branch is acted upon and paid unless the test cypher
thereon is different. The bank's test cypher key provides for a different number for
such second telegraphic transfer.
2. TELEGRAPHIC TRANSFERS REMAINING UNPAID FOR THREE YEARS
2.1 Telegraphic Transfers issued by our branches which remain unpaid for three years should
be transferred to Head Office after annual closing of accounts on 31st Narch. The
transfer should be effected positively in the first week of Nay every year. In practice
there will be hardly any occasion for transferring an outstanding telegraphic transfer
to Head Office.
CHAPTER-III
69
2.2 The drawee branch, while advising transfer of amounts of such telegraphic transfers
remaining unpaid, should furnish the following particulars to Head Office :
i) Name of Drawing Branch
ii) Date of Telegraphic Transfer
iii) Name of Beneficiary & Address (if known)
iv) Name of Applicant & address (if available in telegram)
v) Amount
vi) Reasons for non-payment (if any)
2.+ Date of transfer should be marked against relative entries in T.T. Payable Register with
a remark Àmount transferred to Head Office'.
2.S For the transfer of such telegraphic transfers, the branches should make use of Form
ACT 27. The forms are in duplicate bound book. The original perforated form when
duly filled in should be detached and sent to Head Office. The duplicate copy should
not be detached as it would serve the purpose of the supporting statement for the
voucher and would remain in the Register of the branch for ready reference. The date
of entry and the number of voucher should be noted in the rectangular space for the
purpose in the duplicate form. This rectangular space in the original form should be
2.6 If later any claim for the amount of telegraphic transfer so transferred to Head Office
arises, the copy of the claim should be submitted to Head Office with full particulars
and cause of delay and other connected matters and the date on which the amount
was transferred to Head Office together with recommendations for consideration of
Head Office.
noted in the column `Date of Payment' against the appropriate item in the duplicate
form (ACT 27) remaining in the Register.
3. VALUE DATING OF TELEGRAPHIC TRANSFERS
3.1 Branches shouId afford credIt of TTs to cIIents' AJcs wIthIn a maxImum
perIod of 2 days from the date of deposIt of funds for TT In respect of TTs
Issued from & payabIe at state capItaIs and Area-1 centres {centres wIth
popuIatIon of 12 Iakhs & above). In case, If for any reason the teIegram
CHAPTER-III
70
reaches the destInatIon branch after 2 days, the credIt shouId be made
effectIve for Interest caIcuIatIon purpose from the 3rd day.
3.2 For other centres IncIudIng the State CapItaIs and Area-1 centres In N.E.
RegIon & SIkkIm, CredIt shouId be afforded ImmedIateIy on receIpt of
teIegramJcopy of teIegram whIchever Is earIIer.
3.3 In case of any deIay, branches shouId pay Interest @2 p.a. over the S.B.
rate for deIayed perIod.
4. BALANCING
+.1 The T.T. Payable Afc should be balanced like D.D. Payable every month. Normally no
balance should remain in T.T. Payable Afc.
CHAPTER-III
71
CHAPTER-IV
TELEPHONIC TRANSFERS
Telephonic Transfer is the quickest way of remitting funds from one place to another. However
transfer of funds on behalf of clients through the agency of telephones should not be encouraged.
Where a branch finds it necessary to effect telephonic transfers from time to time on account of
a few of their absolutely first class and highly valuable customers, their names as also the name
of the beneficiaries of the transfers should be got approved by Head Office sending credit reports
on them.
Where the drawer and drawee branches are having telex facilities, the message of remittance
may be conveyed by drawer branch to drawee branch by means of telex rather than telephone.
In such cases, all instructions with regard to telephonic transfers are mutatis mutandis applicable
to telex transfer also.
{A) TELEPHONIC TRANSFERS SOLD
1. Procedure for SaIe of TeIephonIc Transfers
1.1 An application should be obtained form the remitter in Form B-18 with the following
modifications :-
(a) the words ùrgentfordinary telegram' should be deleted and the words `telephone'
should be added in the first line.
(b) In the sixth line the last word `Telegram' should be deleted and the words
`Telephone Nessage' should be added.
(c) The second paragraph of the application form should be made to read ``The cost
of the telephone and of your telegram confirming the telephone message is
included in the amount of our chequefcash which is enclosed.''
All the above additions and corrections should be authenticated under the signatures
of the applicant.
1.2 The application form B-18 is printed on both sides and it should be seen that all the
necessary particulars have been filled in. It should also be ensured that applicant has
given his full name and address in the application form and has signed it.
The applicant should also cut and authenticate either of the two alternative modes of
payment of amount to the beneficiary i.e.
Àdvise and Pay' or `Credit the account of'. If the beneficiary maintains an account
with the drawee branch, then `Credit the account of'. Otherwise the words Àdvise
and Pay' should be used in which case the applicant should give complete postal
address of the beneficiary in the application.
CHAPTER-IV
72
1.3 Sometimes, a customer sends a letter of authority requesting for remittance by
telephonic transfer to the debit of his account. In such cases, it should be ensured
that all the particulars about telephonic transfer which should be given in the T.T.
Application form are also given in the letter. In such cases, the T.T. Application form
will have to be prepared by the branch. It should be seen that it is prepared in
accordance with the instructions contained in the letter. The particulars in the application
form so prepared should be authenticated by an authorIsed offIcIaI.
The signatures of the customer in the letter requesting for remittance by telephonic
transfer should be verified and initialled by an offIcIaI. When the account is debited,
the letter should be cancelled with an oblique line with the notation È.P.' for èntry
passed'. The cancellation should be dated and initialled by the offIcIaI signing the
debit voucher and the letter should be attached to the relative debit voucher. Care
must be taken to ensure that the account of the applicant is in fact debited before
the telephonic transfer is effected.
bank for remittance by telephonic transfer. In such cases, the cheque should be
accompanied by a covering letter with instructions regarding application of money
represented by cheque. The covering letter should also be signed by the person(s)
authorised to operate upon the account. Without such authority, the cheque should
not be utilised to issue telephonic transfer as tendering of cheque in favour of the
bank is no authority to make a remittance on the instructions of a third party by
debiting the drawer's account.
NOTE :-Constituents who request the bank by letters for remittance by telephonic
transfers to the debit of their accounts, should be advised that the transfers are effected
on terms and conditions stated in the Application form.
1.+ Commission including service tax on telephonic transfer should be charged on the same
IInes as for TeIegraphIc transfer. In addition to commission, suitable telephone and
telegram charges should also be recoverd from remitter.
1.S Telephonic Transfer Application form which also serves the purpose of credit voucher,
should be sent to Cash DepartmentfDeposit Department as the case may be, after
entering it in the Cash ScrollfTransfer Scroll.
Account Debited Stamp and is duly signed by the ChieffHead Cashierfany authorised
offIcIaI of Deposit Department.
1.6 Particulars of all telephonic transfers should be recorded in T.T. Sold Register (Form
B-13)
NOTE : As telephonic transfers are rarely sent, particulars of such transfers may also
be recorded in T.T. Sold Register meant for telegraphic transfers. A remark should be
made to the effect that remittance has been made by telephonic transfers.
CHAPTER-IV
73
1.7 The following entries should be passed :
CREDIT - T.T. Issued Afc.
DEBIT - T.T. Issued Afc.
CREDIT - Inland Exchange & Commission including service tax
sub head-T.T. Issued
CREDIT WorkIng expenses-AJc TeIegram & TeIephones
At the end of the day, T.T. Issued Afc should show Nil balance.
1.8
An advice in Form B-12 should be prepared addressed to the drawee branch. The
word Demand Draft should be scored through in the adivce. It is advisable that in
the advice a notation in red ink be made to the effect that amount related to telephonic
transfer.
The advice should be signed by two authorised officers of the drawing branch.
1.9 If the remitter desires, a memo of charges may be supplied to him in Form B-19.
1.10 A telegram should be prepared in the Telegram Order Book(Form-G81) in plain language.
While preparing telegram, it should be ascertained from the T.T. Application as to
whether the payee maintains an account with drawee branch. In case account is
maintained by payee, then the words ``Credit the Account'' should be used and full
particulars of account should be given. In case no account is maintained by the payee
with the drawee branch, then the words `Àdvise and pay'' should be used and full
address of the payee should be given in the telegram.
For the purpose of the telephonic transfer, the telegram should be prepared in the
following form :-
` ` (TEST) WE CONFIRN OUR TELEPHONIC NESSAGE OF DATE TO
PAY............................................ (name of the beneficiary with full address) A SUN
OF Rs............................ (Amount) DOUBLE THE ANOUNT OF RS...............................
(Amount) STOP THIS TELEGRAN DOES NOT CONSTITUTE FRESH INSTRUCTIONS TO
PAY.''
OR
` ` (TEST) WE CONFIRN OUR TELEPHONIC NESSAGE OF DATE TO CREDIT
RS......................(Amount) DOUBLE THE ANOUNT OF RS............................(Amount) TO
THE ACCOUNT OF..................................... (Name of beneficiary with full particulars
of Afc.) STOP THIS DOES NOT CONSTITUTE FRESH INSTRUCTIONS TO PAY.''
CHAPTER-IV
7+
1.11 While signing the Telegram Order book, the officer concerned should :-
i) Ensure that remitter's instructions for disbursement are correctly stated.
ii) Compare the name of payee, drawee branch and amount with the T.T. Application
Form.
iii) Ensure that telegram either contains the full details of the account maintained
by payee with the drawee branch or the full address of the payee.
iv) Satisfy himself that the branch has received the amount of telephonic transfer
from the remitter (if the remitter pays in cash, the officer must satisfy himself
that cash has been paid into the Cash Department, and T.T. Application bears
the signatures of the ChieffHead Cashier; if the remitter has paid for the
telephonic transfer by cheque, it must be ensured that telephonic transfer voucher,
indicates that cheque has been realised and bears the signatures of cheque
passing offIcIaI of Deposit Department across Àccount Debited' stamp).
1.12 The Officer signing the Telegram Order Book should also initial the T.T. Application
form at the right hand side under the words ``Telegram Despatched''. This is a necessary
precaution to obviate the possibility of more than one telegram being sent against
one application form.
1.13 The text of the telegram should be entered in the Telegrams Outward Register (Form
G.8S-A)
1.1+ The text of the telegram should then be coded with help of :-
a) Bank's private and confidential code
b) Bentley's code
The coding should be done by the officer in charge of the Remittance Department in
doing so he must see that :
i) The message and amounts are codded correctly
ii) The meaning of the telegram is not lost in such coding
iii) Brevity and precision are maintained.
Note : The coding of telegram should be done by an authorised officer and on no
account by any member of the clerical staff.
1.1S The officers holding the Test Cypher should thereafter give their cyphers. The test
cypher should be prefixed to the message of the telegram.
Note :
i) The need for accuracy and care in calculation of cyphers cannot be over
emphasised. Wrong test lead to unnecessary and avoidable delay and expenses.
If the beneficiary is not able to get the benefit of the telephonic transfer in
time on account of mistake in the calculation of the test cypher, the bank may
CHAPTER-IV
7S
be held responsible for any loss that may be sufferred by the parties. Apart
from claim for loss, it would be very inconvenient and annoying to the remitter
who may stop dealing with the bank.
ii) As an additional precaution, the officers giving test cyphers should also call for
the T.T. Application to verify the amount of T.T. and name of payee as mentioned
in telegram. They should also see that the T.T. Application shows that branch
has received the amount of telephonic transfer from applicant. After giving the
test cypher, they should initial the voucher at the right hand corner to avoid
the possibility of giving test cypher twice in respect of same telephonic transfer.
iii) It is essential that the secrecy of the test cypher book is scrupulously maintained.
The test cypher books and code books must remain in the custody of the
authorised officers and should never be left unguarded. Before leaving the office,
the concerned officers must see that they have placed the test-cypher books
and code books in fire proof safe. Officer using one part of the test cyphers
should not have access to the other part of the cypher.
iv) The calculation showing how the test cypher number has been arrived at should
never be entered on the voucher or Telegram Order Book. This practice is
dangerous which can result in the leakage of the test cypher. The slip or paper
on which the test cypher number is calculated must be destroyed immediately
to prevent the possibility of its falling into wrong hands.
v) If the test cypher book gets lost under any circumstances or if it is felt by the
Nanager that some unauthorised person had access to it because of either
careless handling or the test key having been left overnight unguarded, the Head
Office should be intimated over the trunk telephone or by an express telegram
and till such time as instructions are received from them, the test cypher book
should not be used for authenticating any message involving payment of money.
1.16 The message of telegram should be conveyed to the drawee branch over telephone.
Officer conveying the message over telephone should follow the undernoted
procedure :-
i) The officer speaking over the phone should first announce his name, designation
& PF No.
To verIfy that he Is taIkIng to the branch where TT Is to be made he
shouId ask to speak to an offIcer of the branch. On beIng connected
to an offIcer he shouId ask for branch AIpha Code and IdentIfIcatIon
No.
ii) If Branch AIpha Code & IdentIfIcatIon no. Is correctIy gIven he should
then ask the name, designation and PF No. of the person speaking at the other
end.
CHAPTER-IV
76
iii) He should then read out in plain language the text of the telegram before him
beginning with the test word.
While reading the text of the telegram, only the following portion of the message
prepared as mentioned in para No.1.10 should be read out :-
TEST ADvISE AND PAY............................................................... (Name of
beneficiary with full address) A SUN OF Rs............................... DOUBLE THE
ANOUNT OF RS............................
OR
TEST CREDIT RS........................ DOUBLE THE ANOUNT OF RS..............................
TO THE ACCOUNT OF............................................................................) (Name
of beneficiary with full particulars of Afc)
iv) The officer at the receiving end should repeat the text as he has taken it down
and ensure that it is correct.
1.17 The officer who has conveyed the message to pay should sign the telegram himself
and note on the office copy the time when the telephone call was put through and
the name and designation and PF No. of the officer of the other branch who received
the message. This information should also be noted down in the Telegram Outward
Register.
1.18 Thereafter the telegram should be sent. It should be sent on the same day on which
message of T.T. is conveyed over phone to drawee branch.
1.19 Nail confirmation of telegram on Form G.38-A should be prepared and sent to drawee
branch. This mail confirmation of telegram should carry the message in plain language
and signed by two authorised offIcIaIs. Nail confirmation should be despatched on
the same day on which relative telegram has been sent.
1.20 IBCN for the amount of telephonic transfer together with drawing advice on Form B-
12 should be sent on the same day.
1.21 Whenever duplicate T.T. Receipt is received from the drawee branch, date of its receipt
should be marked in the T.T. Sold Register in the column Àcknowledgement Received
on'.
{B) TELEPHONIC TRANSFER PAYABLE
1. PAYMENT OF TELEPHONIC TRANSFER
1.1 The officer who received the message should at once get it typed, and have it sent
to Remittance Department after affixing his signature and noting the time when the
message was received.
1.2 The text of telephonic message should be entered in Telegram Inward Register (Form
G-8S)
1.3 Test cypher on the message should be verified by the two officers holding the two
CHAPTER-IV
77
parts of the test cypher. If the test is correct, they should put the following rubber
stamp and sign it.
Test cypher verified and found correct
OFFICER IN CHARGE Part-I
OFFICER IN CHARGE Part-II
1.+ If the test cypher is found to be incorrect, it should be checked again to be sure
that it is really incorrect. If on a second verification also the test cypher is found to
be incorrect, an urgent telegram should be sent to the branch concerned informing
them that test cypher is incorrect and requesting them to advise correct test cypher.
CAUTION : NO PAYNENT SHOULD BE EFFECTED ON THE BASIS OF TELEPHONIC
NESSAGE THE TEST CYPHER OF WHICH IS FOUND TO BE INCORRECT.
1.S For the telephonic transfers, the test cyphers of which are found to be correct entries
should be made in the T.T. Payable Register (Form B.1+). Entries in the Register should
be checked and initialled by an officer.
DEBIT - IBCN Paid Afc
CREDIT - T.T. Payable Afc.
1.7 Usually the payee of a telephonic transfer is an account holder of the drawee branch.
telephonic transfer by passing the following entries :
DEBIT - T.T. Payable Afc.
CREDIT - Payee's Afc
A credit advice should be sent to the payee advising him about credit in his account.
An advice should also be sent to the remitting branch that payee's account has been
credited with the amount of telephonic transfer sent by them.
The date of payment of telephonic transfer and also of sending advice of payment to
remitting branch should be marked in T.T. Payable Register and checked and initialled
by an offIcIaI.
Note :
i) Sometimes the name and the account number of the payee, as advised by
remitting branch may not agree with the name of the account holder and his
account number. It means that the payee is not properly identified. The drawee
branch should not credit the remittance amount to any account. It should send
an urgent telegram to the issuing branch requesting them to repeat the name
of the payee and particulars of his account to which T.T. amount is to be credited.
CHAPTER-IV
78
ii) Sometimes telephonic transfer may be received for credit of an account and payee
may not be having account with the drawee branch. In such cases, enquiries
should be made to the extent possible, of other local branches of the bank at
that place whether the beneficiary has an account with them.
1.8 When a telephonic transfer is received with instructions `to advise and pay' and the
payee has no account with the drawee branch, the following procedure should be
followed :-
a) A letter should be sent promptly to the payee advising him that a telephonic
him to collect payment against proper identification and receipt.
b) Whenever the payee calls on the branch, he should be issued a telephonic transfer
receipt in Form B.16 after filling all the particulars therein in original as well as
duplicate copy. The name and address of the payee should be written at the
top and initialled by the concerned offIcIaI.
Note :-In the Form B-16, in the fourth line the word ``Telegraphic'' before the
word ``Transfer'' should be struck of and the word ``Telephonic'' should be added.
The correction should be authenticated by the beneficiary.
c) The payee may collect payment of telephonic transfer either through his banker
or on counter in cash. Both the Receipts (original and the duplicate) should be
returned to the bank with the payee's discharge on both of them. (Discharge
on original should be on a revenue stamp)
Cash payment for a telephonic transfer should be made only against proper
identification. Whenever the payment is made through clearing, the Receipt should
bear the banker's certificate confirming the discharge of the payee or certifying
that the payee's account has been or will be credited.
It should be noted that whenever payment is made of telephonic transfer through
another bank, mere certificate of the collecting bank on T.T. Receipt for having
credited the payee's account with them is not sufficient. The Receipt must bear
the discharge of the payee. It should therefore be seen that both the Receipts
(original as well as duplicate) have been signed by beneficiary whether paid on
counter or through clearing.
Note : T.T. Receipt is not a negotiable instrument. The payee therefore cannot
endorse it in favour of another person. the payment must be received by the
payee himself or by his banker.
In case the payee wants the payment to be made to one of his agentsfemployees
the Receipt must be discharged by the payee himself and a request should be
made by him in a covering letter to the bank to make payment to such agent
or employee. The signature of such agentfemployee should be appended to such
letter and verified by the payee.
CHAPTER-IV
79
In case payment of T.T. is to be effected to authorised person in the manner
described above, it should be ensured that this facility is extended to the bank's
valued customers only and :
i) The signatures of the beneficiary on the T.T. Receipt in discharge thereof
are very carefully verified;
ii) Proper and satisfactory identification of the person receiving the payment
is obtained.
d) The following entries should be passed-
CREDIT - CashfClearing Afc.
There is no need to prepare a debit voucher, but original T.T. Receipt (Form B-
16) itself will serve the purpose of debit voucher of T.T. Payable.
e) The date of payment of telephonic transfer should be marked in T.T. Payable
Register and checked and initialled by an offIcIaI.
f) The duplicate T.T. Receipt should be sent to drawing branch under a covering
letter in form No. B-1SA. The date of sending duplicate receipt to drawing branch
should be marked in T.T. Payable Register.
1.9 The drawee branch should watch for the telegram confirming the telephone message
and if it is not received on the day following the day on which the message was
received it should send an urgent telegram asking for confirmation of the message.
The confirmatory telegram when received should be decoded with the help of Bank's
Private and Confidential Code and Bentley's Code. The receipt of telegram should be
recorded in :-
a) T.T. Payable Register.
b) Register of Inward Telegrams.
The text of the telegram should be compared with the message received over phone
and noted in Regsiter of Inward Telegram and with particulars in T.T. Payable Register.
In case of a discrepancy, the matter should be immediately taken up with drawing
branch and clarification obtained. Nail confirmation of the telegram on Form G-38A
should be carefully watched and its receipt recorded in T.T. Payable Register and
Register of Inward Telegrams. Nessage contained in mail confirmation should be
compared with message noted in T.T. Payable Register and Register of Inward Telegram.
Note : Care should be taken to see that on receipt of confirmatory telegram of
telephonic transfer, payment is not made to payee twice.
1.10 Nail Confirmation of telegram on form G-38 should be prepared and sent to drawing
branch. The mail confirmation should carry the message in plain language and signed
CHAPTER-IV
80
by two authorised offIcIaIs. It should be despatched on the day on which relative
T.T. has been received.
1.11 The drawee branch should watch that it receives drawing advice and IBCN in respect
of T.T. Paid from the drawing branch without any delay. In case such advice and IBCN
is not received on the expected day i.e. allowing for the normal time taken by mail,
telegram about such non-receipt should be sent to branch concerned.
1.12 On receipt of IBCN in reimbursement, the follwoing entries should be passed :-
DEBIT
-
Head Office Afc.
CREDIT - IBCN Paid Afc
2. TELEPHONIC TRANSFERS REMAINING UNPAID FOR THREE YEARS
2.1 Telephonic Transfers issued by our branches which remain unpaid for three years should
be transferred to Head Office after annual closing of accounts on 31st March. The
transfer should be effected positively in the first week of May every year. In practice,
there will hardly be an occasion to transfer an outstanding telephonic transfer to Head
Office.
2.2 The drawee branch while advising transfer of amounts of such telephonic transfers
remaining unpaid should furnish the following particulars to Head Office.
i) Name of Drawing Branch
ii) Date of Telephonic Transfer
iii) Name of Beneficiary and Address (if known)
iv) Name of Applicant and Address (if known)
v) Amount
vi) Reason for Non-payment (if any)
CREDIT - Head Office Afc.
2.+ Date of transfer should be marked against relative entries in T.T. Payable Register with
a remark Àmount Transferred to Head Office'.
2.S For the transfer of such telephonic transfer, the branches should make use of Form
ACT 27. The forms are in duplicate bound book. The original perforated form when
duly filled in should be detached and sent to Head Office. The duplicate copy should
not be detached as it would serve the purpose of the supporting statement for the
CHAPTER-IV
81
purpose in the duplicate form. This rectangular space in the original form should be
2.6 If later any claim for telephonic transfer so transferred to Head Office arises, the same
should be submitted to Head Office with full particulars, cause of delay and such
connected matters together with recommendations for consideration of Head Office.
The date on which the amount was transferred to Head Office should also be
communicated to Head Office.
noted in the column `Date of Payment' against the appropriate item in the duplicate
form (ACT 27) remaining in the Register.
3. BALANCING
3.1 The T.T. Payable Afc should be balanced every month. Normally no balance should
remain in T.T. Payable Afc.
CHAPTER-IV
82
CHAPTER V
ELECTRONIC FUND TRANSFER
1. ProceduraI GuIdeIInes for EIectronIc Funds Transfer
Funds transfer through electronic communication has been introduced. The procedure to be
followed by branches for Electronic Funds Transfer is given below.
Reserve Bank of India has introduced a system of computers and communication network
for funds transfer operation whereby funds transfers take place between select centers by
transmission of electronic signals. The system is named as RBI Electronic Funds Transfer
System (RBI EFT System). The system facilitates an efficient, secure, economical, reliable
and expeditious system of funds transfer and clearing in the banking sector in India and
relieves the stress on existing paper based funds transfer and clearing system.
1.1 EIIgIbIIIty :
Any person desirous of availing the EFT facility must have a SBfCurrentfCash-Credit
account at the branch. The EFT must be issued only to the debit of the account
designated by the customer for this purpose. The designated account must be at least
six months old.
1.2 DocumentatIon :
The EFT AppIIcatIon form FT-2A {Annexure-I) wIII suffIce for the present.
However, branches wIII be requIred to carry out separate documentatIon such
as EFT Agreement on Form FT-2B {Annexure-II) {after enactment of RBI EFT
ReguIatIons).
1.3 Quantum of remIttance :
value of each EFT transaction should be in whole rupee only, and the upper limit
was Rs. 2.00 (two) Crores. There is no per transaction limit with effect from 1.11.200+
2. Procedure for InItIatIng EFT transactIon-outward :
1. Customer will submit EFT-Application Form (Payment-order) Form FT-2A (Annexure-I)
in duplicate, both OrIgInaI and the OffIce Copy duly filled in, including service charge
and service tax to be advised by branch (presently at same rate as demand Drafts)
and duly authenticated on the OrIgInaI as weII as the OffIce Copy.
2. The cut-off time, as advised by the Service Branch, should be adhered to while
accepting payment-orders from customers. Time of receipt of the application should
be duly noted by the receiving branch-official in the designatged space on the FT-2A.
3. A cheque favouring the Bank for like amount drawn on the designated account will
accompany the FT-2A and particulars of the cheque will be filled in by the applicant
on the FT-2A.
CHAPTER-V
83
+. Before accepting the application, the branch will verify, from the list to be furnished
by the Service Branch, that (a) the destination branch of the beneficiary bank is situated
in one of the identified EFT Centres, and (b) the beneficiary bank is duly admitted as
a participant in the RBI EFT-Scheme. In case of discrepancy in this regard, the
application will be re]ected.
S. The payment-order will not be accepted if :
a) the funds available in the account of the customer are not adequate or properly
applicable to comply with the payment-order and the customer has not made
any other arrangement to meet the payment obligation.
b) the payment-order is incomplete or it is not issued in the agreed form.
c) the payment-order is attached with notice of special circumsatances.
d) the Bank has reasons to believe that the payment-order is issued to carry out
an unlawful transaction.
e) the payment order cannot be executed under the RBI EFT System due to any
other reason.
6. No payment-order shall be binding on the branch until the Bank has accepted it and
issued the counter-foil of the payment-order to the customer.
7. No payment-order should be executed by the Bank without complying with the security
procedure.
8. Once the payment-order is submitted and accepted by the branch, no revocation is
permissible unless :
a) the notice of revocation is received by the branch before execution of the
payment-order.
b) the notice of revocation is in compliance with the security procedure.
9. After careful scrutiny of the original and office-copy of EFT-Application on Form FT-2A
and the accompanying cheque and duly verifying the signature of the customer on
the original as well as office-copy of the FT-2A and the accompanying cheque, the
authorised officials of the branch will sign the same and return the original counterfoil
to the customer in token of acceptance of the payment-order.
3. Procedure for executIng the EFT transactIon Outward :
3.1 The cheque submitted against each EFT payment-order FT-2A for the full amount i.e.
amount to be remitted plus normal service charge @ D.D. commission plus RBI charge
Rs. S0f- per transactions of Rs. 2 crores and above (waived upto 31.3.2006 for
transactions below Rs. 2.00 crores) and applicable service tax will be debited to
designated account after entries are recorded in the Transfer-Scroll as usual. The office-
copy of the FT-2A will serve as the credit-voucher for EFT-Issued Afc. The accounting
CHAPTER-V
8+
entries will be :
Dr. Designated account of the customer (with the amount of the Cheque)
Cr. EFT - Issued Account (with the amount of FT-2A)
After debiting the designated account, the debit-confirmation should be signed on both
the original and the office-copy of the FT-2A in the space provided after filling up
the other particulars viz. the Transfer Scroll Number and the date of transfer.
3.2 The FT-2A should be entered in the EFT-Scroll FT-2C {Annexure-III). This scroll is
to be prepared in duplicate and the office-copy remaining with the branch will be
carefully preserved to serve the purpose of a Register for the branch. The scroll
numbers should begin from 1 (one) everyday and continue unbroken till day-end e.g.
Scroll Number 1 to S sent in first clearing, 6 to 9 sent in second clearing and 10 to
12 sent in third clearing. If more than one scroll-sheet is necessary for one lot (say
3 scroll-sheets are used), each scroll-sheet should be suitably marked (as 1 of 3, 2
of 3 and 3 of 3) to identify each scroll-sheet. The starting scroll-number and end
scroll-number should be shown on the last scroll-sheet. The scroll-number allotted to
a particular EFT-transaction, the date of Scroll and the date of sending the Scroll will
be entered in the designated space on the original as well as the office-copy of the
FT-2A, and duly signed. CIear IegIbIIIty of OffIce-CopIes of FT-2A and FT-2C must
be ensured.
3.3 All the particulars of outward EFTs will be duly filled-in on FT-2C except for the last
column (`Àcknowledgement received on'') which will be filled-in only after receipt of
the report regarding acceptancefrejectIon {say, because the destInatIon bank
branch fInds that the name and account no. dIffer) of the remittance from the
Service Branch. The information will be provided by Service Branch on Report-Form
EFTR-S {Annexure-V) within 3 days from the date of remittance.
3.+ If, in the EFTR-S report subsequently received from the Service Branch, the branch is
advised that a particular remittance has been re]ected by the destination bank branch,
the branch will pass the following accounting entries.
Dr. Service Branch Afc with the re]ected EFT - amount
Cr. Cusotmer's designated Afc.
3.S The EFTR-S will thereafter be carefully preserved along with the relative FT-2C.
4. Procedure for executIng the EFT transactIon - Inward :
+.1 The branch will receive from Service Branch, advice of inward EFT - remittances on
Report-Form EFTR-+ {Annexure-IV) in duplicate. If the branch has received such
inward EFT-remittances, the acceptancefre]ection by the branch (say, because name
and account no. differ) of such inward remittances must be reported by the branch
back to Service Branch so that each sending bank branch may in turn be informed of
the fate of the remittance. For this purpose, the branch will enter the remark `Àccepted''
or ``Re]ected'' in the last column against each item in the EFTR-+, in the original as
well as in the duplicate.
CHAPTER-V
8S
+.2 Inward remittances as per EFTR-+ received by the branch and accepted by it will be
credited to the respective accounts of the beneficiaries. Thereafter, the original EFTR-
+ will be carefully preserved along with the relative FT-2C.
+.3 When the branch has re]ected a particular inward remittance, the amount will be
credited back by a separate voucher to Service Branch. No nettIng shouId be done.
+.+ Following entries are to be passed :
Dr. Service Branch Afc with the total amount of all remittances reported in EFTR-+.
Cr. Respective accounts of the beneficiaries for all accepted items.
Cr. Service Branch Afc - for re]ected items
+.S The particulars of acceptancefre]ection will be entered in the space provided on
FT-2C.
Thus the FT-2C wIII contaIn the amount of outward remIttance made by the
branch, the RBI charges Rs. 5J- per transactIons of Rs. 2. crores and
above {waIved uptIII 31.3.26 for transactIons beIow Rs. 2. crores)
reaIIsed from the customer, and the rejected Inward remIttances, If any,
beIng refunded by the branch. The totaI amount of the FT-2C Is to be
credIted to ServIce Branch AJc. The desIgnated space showIng break-up of
the amount of both FT-2A and FT-2C wIII be fIIIed In.
5.
Despatch of FT-2C to ServIce Branch :
The original FT-2C along with the original FT-2As, all duly and completely filled in and signed
and the duplicate of the relative EFTR-+ should be forwarded to the Service Branch.
6. AccountIng EntrIes :
Dr. EFT Issued Afc with the total balance of FT-2A(s) received.
Cr. Service Branch Afc with the total amount of FT-2C viz. (a) Outward remittance amount,
(b) RBI charge, and (c) Re]ected inward remittances refunded to Service Branch.
Cr. Exchange and Commission (EFT) Afc with the total amount of commission including
service tax of EFT.
The accounting entries are illustrated in Annexure-vI.
N.B. : 1. The EFT Issued account will be reversed on the Same day.
2. On subsequent receipt of EFTR-S from Service Branch, the `Àcknowledgement''
column of relative FT-2C will be duly filled in. For the remittances confirmed
through EFTR-S, applicants should be advised as per format given in Annexure-
vII. FT-2C and relative EFTR-v will be preserved together.
CHAPTER-V
86
7. SendIng of NIL Statement :
If there is no EFT transaction on a particular day, the branch will send a NIL Statement to
the Service Branch.
8. ReconcIIIatIon :
The transactions in the Service Branch - EFT AfC will consist of the following :
a) Credits corresponding to FT-2C sent to Service Branch.
b) Debits corresponding to EFTR-+ received from the Service Branch.
c) Debit corresponding to EFTR-S (re]ected items) received from the Service Branch.
The daily reconciliation and balance transfer procedure as existing now will be meticulously
followed with the existing daily statement modified to include EFT as given in Annexure-
vIII.
9. RoIe of the ServIce Branch :
The Service Branches located at centers where EFT facility is provided by R.B.I. will carry
out the EFT functions strictly in accordance with the detailed guidelines provided to them
by R.B.I. Such Service Branch will convey to the branches within its clearing zone under
advice to the respective Regional Office the instructions, if any, received by it from R.B.I.
in regard to EFT. The service Branch will ensure the accuracy of the contents of EFT data
file and the authenticity of the payment orders contained therein as received by the EFT
Center in compliance with the Security Procedure. It will carry out the settlement of all
payment obligations and ensure execution of the EFT data file after complying with the
Security Procedure and time schedule, duly satisfying that the balance in its settlement
account is adequate to cover its settlement obligation and ceiling, if any, is not exceeded
and requirement of collateral, if specified by R.B.I. is adequate. It will receive NCC data
file from the receiving EFT Center in compliance with the Security Procedure. It will process
the NCC data file from the receiving EFT Center in compliance with the Security Procedure
and sort out the payment orders branch wise, and transmit to the respective branches the
payment orders in accordance with the time schedule and in compliance with the Security
Procedure. It will generate, dispatch and maintain records of transactions in accordance with
procedure specified by R.B.I.
10. RoIe of the RegIonaI Head :
For Regions having Service Branches located at centers where EFT facility is provided by
R.B.I. the Regional Head will take steps to popularise EFT, keeping in mind the superiority
of the system over the conventional modes of remittance, particularly in view of increasing
incidence of fraud in remittance by way of Demand Drafts. The Regional Head will also
ensure that branches comply with instructions of R.B.I. received and conveyed to them by
the concerned Service Branch.
11. Service charges as applicable from time to time are to be levied on transactions involving
debit of the account for the purpose of funds transfer.
CHAPTER-V
87
12. ReportIng System:
The Service Branch will report on a fortnightly basis, along with ACT-1, the volume of EFT
transactions in the following proforma, to the respective Regional Office, for onward
transmission to Head Office, NIS Task Force where consolidation will be done for feeding
user department. DIT will develop a software package for this purpose.
EFT TransactIons Number of transactIons Amount
INWARD
OUTWARD
13. LIst of EFT Centres :
RBI Centres where EFT Facility is presently available are listed below :
1. Ahmedabad, 2 Bangalore, 3. Bhubaneswar, +. Chandigarh, S. Chennai, 6. Guwahati,
7. Hyderabad, 8. Jai pur, 9. Kol kata, 10. Numbai , 11. Nagpur, 12. New Del hi ,
13. Thiruvananthapuram, 1+. Patna, and 1S. Kanpur.
1+. PenaI Charges for deIayed credIt
Branches should afford credit to the beneficiary's account on the same day of the settlement
- i.e. on the date of credit of their account with the settlement bank (RBI or SBI as the
case may be). It is to be borne in mind that delayed credits to the beneficiary defeats the
very purpose of this facility. In case of delayed credit the customer has to be compensated
by the beneficiary bank. AccordIngIy for any deIay In credIt to the customer's account
beyond T+1 day, the branch shouId compensate the customer at the same rate
as for deIays In credIt of cheques coIIected by the branch.
CHAPTER-V
Branch .......................
Form FT-2A
Sr. No. .......................................................
Date ..........................................................
Received from ............................................
..................................................................
By ChequefTransfer for E.F.T. on
................................................. Centre
favouring ...................................................
..................................................................
Bank .................... Branch ..........................
Afc. No. .....................................................
Amount
Rs. .............................................................
Charges
Rs. .............................................................
Total Rs. ....................................................
(Rupees .....................................................
...................................................................)
RemIttance wouId be effected as per
RBI's EFT Scheme. Terms of remIttance
are on the reverse.
...................................................................
Authorised Signatory
UCO BANK
FORM FT - 2A ANNEXURE-I
OFFJCE COPY
FOR SINGLE TRANSACTION ONLY
Sr. No. ................. Date : ........................
ELECTRONIC FUNDS TRANSFER APPLICATION FORM
(To be filled in by the Applicant in Block Letters)
Details of Applicant (Remitter) :
(1) Title of Account : .........................................................
(2) Account No. ........................................................... Type of Account : SavingsfCurrentfCash Credit
Detials of Beneficiary :
(1) Centre : ............................................. (2) Bank ................................ (3) Branch ..............................
(+) Beneficiary Name : ......................................................................................... (S) Account No. ......................
(6) Type of Afc. : SavingsfCurrentfCash Credit
Amount to be remitted : Rs. ............................. Bank Charges : Rs. ................................ Total Rs. ...............................
(Rupees ............................................................................................................................................................ only)
Remit the amount as per above details by debiting myfour account for the amount of remittance plus your charges.
IfWe enclose Cheque No. .......................... dated ....................... favouring yourselves for the above purpose.
IfWe agree to the terms and conditions printed on the reverse hereof.
Strike off which is not applicable
....................................
Customer's Signature
FOR BANK'S USE ONLY
Dr. EFT Issued Afc Rs. Cr. Service Branch Afc (Remittance Amt.) Rs.
Less : Branch charge Rs. Cr. Service Branch Afc. (R.B.I. Charge) Rs.
Balance Rs. Total (Credited to Service Branch Afc.) Rs.
Rupees in words : ......................................................................................................................................................
Counter Signed (With P.F. No.) Passing Authority (With P.F. No.)
Time of receipt ........................................................ Entered in EFT Scroll (FT-2C). Date of FT-2C ....................
Applicant's designated Afc. debited EFT Scroll No. ......................................
Date of Transfer ....................................................... FT-2C sent on .......................................
Transfer Scroll No. ....................................................
Authorised Signatory Authorised Signatory
UCO BANK
Branch .............................
88
CHAPTER-V
TERMS & CONDITIONS OF TRANSFER
1. The customer shall be responsible for the accuracy of the particulars given in the payment order issued by him and shall be liable to compensate the Bank
for any loss arising on account of any error in his payment order.
2. The customer shall ensure availability of funds in his account properly applicable to the payment order by the Bank. Where, however, the Bank executed
the payment order without properly applicable funds being available in the customer's account, the customer shall be bound to pay to the Bank the
amount debited to his account for which EFT was executed by the Bank pursuant to his payment order, together with the charges including interest
payable to the Bank.
3. The customer hereby authorises the Bank to debit to his account any liability incurred by him to the Bank for execution by the Bank of any payment order
issued by him.
+. The customer agrees that the payment order shall become irrevocable when it is executed by the Bank.
S. No payment order issued by the customer shall be binding on the Bank until the Bank has accepted it and issued the counterfoil of the payment order to
the customer.
6. Remitting Bank shall not be liable for any loss or damage arising or resulting from delay in transmission delivery or non-delivery of Electronic message or
any mistake, omission, or error in transmission or delivery thereof or in deciphering the message from any cause whatsoever or from its misinterpretation
received or the action of the destination Bank or any act or every beyond control.
7. All payment instructions should be checked carefully by the remitter.
8. Nessages received after cut-off time will be sent on the next working day.
89
CHAPTER-V
90
ANNEXURE-II
FT-2B
UCO BANK
.................................... Branch
RBI EFT System
Customer Agreement
Name of the Customer :
Address for communication in regard to EFT :
Particulars of Accounts designated for EFT :
TERMS AND CONDITIONS OF EFT EXECUTED IN THE RBI EFT SYSTEM
IfWe amfare desirous of availing the Electronic Funds Transfer Facility through the RBI EFT
System in consideration of the Bank agreeing to extend to mefus the said EFT facility. IfWe
hereby agree to and undertake the following terms and conditions.
1. DefInItIons
(i) ``Customer'' means the person named here-inabove who has executed this Agreement.
(ii) ``Bank means UCO Bank, a body corporate constituted under Banking Companies
(Acquistion and Transfer of Undertakings) Act, 1970 as amended by Banking Laws
(Amendment) Act, 198S having its head office at 10, B.T.N. Sarani, Kolkata and Branch
at ..................................
(iii) `ÈFT Facility'' means the Electronic Funds Transfer Facility through the RBI EFT System.
(iv) ``Security Procedure'' means a procedure established by agreement between the bank
and the customer for the purpose of verifying that the payment order or communication
amending or canceling a payment order transmitted electronically is that of the customer
or for detecting error in the transmission for the content of the payment order or
communication. A security procedure may require the use of algorithms or other codes,
identifying words or numbers, encryption, call back procedures, or similar security
devices.
(v) Words or expressions used in this Agreement, but not specifically defined herein shall
have the respective meanings assigned to them in the RBI EFT Regulation, 1996.
2. Scope of the Agreement
1) This Agreement shall govern every payment order issued by the customer during the
period of validity of the Agreement.
2) This Agreement shall be in addition to and not in derogation of the RBI EFT Regulation,
1996. The customer has gone through and understood the RBI (EFT System)
Regulation, 1996 and agrees that the rights and obligations provided therein so far as
CHAPTER-V
91
it relates to the originator shall be binding on himfthem in regard to every payment
order issued by himfthem for execution in the EFT System.
3) The customer understands and agrees that nothing in this Agreement shall be construed
as creating any contractual or other rights against the Reserve Bank or any participant
in the EFT System other than the Bank.
3. Commencement and TermInatIon
1) This Agreement shall come into force as soon as a security procedure is established
by mutual agreement between the bank and the customer.
2) The Agreement shall remain valid until it is replaced by another agreement or
terminated by either party or the account is closed, whichever is earlier.
3) Either party to this Agreement may terminate this Agreement by giving one month's
notice in writing to the other party. Notwithstanding the termination of the Agreement
the parties to the Agreement shall be bound by all transactions between them in regard
to EFT Facility availed of by the customer, before the termination of the Agreement.
4. SecurIty Procedure
1) For the purpose of the agreement for security procedure, the bank may form one or
more or a combination of one or more security device.
2) A security procedure once established by Agreement shall remain valid until it is changed
by mutual agreement.
5. RIghts and obIIgatIons of customers
1) The customer shall be entitled, sub]ect to other terms and conditions in the Regulations
and this Agreement to issue payment orders for execution by the bank.
2) Payment order shall be issued by the customer in the form annexed hereto, complete
in all particulars. The customer shall be responsibile for the accuracy of the particulars
given in the payment order issued by him and shall be liable to compensate the bank
3) The customer shall be bound by any payment order executed by the bank if the bank
had executed the payment order in good faith and in compliance with the security
procedure. Provided that the customer shall not be bound by any payment order
executed by the bank if he proves that the payment order was not issued by him
and that it was caused either by negligence or a fradulent act of any employee of
the bank.
+) The customer shall ensure availability of funds in his account properly applicable to
the payment order before the execution of the payment order by the bank. Where,
however, the bank executes the payment order without properly applicable funds being
available in the customer's account the customer shall be bound to pay to the bank
the amount debited to his account for which an EFT was executed by the bank
CHAPTER-V
92
pursuant to his payment order, together with the charges including interest payable to
the bank.
S) The customer hereby authorises the bank to debit to his account any liability incurred
by him to the bank for execution by the bank of any payment order issued by him.
6) Customer agrees that the payment order shall become irrevocable when it is executed
by bank.
7) Customer agrees that the bank is not bound by any notice of revocation unless it is
in compliance with the security procedure.
8) Customer agrees that he shall not be entitled to make any claim against any party in
the RBI EFT System except the bank.
9) Customer agrees that in the event of any delay in the completion of the Funds Transfer
or any loss on account of error in the execution of the Funds Transfer pursuant to a
payment order, the bank's liability shall be limited to the extent of payment of interest
at the Bank Rate for any period of delay in the case of delayed payment and refund
of the amount together with interest at the Bank Rate upto the date of refund in the
event of loss on account of error, negligence or fraud on the part of any employee
of the Bank.
10) Customer agrees that no special circumstances shall attach to any payment order
executed under the EFT Facility under this Agreement and under no circumstances
customer shall be entitled to claim any compensation in excess of that which is provided
in clause (9) above, for any breach of contract or otherwise.
6. RIghts and obIIgatIons of the bank
1. The Bank shall execute a payment order issued by the customer duly authenticated
by him as verified by the security procedure, unless :
a) The funds available in the account of the customer are not adequate or properly
applicable to comply with the payment order and the customer has not made
any other arrangement to meet the payment obligation.
b) The payment order is incomplete or it is not issued in the agreed form.
c) The payment order is attached with notice of any special circumstances.
d) The bank has reason to believe that the payment order is issued to carry out
an unlawful transaction.
e) The payment order cannot be executed under the RBI EFT System.
2. No payment order issued by the customer shall not be binding on the bank until the
bank has accepted it.
3. The bank shall, upon execution of every payment order, be entitled to debit the
designated account of the customer, the amount of the funds transferred together with
CHAPTER-V
93
charges payable thereon, whether or not the account has sufficient balance.
+. If the funds transfer is not complete before the close of business of the third day
following EFT business day the bank shall advise the customer.
S. The bank shall issue to him a duly authenticated record of the transaction after
completion of the funds transfer and also issue at the end of each month a statement
of account. The customer shall, within a period of two days from the date of receipt
of the record of transaction or as the case may be within the period of ten days
from the date of receipt of the monthly statement report to the bank any discrepancy
in the execution of the payment order. The customer agrees that he shall not be
entitled to dispute the correctness of the execution of the payment order or the amount
debited to his account if he fails to report the discrepancy within the said period days.
Date : ........................... 5Igna!uI / !n Cus!mI
CHAPTER-V
FOR BANK'S USE ONLY ANNEXURE-III
R.B.I. EFT SYSTEN FORM FT-2C
EFT SCROLL
ORJGJAAI / OOPIJCATE
UCO BANK
ALPHA CODE NO. NUNERIC CODE NO. D D N N Y Y Y Y
Branch .................................................................
Region .................................................................
Starting Scroll No. ..................... End Scroll No. ......................
Sender's Details Beneficiary's Detail Destination Details
Remarks
Acknow-
ledgement
Received on
Type
of Afc.
Afc.
No.
NANE
Type
of Afc.
Afc.
No.
NANE
Br.
Code
Branch Bank Center
E.F.T.
Scroll
No.
Amount
TOTAL NO. OF RENITTANCES : TOTAL RENITTANCE ANOUNT:
FIGURES BASED ON EFTR-+
Acknowledgement No. Amount
Particulars
Accepted
Re]ected
Total
TOTAL CREDIT TO SERvICE BRANCH
Particulars Amount
On account of remittances
On account of re]ection
On account of RBI service charge
Total amount credited
The Branch account will be debited by the total of fresh outward and re]ected
acknowledgement transactions.
Prepared by Authorised signatory of Sending Br.
Total Amt. in words Rupees ..................................................................................................................
...........................................................................................................................................................
Enclo. : 1) Original EFT Applications Form (FT 2A) Counter-signature Signature of Authorised
2) Copy of the EFTR-+ Report with acknowledgement remarks (P.F.N. No. Offices (P.F. No.
9+
ANNEXURE-IV
Report EFTR-4
UCO BANK
Name of the ServIce Branch .................................................
ELECTRONIC FUNDS TRANSFER {EFT)
LISTING OF FRESH INWARD TRANSACTIONS
D D N N Y Y Y Y
To : Name of the destination branch ................................................ RBI Code .......................... Date of Listing
H H N N S S
No. of Transactions ......................................... Page No. ........................... Time of Listing
Beneficiaries Destination
branch
remarks
Acceptedf
Re]ected
Remitting Remitter's
Account
Details
Originating
value date
Transac-
tion No.
Processing
Date
Authentication
Position
Amount
in words
Amount in
figures
(Rs.)
Remarks
Account
Details
Name Name Branch Bank
Note : Destination branch should return a copy of this Report indicating `Àccepted'' or ``Re]ected'' against every transactions and signing the same. Amount against the re]ected acknowledge-
ment to be rounded in red.
No. of transactions ......................................................... Total Amount (in figures .................................................. Total amount (in words) .............................................................................
(PFN No. )
9S
ANNEXURE-V
Report EFTR-5
UCO BANK
Name of the ServIce Branch .................................................
ELECTRONIC FUNDS TRANSFER {EFT)
LISTING OF INWARD TRANSACTIONS {OnIy AcknowIedgement)
D D N N Y Y Y Y
To : Name of the destination branch ................................................ RBI Code .......................... Date of Listing
H H N N S S
Page No. ................................ User ID .............................. Branch EFT-Scroll (FT-2C) date .............................. Time of Listing
Destination Remitter's
Bank Branch Name AfC. No.
Acknowledge-
ment Status
(Acceptedf
Re]ected)
Copy
No.
Remarks Amount
Destination
value
date
Destination
Transaction
No.
Reference
Transaction
No.
Authenti-
cation
Position
Reference
Date
Accepted Transactions : Number ..................................................... Amount (in figures) ..................................... Amount (in words) .....................................................
Re]ected Transactions : Number..................................................... Amount (in figures) ..................................... Amount (in words) .....................................................
Total No. of transactions ........................................................ Total Amount (in figures) ............................. Total amount (in words) ......................................................
Note : Total amount of re]ected acknowledgements has been received back by our Bank from the destination Bank(s). The same should be refunded to the remitter.
(PFN No. )
96
97
ExampIe
ANNEXURE-VI
Suppose 10 customers approach the Branch to remit funds through E.F.T. of Rs. 1000f- each
for which our Service Charge is Rs. 1Sf- and R.B.I. commission Rs. Sf- (i.e. 1000f- + 1Sf- + Sf-
= 1020) including service tax.
STEP - I :
Dr. Remitter - 1 Afc. 1020f- Designated Afc. : Current Afc.
Remitter - 2 Afc. 1020f- Designated Afc. : Cash-Credit Afc.
Remitter - 3 Afc. 1020f- Designated Afc. : SB Afc.
Remitter - + Afc. 1020f- Designated Afc. : Current Afc.
Remitter - S Afc. 1020f- Designated Afc. : Current Afc.
Remitter - 6 Afc. 1020f- Desginated Afc. : Cash-Credit Afc.
Remitter - 7 Afc. 1020f- Designated Afc. : Cash-Credit Afc.
Remitter - 8 Afc. 1020f- Designated Afc. : Current Afc.
Remitter - 9 Afc. 1020f- Designated Afc. : Current Afc.
Remitter - 10 Afc. 1020f- Desingated Afc. : SB Afc.
Cr. EFT Issued Afc. 10200f-
On the same day Branch received EFTR-+ (in duplicate) for crediting Rs. 6000f- to 3. S.B.
Afc. of 3 customers for Rs. 2000f- each mentioned there and on scrutiny it was found in one
case Name and AJc. No. dIffers.
Dr. Service Br. Afc. 6000f-
Cr. Customer-1 S.B. Afc. 2000f-
Customer-2 S.B. Afc. 2000f-
Service Br. Afc. 2000f- (name and Afc. no. differ)
EFT Scroll FT-2C will cover the amount of outward 10 no. EFTs Rs. 10,0S0f- (including RBI
Charge) and the re]ected inward EFT for Rs. 2000f- as above.
STEP-II :
Dr. EFT Issued Afc. 10200f-
Dr. Service Br. Afc. 2000f-
Cr. Service Br. Afc. 120S0f- *
Cr. Exchange & Commission 1S0f- including service tax.
* (Remittance Amt. + RBI Service Charge + amount of re]ected inward EFT)
Note : RBI service charge Rs. S0f- per transaction of Rs. 2.00 crores and above (waived uptill
31.03.2006 for transactions below Rs. 2.00 crores).
CHAPTER-V
98
Branch has to send FT. 2C with one copy each of FT. 2A & EFTR-+ duly filled in to Service
Branch along with the Credit Advice for Rs. 120S0f-.
RespondIng to EFTR-5 : Suppose out of the 10 nos. of remittance sent on Day-1, one particular
remittance (Say remittance No. 3) was re]ected by the destination Bank branch for some reason
as reported through EFTR-S received from Service Branch on Day-3. The amount of this remittance
is to be refunded to the concerned customer (his designated S.B. Afc. is to be credited).
Dr. Service Branch Afc. 1000f-
Cr. S.B. Afc. of Remitter - 3 1000f-
CHAPTER-V
99
ANNEXURE-VII
UCO BANK
Branch .................................
Date ...............................
ELECTRONIC FUNDS TRANSFER
CONFIRMATION
EFT Serial No. ................................................
Date of EFT....................................
Received from ................................................
By Cheque for E.F.T. on ....................................................................................... Centre
favouring ....................................................................................
``Bank ................................................ Branch ................................................
Afc. No. ................................................ Amount Rs. ................................................
Rupees (in words) ........................................................................................................................
................................................................................................
The payment is made to the Beneficiary's Afc. as mentioned above on .....................................
............f............f............
Date Authorised Signatory
CHAPTER-V
100
UCO BANK
ANNEXURE-VIII
DaIIy ReconcIIIatIon Statement
{PIease submIt In DupIIcate)
From : To :
Branch Name ........................................ The Chief Nanager
Code No. .............................................. UCO BANK
Name of Person Service Branch
to be contacted ....................................
Phone No. ............................................
Sub : ReconcIIIatIon of CIearIng TransactIons Dated ...........................
We furnish hereunder the information in respect of the transactions made during the day
for quick and speedy day to day reconciliation with you as well as with R.B.I.
STATEMENT OF TRANSACTIONS WITH YOU AS ON .................................
Opening GL Balance (Dr.fCr.)
PARTICULARS TOTAL AMOUNT
DEBIT CREDIT
1. NICR Outward Clearing
(sent on ..................)
2. NICR Outward Return
3. NICR Inward Clearing
+. NICR Inward Clg. Return
S. ECS Dr.fCr.
6. ECS Return (if any)
7. National Clearing
8. Electronic Fund Transfer (IW)
9. Electronic Fund Transfer (OW)
10. Inter-Bank (OWfIW)
11. Immediate Credit of DD
drawn on Service Branch
12. Any other
TOTAL :
Net position for the day : (Dr.fCr.) Rs. ...................... Closing GL Balance (Dr.fCr.) Rs. ...................
NANAGERfSENIOR NANAGER
(P.F. No. ........................)
Please return the carbonfxerox copy with correction, if any, duly signed with P.F. No. by the
Service Branch authorised official.
CHAPTER-V
101
CHAPTER-VI
SERVICE CHARGES ON REMITTANCES
1.1 The common schedule of service charges presently in force was adopted by Public Sector
Banks in June 198S. Due to continuous escalation in the cost of services provided to
customers, it had become necessary to effect upward revision in the stipulated scale of
charges. This revision has been decided by the committee of Public Sector Banks on service
charges and the revised schedule is in effect from 1.8.2000 which is as under.
1.2 The charges alongwith Taxes and Educational cess, if any, relating to remittances (DDfNTf
TTfEFTfRTGs) is applicable as per the rates determined by Head Office and circulated from
time to time.
NOTE (1) The pay order will be issued to parties within the limits of a centre and they will be
payable within that centre only. Demand Drafts will not be issued which would be
payable at the same centre except for the purpose of payment of fees by studentsf
]ob applications fees and payment of Govt. dues. Commission collected for these local
DDs would be as applicable to Pay Orders.
(2) A higher rate, as prescribed by Head Office from time to time, may be recovered for
remittance against tender of cash. A higher rate of 2S should also be recovered
from account holders who are using their accounts as conduit (Channel) for making
remittances and a ma]ority of credits in the account are by way of cash deposit for
the purpose of remittance.
(C) ISSUE OF DUPLICATE DRAFTSfPAY ORDERS :
Amount Issue Charges
w.e.f. 01.0+.200+
1. Up to Rs. S,000f- Rs. 2Sf- per Instrument Changes made by HO from time to
2. Above Rs. S,000f- Rs. 2Sf- per Instrument
)
time may be followed.
(D) CANCELLATION OF DDfPay Order : As advised by Head Office from time to time
(E) RENITTANCES THROUGH OTHER BANKS
Existing agency agreements between banks including private sector banks to continue.
(F) TTs DISCOUNTED FOR OTHER BANKS
i) Commission - @ S paise per Rs. 100f- (Changes made by HO from time to
time may be followed)
ii) Overdue interest - 2S paise per Rs. 100f- per day from next day to date of
disbursement.
Overdue interest is to be calculated from the date next to the date of negotiation upto
CHAPTER-V
102
and including the date of payment. Overdue interest need not be taken for the date of
reimbursement, provided reimbursement is made before the stipulated time for acceptance
of cheque for clearing.
(G) ACCOUNTS OF CO-OPERATIvE BANKS :
i) Concession @S0 of the usual service charges may be extended to Co-operative banks
which maintain their accounts with us for issue of DDs, TTs and NTs.
ii) In case of transfer of funds from one account of Co-operative Bank at one centre to
that of another centre, the charges will be as under :
a) For amount upto Rs. S,000 3 paise percent with minimum of 2S paise
b) For amount over Rs. S000 2 paise percent with minimum of Rs. 1.S0
NOTE : Urban Co-operative Banks should give an undertaking at their Head Office level
that they would charge their customers the same charges as the public sector banks
are charging for issue of Demand Drafts.
(H) Accounts of Regional Rural Banks
Keeping in view that RRBs are low cost institutions catering to the weaker sections, the
schedule of service charge for different transactions should be as under :
a) Remittances or transfer of funds between Head Office and branch of RRB - At par
b) Remittance of refinance instalments by RRB to NABARD - At par
(I) PostalfTelegraphfTelecom Charges : Actual Charges incurred
The applicable trariff should be as under :
i) Oridnary post - Free
ii) Registered post - Actual charge incurred.
iii) Telegram Charge - Actual charge incurred.
iv) Fax Nessage from Bank's Nachine - Rs. S0f- per message.
v) E-Nail Nessage from Bank's Computer Rs. 30f- per message.
FOR TELEGRAPHICfTELEPHONICfTELEX TRANSFERS ACTUAL CHARGES ARE TO BE
RECOvERED IN ADDITION TO SERvICE CHARGES.
1.3 ExemptIons
The following type of customers will be allowed remittance at par.
HOWEvER, OUT-OF-POCKET EXPENSES AND ACTUAL POSTAGEfTELEGRANfTELEPHONEfFAXf
E-NAIL CHARGES ARE TO BE RECOvERED.
1) ReligiousfWelfare ServicesfCharitable Institutions registered under Sec 10 of Income Tax
Act, on production of such certificate which should be kept on record.
CHAPTER-VI
103
2) Defence personalfEx-Defence personal and Defence units-Branches should record
documentary evidence in their books of accounts. These concessions are to be allowed
to meet their personal requirements only and not for businessfgainful vocations. This
concession will apply similarly to Para-military forces viz; BSF, CRPF, ITBP, etc.
Also free remittance facility for contribution by members of the public to the Army
Central Welfare Fund, the National Defence Fund and other related funds.
3) Blind, physically handicapped individuals identified as such at the time of opening of
accounts and not against cash payment. Branch Nanager should confirm the same on
the ledger folios.
+) The institutions set up for the benefit of blind, and physically handicapped persons.
S) Disbursements under govt. sponsored schemes.
6) Transfer of funds on maturity of deposits as well as remittance of periodical interest
to another branch. However, if funds are transferred to another bank, normal charges
will be recovered by the remitting branch.
7) For remittances under Deferred Payment GuaranteesfBills co-acceptances issued by the
Bank, as these remittances are in respect of Bank's obligations.
8) Remittances to Prime Ninister'sfChief Ninister's Relief Fund.
9) RetiredfEx staff members of our BankfEx staff members of other banks, provided they
fulfil the following criteria.
a) The person should identify himself to the satisfaction of the concerned Branch
Nanager to the extent that he is a retired employee of a particular public sector
bank.
b) The person concerned is not gainfully employed.
c) For ex staff members of other Banks, the facility is allowed if there is no branch
of the Bank with whom he has served at the stationfcentre where facilities are
asked for.
10) Staff members of our Bank.
NOTE : The facilities under Categories 9 & 10 are also available in their ]oint account
with close relatives.
11) Transactions made by Govt. Departments:
The following two Govt. Deptt. are accredited to us i.e. our Bank is acting as official
banker to these two departments and hence no service charges are to be recovered
on the transactions from these Departments. However, out of pocket expenses are to
be recovered from them.
(I) Geological Survey of India under Ninistry of Nines and
(II) Supreme Court of India, Ninistry of Law and Justice.
Service charges are to be recovered from all other Govt. Departments. However, any request
CHAPTER-VI
10+
for concession in service charges may be forwarded for consideration to Regional Office.
12) Remittance to Students of BITS Pilani for their account at v. v. Pilani Br.
In all such cases, mention of account number of the students maintained at v.v. Pilani Br.
on the DD & TT is essential and the same should be obtained from the parentfremitter.
(Out of pocket exp. to be recovered)
13) Conditional waivers of service charge for following selective categories of customers.
(i) Rural branches may allow ex-servicemenfsenior citizensfpensioners maintaining
superannuation benefits of Rs. 2S000f- and above with the branch, free collection
of outstation cheques up to Rs. S000f- representing their pension.
(ii) A senior citizen maintaining average balance of Rs. 10000f- in his SB Afc with
any of our branches may, to the debit of his SB account, remit funds free of
charge for credit to his account at any of our other branches in India.
1+) Branches may issue Demand Drafts in favour of National Foundation for Communal
Harmony, New Delhi without charging any commission from donors who donate the
money to the said foundation, as it is engaged in rehabilitation of children who are
orphaned or rendered destitute in communal, caste, ethnic or terrorist violence.
Note : Branches should refer to the latest circular on Service Charges for the ratesf
chargesfconcessions applicable at that time.
2. INTERNAL POWERS FOR PASSING DEBIT INSTRUMENTSJVOUCHERS FOR PAYMENT
2.1 The guidelines and powers for passing cheques and other debit instruments, relating
to deposit accounts, have been revised and rationalised from time to time and
reproduced in vol. Iv (DEPOSITS) of our Nanual of Instructions.
2.2 In keeping with the spirit underlying the revision of powers relating to deposit afcs,
the powers for passing demand drafts, Telegraphic Transfers, Pay Order etc. have also
been revised upwards and are advised below.
2.3 Naximum Powers available to each Scale of Officers and category of posts to authorise
payment to be made in the absence of funds or advice or without adequate validation
checks available in respect of the amount payable, payee's name etc. would be S0
of the powers exercisable by Officers of that Scale and category of posts for payments
in deposit Afcs. respectively in cash, through clearing and through Transfer. Payment
of DDsfTTsfBills RealisedfDividend WarrentsfInterest WarrantsfLIC chequesfOther Banks'
DDs paid in the absence of fundsfduly authenticated mail advices are examples of
such payments. Similarly, payments of Rupee Traveller's cheques, cheques issued by
Govt. on their accounts (e.g. Bureau of Nines, Geological Survey of India) fall under
this category since these payments are made in anticipation of subsequent
reimbursement and in the absence of mail advice of drawing and of the means of
verification as to the correctness of the amount, the payee's name etc.
2.+ Naximum Powers available to Officers in each Scale and category of posts for payments
to be made where duly authenticated mail advice of drawing has been received or
CHAPTER-VI
10S
funds have been received or adequate validation checks are available would be the
same as the powers exercisable by officers of that Scale and category of posts for
payments in deposit Afcs. Payments coming under this category are payments of TTs
by debit to IBCN Paid accountfOther Bank's DDs payable account, where the relative
Nail Advicesffunds have been already received. Similarly payments to be made against
credit balances in Interest Warrant Afc.fDividend Warrant Afc.fLIC Afc. maintained at
the Branch also pertain to this category. So also do payments of pension and Interest
on Special Deposits as well as refund of compulory Deposits (ITP). Pay Orders too
belong to this category. Since gift cheques do not exceed Rs.S00f- in amount
individually they can all be passed for payment by a Special Asst.fFirst-level Supervising
Officer.
It may be noted that in view of the above delegation of powers, the countersigning
of vouchers to the debit of IBCN Paid would need to be done not by the Nanagerf
Asstt Nanager in terms of volume v of the manual of instructions, but by the Officers
empowered to pass for payment the relative DDs, TTs as per above delegation.
2.S The OfficerfSpl. Asstt. who signs a debit instrumentfvoucher in the first stage of passing
is fully as responsible for the payment as the Officer who signs on it in the final
stage; neither has less nor more responsibility in regard to the payment. Therefore,
each of them has to satisfy himself fully that the payment being authorised is in order
in all respects. The stipulation requiring dual passing of debit instrumentsfvouchers is
laid down as a measure of guarding against the incidence of risk or loss for the Bank
owing to inadvertent error or fraud where the amount involved is large, but not to
lesson the responsibility of the officerfSpl. Asstt. passing in the first stage or to reduce
the work or responsibility of the officer passing the instrumentfvoucher at the final
stage.
2.6 The spirit underlying the structure of powers for passing debit instrumentsfvouchers is
that for large payments, two officers should examine and sign on the instrumentsf
vouchers, and that the larger the amount to be paid the higher is the scalefpost of
the second officer at the Branch passing it at the final stage. Where two or more
officers are posted at a Branch this spirit can and should be observed to the extent
feasible and it should not be diluted where temporarily only one officer is available
for passing instrumentsfvouchers of any amount on account of the other being away
on duty or leave etc. To ensure that quick detection takes place and prompt remedial
action is attempted in case owing to inadvertent error or to fraud a wrong payment
has been made when the only officer available at the Branch has singly passed the
debit instruments for payment, it has been laid down that the second officer should,
on resumption, examine and sign on the instruments signed singly earlier by the only
available officer in excess of his powers. Obviously these signatures of the second
officer should bear the date of actual examination by him and they would denote
only his post facto scrutiny of the payment, but not passing of the instrument by
him for payment. It is believed that the number of occasions calling for subsequent
CHAPTER-VI
106
scrutiny of payments and the number of instruments to be examined on such occasions
may not be very large indeed at most Branches.
2.7 A Chief Nanager in Scale-Iv at a very large or exceptionally large branch and a senior
Nanager in Scale-III in a vL or EL branch would have full power to pass a debit
instrumentfvoucher for any amount in the secondffinal stage.
2.8 Branch Nanager should issue officer Orders vesting in Special Assistants and officers
in various scales and posts at their respective offices, powers to pass various
instruments like DDs, TTs, Dividend warrants etc. not exceeding the levels permitted
herein.
2.9 The powers specified in the chart given hereunder are the maximum powers exercisable
at various levels. Branch Nanagers may at their discretion, issue office orders vesting
lower passing powers.
MAXIMUM INTERNAL PASSING POWERS THAT MAY BE VESTED IN OFFICERSJ
SPECIAL ASSISTANTS FOR PASSING CHEQUES AND OTHER DEBIT
INSTRUMENTS AT BRANCHES IN DEPOSIT ACCOUNTS.
(As per H.O. Circular No. CHOfSUAfS8f98 dated 29.8.98 &
CHOfDEPf16f98-99 Dt. 8.8.98)
Chief Branch Senior Nanager Asstt. Nanager
Nanager in Nanager Nanager (Scale II) (Scale I)
El. Br. (see note (Scale III) (in (In LfvLfEL (In NfLfvLfEL
(Scale-Iv) below) vLfEL Branch) Branch) Branch)
Cash FULL FULL FULL S,00,000 1,00,000
ChequefInstrument
Clg.f& Transfer FULL FULL FULL FULL S,00,000
chequefinstrument
Note: 1) Powers of Special Assistant & other Award Staff holding posts with special allowance
duties are restricted upto as provided in vI Bipartite Settlement. Accordingly, Spl. Asstt.
will exercise power upto Rs20,000 for cash payment and Rs.S0,000 for Clg.ftransfer
chequesfinstrumentsfvouchers as advised in HO circular no. CHOfDEPf12f98-99 Dt. 1S.7.98.
2) These powers are exercisable in Branches and by the officials directly connected with
such transaction. The OfficersfSpl. Asstt. of other deptt. if required to exercise the powers
should do as per order to that effect from the in-charge of the BranchfOffice.
3) Officers in Scale-I & II also act as Supervisory Officer, whenever necessary in a branch,
being first level official for releasing the chequesfinstruments, irrespective of its amount,
by scrutinising the ledger balance and the instrument as required as per rules towards
passing the same for payment after having got it scrutinised by the empowered passing
officer as per rules and after the later countersigned the instrument and initalled the
ledger entry, wherever necessary, for higher amount. Special. Asstt. will also act in the
same manner to release the chequesfinstruments irrespective of the amount.
CHAPTER-VI
107
CHAPTER-VI
+) "Branch Nanager is the no. 1 authority of the branch in this context irrespective of
his designation.
Attention
Notwithstanding such powers as are being vested in officials at different levels, all
debit vouchers in sundry debtors account & sundry creditors account, even if connected
with or relating to transaction of Deposit Account should be counter signed by the in-
charge of the Branch at small, medium & large branches. In case of ELfvL branches,
such vouchers should be countersigned by the Chief Nanager.
MAXIMUM INTERNAL PASSING POWERS THAT MAY BE VESTED IN OFFICERSJ
SPECIAL ASSISTANTS TO PASS DEMAND DRAFTS, TELEGRAPHIC TRANSFERS
ETC. FOR PAYMENT
(I) To pass for payment DDs; and TTs where fundsfmail advices have been received.
(II) To pass for payment the pay orders.
(III) Pension payments.
Chief Branch Senior Nanager Asstt. Nanager Special
Nanager Nanager Nanager (Scale II) (Scale I) Assistants
in El. Br. (see note (Scale III) (In LfvLfEL (In NfLfvLfEL
(Scale-Iv) below) (in vLfEL Branch) Branch)
Branch)
Cash FULL FULL FULL S,00,000 1,00,000 20,000
ChequefInstrument
Clg.f& Transfer FULL FULL FULL FULL S,00,000 S0,000
chequefinstrument
{I) To pass for payment DDs.JTTs, BIIIs reaIIsed, Cheques payabIe on Govt.
Accounts, In absence of fundsJauthentIcated MaII AdvIces,
{II) To pass for payment DIvIdend warrants, Interest warrants, other Bank's
DDs paId, Interest on SpecIaI DeposIt Accounts, ChequesJInstruments
payabIe by specIfIed or aII branches of the bank as per agency arrangement.
Chief Branch Senior Nanager Asstt. Nanager Special
Nanager Nanager Nanager (Scale II) (Scale I) Assistants
in El. Br. (see note (Scale III) (In LfvLfEL (In NfLfvLfEL
(Scale-Iv) below) (in vLfEL Branch) Branch)
Branch)
Cash FULL FULL FULL 2,S0,000 S0,000 10,000
ChequefInstrument
Clg.f& Transfer FULL FULL FULL FULL 2,S0,000 2S,000
chequefinstrument
Note : `Branch Nanager' is the No. 1 authority of the branch in this context irrespective of his
designation.
108
CHAPTER-VI
CHAPTER VII
RTGS {ReaI TIme Gross SettIement)
1. PREAMBLE
These guidelines shall be called `RTGS Operating Guidelines' and shall come into force from
13.06.200S.
Real Time Gross Settlement (RTGS) system introduced by RBI is one in which payment
instructions between banks are processed and settled on Real Time and on gross basis
instead of net basis i.e. individually and continuously throughout the day.
The System (i.e. the RTGS System), set up, operated and maintained by the Reserve Bank
of India (RBI) comprises a Central System consisting of the RTGS application & the Inter-
Bank Funds Transfer Processor (IFTP) application. The participant Nember Interface (referred
to as the PI) is provided by the Reserve Bank of India (RBI) to all the eligible members
of the RTGS System.
Unless specifically mentioned otherwise, the `time', mentioned in this document, shall mean
and imply Indian Standard Time and all àmounts', mentioned in this document, shall be in
Indian Rupees.
Time stamps, affixed by the Central System on the transactions and events, will be the
applicable time stamps involving the RBI and the Bank for all matters relating to the Central
System.
2. TERMINOLOGY
RTGS Real Time Gross Settlement
IFTP Inter-Bank Funds Transfer Processor
PI Participant Nember Interface
SFNS Structured Financial Nessaging System
IFSC Indian Financial System Code
UTR Unique Transaction Reference
IDRBT Institute for Development & Research in Banking Technology
CBS Core Banking Solution
INFINET The Indian Financial Network
109
3. RTGS MEMBERSHIP
3.1 Entities in the banking and financial sector in the country, on being granted RTGS
membership by the RBI, will each be assigned a membership type. The membership
type of each RTGS member will determine the transaction types for which the RTGS
member will be eligible under the RTGS System. The membership type is assigned at
the discretion of the RBI. All the Scheduled Banks, including the Scheduled Cooperative
Banks, are eligible for Nembership Type À'. All such RTGS members are eligible for
all types of RTGS Transactions including customer-based RTGS Transactions. All such
RTGS Nembers will have a PI each and will be eligible for Intraday Liquidity support
from the RBI. All such RTGS members will require to have the infrastructural facilities,
as specified by the RBI from time to time, to continue to be eligible for participation
in the RTGS System.
3.2 RTGS Settlement Account : On its admission as an RTGS member the Bank is required
to open a separate account, called the `RTGS Settlement Account' with the Deposit
Accounts Department, RBI, Numbai exclusively for the purpose of the settlement of
the RTGS transactions or any other purposes, as may be notified by the RBI from
time to time.
4. SETTLEMENT & FUNDING ACCOUNT
+.1 As required, the Bank has opened a `RTGS Settlement Account' with RBI, Numbai and
D. N. Road, Numbai Branch is maintaining the said account. Treasury Branch, Numbai
is operating the account.
AII other RTGS enabIed branches must not use the nomencIature ''RTGS
SettIement Account'' In theIr books, Instead they may use ''RTGS Account''
for recordIng transactIons through RTGS system at respectIve branches.
+.2 This account (RTGS Settlement Account) will be used exclusively for the purpose of
the settlement of the RTGS transactions or any other purposes, as may be notified
by the RBI from time to time.
+.3 The ``RTGS Settlement Account'' is required to be funded by the Bank at the RTGS
Start-of-Day. Treasury Branch, Numbai will provide a duly authorized mandate, in the
form of a Standing Instruction with Deposit Accounts Department, RBI Numbai in the
prescribed format, for transfer of a predetermined amount at the commencement of
every RTGS business day to the ``RTGS Settlement Account'' from the existing account,
called Funds Account, maintained by D. N. Road Branch, Numbai.
+.+ The balance in the ``RTGS Settlement Account'' at the RTGS end-of-day is swept back
by RBI to the Funds Account of D. N. Road Branch. Thus, at the end of the day, the
balance in ``RTGS Settlement Account'' becomes Nil.
CHAPTER-VII
110
+.S The Treasury branch at Numbai functions as the gateway to the RTGS System for
the bank. All other RTGS enabled branches will therefore have access to the Central
System through the Treasury branch at Numbai.
5. TRANSACTION TYPES
S.1 The following payment instructions, at present, may be settled through the RTGS
System.
a. Payment to other banks on account of inter-bank transactions
b. Customer related transactions i.e. payment to other banks as per customer's
instructions.
S.2 The details of the New transaction types other than those stated above as and when
permitted by RBI will be communicated to the branches.
6. RTGS ENABLED BRANCH
6.1 Head Office T&IN and Planning & Development department shall identify branches for
RTGS enabling depending on their business requirements.
6.2 This selection will be communicated to HO DIT, who will initiate steps to provide the
branch with necessary infrastructure (hardware, software, connectivity, and security
systems etc.) Further, smart cards are to be provided to officers who are to be identified
by the branch for operating the RTGS Systems. Number of such officers may be decided
by the branch and DIT depending upon the requirement.
6.3 Branches identified for being RTGS enabled will first have to be equipped with the
SFNS solution. Once the necessary hardware, SFNS software and Smart Cards are
provided to the identified branch, the branch will first be enabled for sending and
receiving SFNS messages. This will be done by providing the branch with an IFSC
(Indian Financial Service Code and proliferating the branch on the SFNS network in
coordination with IDRBT (Institute for Development & Research in Banking Technology),
Hyderabad and the SFNS Gateway at Treasury branch in Numbai. On being SFNS
enabled the branch will be able to send and receive SFNS messages but not RTGS
messages (R +1 & R +2). To be RTGS enabaled, the procedure as laid down in para
6.+ have to be complied with.
6.+ The Branch equipped with the SFNS solutions will have to confirm to DIT, H.O. about
its familiarity with the messaging system and successful testing for SFNS messages to
and from the branch and its readiness to be RTGS enabled. DIT will then instruct the
Treasury branch to forward a request to RBI Numbai to make the branch RTGS enabled.
On receiving the clearance from RBI Numbai, Treasury branch will make all necessary
CHAPTER-VII
111
changes at their end to add the branch to the list of RTGS enabled branches and
inform DIT, H.O. and the concerned branch. At this stage, the branch will become
RTGS enabled and be able to send and receive the RTGS messages R +1 and R +2. It
will also be able to find out the current list of branches (of all Banks) offering RTGS
services from the system.
6.S The Bank will be going in for a Core Banking Solution (CBS) in the near future. The
CBS will have the necessary interface with the RBI RTGS system and all CBS branches
will then be RTGS enabled through such interface.
7. COMMUNICATION BETWEEN THE PI AND CENTRAL SYSTEM
7.1 All RTGS enabled branches will communicate with the IFTP system of the Central
System only through the PI gateway at Numbai Treasury Branch.
7.2 Node of communication : All the interactions between the IFTP System and the PI will
be through pre-defined messages only. The Indian Financial Network (INFINET) or any
other communication network, as may be specified by the RBI for the purpose from
time to time, will be the communication backbone for all such interactions.
7.3 Security of communication : All the messages between the PI and the IFTP System
will be digitally signed and encrypted for ensuring security of message transfer. The
IFTP System will not accept for further processing any message from any PI, which
does not meet the security requirements. Any message from a PI to the IFTP will be
digitally signed and encrypted by the PI. Similarly, any message from the IFTP to the
PI will be digitally signed and encrypted by the IFTP. For the purpose, each PI will
be required to have a pair of signing and encryption certificates from the Institute for
Development and Research in Banking Technology, Hyderabad Certifying Authority (IDRBT
CA), following the IDRBT CA Certification Practice Statement (CPS).
7.+ Format for communication : All messages between the PI and the IFTP system will be
exchanged only in the pre-specified message formats.
7.S Unique Identification for Nessages : Every message, released by the PI to the IFTP
system, is assigned a Unique Transaction Reference {UTR) before it is released. A
message, not containing a UTR, will not be processed by the IFTP System. Further,
every message, released by the PI to the IFTP system, is assigned a Sequence Number
(SN).
S. EFFECTING PAYMENTS THROUGH RTGS SYSTEM
8.1 RTGS enabled branches will input their payment messages number 298fR+1 (customer
payments) & number 298fR +2 (interbank payments) through SFNS (Structured Financial
Nessaging System). Since such branches are directly connected to the RTGS system
CHAPTER-VII
112
through the PI gateway, payment instructions will go straight to RBI server through
the PI gateway at Treasury branch and be processed by RBI.
8.2 The payment originating branch will receive two acknowledgements - one from the
Treasury Branch server, bearing number R 90, and another from RBI server, bearing
number R 09. R 09 will indicate the time of settlement at RBI.
8.3 RTGS system allots a unique transaction reference number (UTR No.) to each
transaction. This comprises of five parts as shown below.
e.g. UCBA P 0S 120 000013
UCBA Identification code for the bank
P Participant interface (i.e. Treasury Gateway)
In case of other RTGS enabled branch this will be H (host)
0S Year
120 Day of the year (from 1st January)
000013 Serial number of the message for the day.
8.+ The IFTP (Inter-bank Fund Transfer Processor) at RBI will savefstore the message and
in case of payment messages, construct a settlement message, containing only the
data required for settlement, by stripping off the commercialfcustomer data and will
forward the same to the Central RTGS System. It will also acknowledge the message
received from PI through R 11.
8.S The Central RTGS processor will process the settlement message and the fate of the
settlement message will be advised to the IFTP.
8.6 On receipt of the response from Central RTGS processor, IFTP will enrich the message
received from the RTGS system by adding back the customer details and send, in
case of successful settlement, to receiver as per IFSF code.
8.7 Effect of HoIIday at destInatIon State : In case the account of the beneficiary of
the RTGS remittance is maintained with RTGS member bank in a State where there is
a banking holiday on the day of the receipt of the credit notification at the treasury
branch, the funds will be credited to the account of the beneficiary on the next working
day of the destination bank-branch with value date of the previous working day (i.e.
the day of receipt of the credit notification at the Treasury Branch).
8.8 Quantum of transactIon : There is no floor or cap value for transactions which are
sent to RTGS system for settlement.
CHAPTER-VII
113
8.9 The transaction flow is given below :
RTGS TransactIon FIow Chart
9. TIME-SCHEDULE
9.1 Customer initiated RTGS Funds Transfer
Time band for accepting applications for RTGS payments
9.00 A.N. till 2.30 P.N. on weekdays and
**
9.00 A.N. till 11.00 A.N. on Saturdays.
)
** Sub]ect to changes which may be notified by Reserve Bank of India from time to
time. Treasury Branch, Numbai will intimate such changes to all RTGS enabled branches.
RTGS enabled SFNS branch of
UCO BANK
Nessage
R90 ack 298fR+1, 298fR+2
pymt msg
R 09 ack
Treasury Br. Gateway
Nessage is transmitted to RBI.
UTR number is generated
R 09
ack
R 11 ack
298fR+1,
298fR+2 msg
RBI RTGS system - (IFTP + Central RTGS
Processor). Transaction settled
acknowledgement sent to host, gateway
Settlement msg
Destination Bank
1
2
S
3
+ S
6
t
t
t
t
t
t
t
t
CHAPTER-VII
11+
9.2 Inter-Bank Transactions
9.00 A.N. till +.30 P.N. on Weekdays and
**
9.00 A.N. till 1.00 P.N. on Saturdays
)
** Sub]ect to changes which may be notified by Reserve Bank of India from time to
time. Treasury Branch, Numbai will intimate such changes to all RTGS enabled branches.
1. SERVICE CHARGE
10.1 Service Charges of Re. 1f- per Rs. 1000f- with a minimum of Rs. S0f- and maximum
of Rs. 2S00f- per transaction will be charged under RTGS. Such service charges are
inclusive of Service Tax and Education Cess. The service charges are to be levied on
transactions involving debit of the account for the purpose of funds transfer.
10.2 The rate may be revised when the system stabilizes and market trends become visible.
11. PROCEDURE FOR CUSTOMER INITIATED RTGS FUNDS TRANSFER :
11.1 ELIGIBILITY : Any customer desirous of availing the RTGS Funds Transfer facility is
required to maintain an SBfCurrentfCash-Credit account at the branch. The RTGS funds
Transfer will be allowed only against debit of the account designated by the customer
for this purpose. The branch must ensure that KYC norms have been followed
scrupulously in such accounts.
11.2 APPLICATION : Customer will submit RTGS Funds Transfer-Application Cum Payment
Order Form RTGS-1 (Annexure-1) duly filled-in, including service charges as applicable.
11.2.1 The applicant will enclose with the RTGS-1 a debit authorityfCheque drawn on
the designated account favouring the Bank for like amount. The applicant will
fill in particulars of the Cheque on the RTGS-1.
11.2.2 Before accepting the application, the branch will verify, from the list of Indian
Financial System Code (IFSC) Directory, the code of destination bank branch
(under 298 R +1 or 298fR +2 message type appearing in the branch terminal).
If such code is not available, the request would be re]ected. The branch will
also verify the applicable commission.
11.2.3 The payment-order will not be accepted if :
a. The funds available in the account of the customer are not adequate or
not properly applicable to comply with the payment-order.
b. The payment-order is incomplete or is not issued in the specified form
(RTGS-1).
c. The payment-order is attached with any conditions.
d. The Bank has reasons to believe that the payment-order is issued to carry
out an unlawful transaction.
CHAPTER-VII
11S
e. The payment order cannot be executed through RTGS System.
11.2.+ No payment-order shall be binding on the Bank until the Branch has accepted it
and issued the counter foil of the payment-order to the customer. As such the
counter foil should be handed over to the customer only after compliance of
point(s) 11.2.2 & 11.2.3 above.
11.2.S Once the payment-order is submitted and accepted by the branch, no revocation
is permissible unless the branch receives the notice of revocation before initiating
execution of the payment-order.
12. EXECUTING CUSTOMER RELATED RTGS FUNDS TRANSFERS-OUTWARD
12.1 The authorized official will carry out careful scrutiny and verification of the signature
of the customer in the RTGS Funds Transfer Application cum Payment Order on Form
RTGS-1 and the accompanying Chequefdebit authority.
12.2 The Chequefdebit authority supporting the RTGS payment-order RTGS-1 for the full
amount i.e. amount to be remitted plus Bank's Service Charge plus RBI Charges, if
any, will be debited to designated account after entries are recorded in the Transfer-
Scroll as usual. The RTGS-1 will serve as the credit-voucher for RTGS AfC. The
accounting entires will be :
Debit (Dr.) Credit (Cr.)
1. Account of the customer 1. RTGS Account (with the remittance
(with the amount of amount of RTGS-1
Chequefdebit authority)
2. Exchange & Commission Received -
Afc. RTGS [with the amount of RBI
charges and Bank's commission etc.|
12.3 After debiting the account, the debit-confirmation should be signed on the RTGS-1 in
the space provided after filling up the other particulars viz. the Transfer scroll Number
and the date of transfer.
12.+ Next, the RTGS-1 will be entered in the RTGS (outward) Register RTGS-2 (Annexure-
2). The distinctive remittance number will have first four digits for branch ID no. next
six digits for day, month and year and rest three digits for the serial number of the
remittance. ExampIe : the serial number of the sixth RTGS remittance dated 31st Nay,
200S originating from D. N. Road Branch (ID No. 0003) will be as under :
Branch ID No. Date (dd mm yy) Day serial No.
CHAPTER-VII
116
12.S The serial number will start from 1 (one) everyday and continue unbroken till day-
end. After allotment of and noting of the serial number, the authorized official will
sign and return the counter foil copy to the customer in token of acceptance of the
payment order.
12.6 The above serial number will serve as the branch identification number for the particular
transaction and should be entered in 298 R+1f298 R+2 as NUR (Nessage User
Reference). This apart, the SFNS system will also allot a Nessage ID to the payment
instruction sent.
12.7 Furthermore, the PI will again allot a UTR number to the payment instruction for
reference by the RTGS System. (as mentioned in para 8.3).
12.8 If the destination bank branch re]ects the remittance (say, because the destination
bank branch finds that the account does not exit, the account frozen etc.) it will refund
the amount of remittance as a fresh outward remittance to originating branch. The
customer will be advised accordingly.
12.9 All charges relating to re]ection (say, RBI charges etc.) are to be recovered from the
customer.
12.10 At the end of the RTGS Business Day, the column `ÀcceptedfRe]ected'' in RTGS
(Outward) Register will be filled in.
12.11 The branch will pass the following accounting entries at the end of the RTGS business
day.
1. RTGS Afc 1. Head Office Afc.
With the total amount of remittance (issue IBCN favouring DN Road Br.)
of all RTGS-1 accepted during the day
12.12 In case of payment re]ected by the destination branch :
1. IBCN Paid account 1. RTGS Afc.
(DN Road branch) (with the amount of remittance
received)
2. RTGS Afc. 2. Account of the beneficiary with the
(with the amount of remittance amount of remittance returned.
received)
3. Account of the Beneficiary 2. Exchange & Commission Recd.
(with RBI charges as applicable) (Afc. RTGS)
CHAPTER-VII
117
13. EXECUTING CUSTOMER RELATED RTGS FUNDS TRANSFERS-INWARD
13.1 Branch will receive 298fR+1 or 298fR+2 through SFNS and they have to afford credit
to beneficiary according to the instructions contained in it. RTGS being real time
settlement, the officer attached to the SFNS desk should continuously monitor receipt
of all inward messages.
Following accounting entries are to be passed
1. IBCN Paid account 1. RTGS afc.
(DN Road Branch) (with the amount of remittance
received)
3. RTGS Afc 2. Account of the beneficiary with the
(with the amount of remittance amount of remittance.
received)
3. Account of the Beneficiary +. Exchange & Commi ssi on Recd.
(with RBI charges as applicable) (AfC RTGS)
[Note : As and when the Bank decides to levy a charge to the beneficiary for inward
remittances, the same shall be conveyed to the branches and applied accordingly|
13.2 In case the title of the account does not tally, reliance will be placed on the account
number after due verification. If the inward credit cannot be given effect for reasons
like beneficiary's account does not exist or is frozen, the amount will be remitted back
to sender by preparing a return payment message incorporating the reference of the
originating bank and transmit the same as a new payment message. This has to be
done positively within two hours from the time of receipt of the inward message at
the Payment Gateway or before closing time for RTGS whichever is earlier.
13.3 The print out of the inward RTGS payment messages received by the branch will be
authenticated by one of the officers handling SFNS desk and delivered to the concerned
department officer (deposit, remittance, bills, advances etc.) under acknowledgement
with instructions to confirm the SFNS officer within one hour that the proceeds have
been rightly applied. If the funds could not be applied in the manner specified, the
SFNS officer should be informed accordingly with specific instructions to return the
funds to the remitter giving reasons.
13.+ When the branch has re]ected a particular inward remittance (say, because the
destination bank branch finds that the account does not exit, account frozen etc.),
the amount will be first credited to RTGS AfC and then debited and sent back as a
fresh outward remittance as in preceding paragraph. A flat charge of Rs. 100f- shall
be deducted from the amount of remittance received.
CHAPTER-VII
118
Following entries are to be passed :
Debit (Dr.)
Credit (Cr.)
1. IBCN Paid Account (DN Road Branch) 1. RTGS Afc.
(with the amount of remittance (with the amount of remittance
received - INWARD) received - INWARD).
2. RTGS AfC 2. a) Head Office (IBCN favouring DN
(with the amount of remittance Road) (with amount of inward
received) remittance less Rs. 100f- towards
our handling charges for return)
2. b) Exchange & Commission Recd. -
AfC RTGS [with the amount of
handling charge Rs. 100f-|
13.S Particulars of all inward RTGS remittances will be duly filled-in on RTGS (inward) Register
RTGS-3 (Annexure-3) including the column `ÀcceptedfRe]ected''.
14. EXECUTING INTER-BANK TRANSACTIONS - OUTWARD
1+.1 Branches remIttIng surpIus funds
1+.1.1 For remitting Bank's own funds i.e. transfer of surplus funds in accounts
maintained with another bank, the originating branch which is remitting such funds
by way to T.T.fDDfPay Order of other banks will continue to do so if the other
bank is not RTGS enabled. In such cases the same accounting entries as at
present are to the passed.
1+.1.2 However, if the concerned branch of the other bank has RTGS facility the remitting
branch will ascertain the fees and after obtaining approval from the respective
R.O., the funds may be remitted through RTGS.
1+.1.3 The Remitting branch will pass accounting entries as per existing system with
additional information that the funds had been transferred by RTGS by concerned
bank.
1+.2 Branches makIng payments to other banks on account of fundsJcash
borrowed by them
1+.2.1 RTGS enabled Branch may directly repay the borrowing by sending a direct
payment instruction 298fR+2 to the concerned bank.
CHAPTER-VII
119
The following entries are to be passed.
1. CashfBank account (with the amount 1. Borrowing from Banks
borrowed from other bank)
2. Borrowings from Banks 2. RTGS Account.
3. RTGS Account. 3. Head Office account
(IBCN to be issued to DN Road
branch)
1+.3 Branches makIng payments to other banks on account of TTs receIved from
upcountry branches (i.e. : Kolkata, Bangalore, Chennai, New Delhi etc.)
1+.3.1 On receipt of a TT from upcountry branch, the metro branches will follow extant
guidelines in the matter if the beneficiary bankfbranch at their center is not RTGS
enabled. However, if the beneficiary bankfbranch is RTGS enabled, the metro
branch will create an outward message in form 298fR+2 favouring the beneficiary
bank and effect payment through RTGS.
Accounting entry in the books of the metro branch in such case will be as
follows :
1. IBCN Paid AfC 1. RTGS AfC
(of the upcountry branch)
2. RTGS Account 2. Head Office AfC (IBCN favouring
DN Road, Numbai Branch)
15. RESPONDING TO INTER - BANK TRANSACTIONS - INWARD
The procedures given under item 13 (Executing customer related RTGS funds transfers-inward)
shall apply mutatis-mutandis while responding to inter-Bank transactions-inward.
16. TRANSACTIONS INITIATED BY TREASURY BRANCH :
Where the Treasury Branch directly transacts through the RTGS settlement account, each
settlement will be followed by issuance of IBCN by D N Road BranchfTreasury Branch
depending upon whether there is inflow or outflow of funds from the RTGS settlement
Account.
17. 'RTGS SettIement Account' and 'RTGS Account'
17.1 ``RTGS settlement Account'' is the mirror account maintained by DN Road Numbai in
their books depicting the entire day's transactions (receipts & payments) in the ``RTGS
settlement account'' in the books of RBI.
CHAPTER-VII
120
Branches should not confuse this account with the ``RTGS account'' in their books.
17.2 Both 'RTGS SettIement Account' in the books of DN Road Numbai and 'RTGS
Account' in the books of individual RTGS enabled branches will show `NIL' balance
at the end of the day.
1S. SYSTEM ADMINISTRATION
18.1 The Computer Systems must be located securely within the Bank's premises such that
access to them is restricted to Bank's authorised personnel only. The list of authorised
personnel at each RTGS enabled branches shall be on records.
18.2 In the event that the communications between the Central System and one or more
of the RTGS members' Payment Systems Gateways fail or if some other emergency
affects its operation, the RTGS transaction shall be handled in accordance with the
special instructions, as decided and intimated by the Reserve Bank of India for the
purpose.
18.3 Each RTGS enabled branch shall ensure compliance with the procedures laid down by
the Certifying Authority (i.e. IDRBT CA) in regard to the generation and use of the
digital signatures andfor encryptionfdecryption methodologies, as required for
participation in the RTGS System. The RTGS enabled branches shall also ensure
compliance of any instruction relating to the security, house keeping etc., issued from
time to time by the Reserve Bank of IndiafHead Office.
18.+ If a branch is unable to connect to RTGS on a given day, because of technical
problems, then they need to notify Treasury Branch well in time so that request can
be sent to RBI for notifying that particular branch would not participate in RTGS for
the purpose of inward and outward messages and on such day, they will have to
transact their business through normal means other than RTGS.
19. INTERNAL POWERS {FOR OPERATING SFMS FOR MAKING PAYMENTS)
19.1 In SFNS, RTGS payment messages are to be created by a CTO on the basis of
password control. One officer using his smart card issued by IDRBT verifies the
message. A second officer using his smart card has to authorise the payment instruction
and trigger the send button.
In view of what has been stated in above, 2 officers who are entrusted with the
operation of SFNS on a given day would be in a position to take care of all the
payments irrespective of the amounts.
19.2 DebIt to any customer's account In case of customer payment and debIt to
any other account In case of Inter bank payment has to be authorIzed as
per the extant procedures of the bank for passIng cheques and other debIt
Instruments.
19.3 The officer authorizing the payment will not be the same person as the officer verifying
the message.
CHAPTER-VII
121
19.+ At the end of the day, a full report generated from SFNS along with the copy of the
print out of individual payment messages has to be signed by the 2 officers who are
handling SFNS system on a particular day and should be submitted to Branch Head
for his information. All these records are to be put along with the day's vouchers so
that they are available at any given point of itme in future.
19.S SFNS message reference number should invariably be incorporated in RTGS-1 and
duplication of payment instruction should be strictly avoided.
2. RECONCILIATION
20.1 In all inter-branch settlements arising out of RTGS transactions code number RTG 11S
will be used in respective IBCN and HODS. For remittance of funds to H.O. or by
H.O. (T&IN Department) the code to be used in HODS will continue to be TTA 212.
20.2 D N Road branch will provide Treasury branch a copy of the daily statement of RTGS
settlement Afc. issued by RBI. Treasury branch will provide a list of the transactions
pertaining to all RTGS enabled branches (as available in the PI gateway at the Treasury
Branch) to D N Road branch. On the basis of this statement, D N Road branch will
pass entries for settlement of account with other branches effecting payment tofreceiving
payment from another bank, and the direct transactions carried out by Treasury Branch.
21. ROLE OF THE TREASURY BRANCH
The Treasury Branch will carry out the RTGS functions strictly in accordance with the detailed
guidelines provided to them by RBI f Head Office (DIT and Treasury & Investment Deptt.).
it will convey to RTGS branches under advice to Head Office (DIT and Treasury & Investment
Deptt.) the instructions, if any received by it from RBI in regard to RTGS. It will carry out
the settlement of all payment obligations and ensure that the balance in its settlement
account is adequate to cover its settlement obligation and ceiling, if any, is not exceeded
and requirement of collateral, as specified by RBI is adequate in case the Intra Day Liqudity
Facility (IDL) is availed of. It will generate, dispatch and maintain records of transactions in
accordance with procedure specified by RBI.
22. ROLE OF THE REGIONAL OFFICE{S)
The Regions having branches located at centers where RTGS facility is available should
examine the cost effectiveness of the system and take steps to utilize the RTGS system for
funds transfer if the same is found cost effective. The Regional Offices shall ensure that
branches having surplus funds in their current accounts with RTGS enabled branches of SBI
or any other Bank remit such surplus funds through RTGS for credit to the RTGS settlement
account at Numbai.
23. OTHER ISSUES
23.1 The operating guidelines laid down in this document shall be modified to give effect
to any mandatory directives of the RBI or any policy change advised by the Government
of India in this regard. Head Office (T & IN department) may also modify the operating
CHAPTER-VII
122
guidelines as may be deemed necessary.
23.2 If any question arises regarding the application andfor interpretation of the contents
of this document, a reference shall be made to the T&INS Department, Head Office
and the referred matter will be dealt with in accordance with their decision.
23.3 If any situation or problem arises which has not been covered by this document a
reference shall be made to the T&INS Department, Head Office and the situationf
problem will be dealt with in accordance with their decision.
24. FORMS AND REGISTERS
Annexure I : RTGS Funds Transfer Application cum Payment Order and counter-foil
[Form RTGS-1|
Annexure II : RTGS Outward Register [RTGS-2|
Annexure III : RTGS Inward Register [RTGS-3|
CHAPTER-VII
UCO BANK For SINGLE TRANSACTION ONLY Annexure-I
Branch ....................... Form RTGS-1
Distinctive Remittance Number (for Bank's use)
Branch ID d d m m y y Day's Sl. No.
RTGS FUNDS TRANSFER APPLICATION CUM PAYMENT ORDER Date .........................
(To be filled in by the Applicant in Block Letters)
1. Name and Address of the Applicant :
2. Account No. 3. Type of Account
2. Name and Address of the Beneficiary :
2. Bank
3. Branch +. City
S. State 6. IFSC No.
7. Account No. 8. Type of AfC
Amount to be remitted Rs. ........................ Bank Charges (including RBI charges) Rs. ..................... Total Rs. ....................
(Rupees ..................................................................................................................................................................... only)
IfWe agree to the terms and conditions printed on the reverse hereof.
Enclosed Cheque No. ............................fDebit Authority dt. ....................... Rs. ............................ enclosed.
Customers Signature
FOR BANK'S USE ONLY
Time of receipt ....................... (ANfPN)
Applicant's designated AfC DEBITED
Date of Transfer................... Transfer Scroll No. .....................
Time of receipt ............................ (ANfPN)
Entered in the RTGS Register Outward (RTGS-2)
Destn. Bank Br. IFSC No.
SFNS Reference No.
Settlement Advice Received (Time) ........................... (AN f PN)
UCO BANK
Branch .......................
Form RTGS-1
Distinctive Remittance Number (for
Bank's use)
Date ................... Time ................
Received from ..............................
...................................................
ChequefTransfer for RTGS
Remittance favouring ....................
...................................................
Bank ...........................................
Branch ..........................................
No. ................................................
entry ...........................................
Amount Rs. ..................................
charges Rs. ....................................
Total Rs. ......................................
Rupees ..........................................
..................................................)
terms of remittance are on the
reverse.
...................................................
123
TERMS & CONDITIONS OF TRANSFER
1. The customer shall be responsible for the accuracy of the particulars given in this payment order issued by him and shall be liable to compensate the Bank
2. The customer shall ensure availability of funds in his account properly applicable to the payment order by the Bank. Where however the Bank executes the
payment order without properly applicable funds being available in the customer's account, the customer shall be bound to pay to the Bank the amount
debited to his account for which RTGS was executed by the Bank pursuant to his payment order, together with the charges including interest payable to the
Bank.
3. The customer hereby authorizes the Bank to debit to his account any liability incurred by him to the Bank for execution by the Bank of any payment order
issued by him.
+. The customer agrees that the payment order shall become irrevocable when the Bank executes it.
S. No payment order issued by the customer shall be binding on the Bank until the Bank has accepted it and issued the counterfoil of the payment order to the
customer.
6. The Bank shall not be liable for any loss or damage arising or resulting from delay due to shut downfnon-connectivity of the system or due to batch-process-
ing taking precedence or any delay in transmission, delivery thereof or in deciphering the message from any cause whatsoever or from its misinterpretation
received or the action of the destination Bank or any act or event beyond control.
7. The remitter should check all payment instructions carefully. As per RTGS rules, funds are to be credited to destination account number given even if the
name of the beneficiary does not tally. The Bank shall not be liable for any loss of damage arising or resulting from such discrepancy.
8. Nessages received after cut-off time will be sent on the next working day.
9. If there is a banking holiday at destination center on the day of the receipt of the credit notification at the Treasury Branch, the funds will be credited to the
account of the beneficiary on the next working day with value date of the previous working day.
12+
Annexure-2
RTGS-2
UCO BANK
RTGS OUTWARD REGISTER
Sender's Details Beneficiary's Detail Destination Bank Branch Details
Name & Address
Type Afc.
of Afc. No.
Name & Address
Type Afc.
of Afc. No.
Center Bank Branch Br. Code
Accepted
f
Re]ected
Date Time Amount Intl. Intl.
Sl.
No.
12S
Annexure-3
RTGS-3
UCO BANK
RTGS INWARD REGISTER
Remitting party Beneficiary Sender Bank Branch
Name & Address
Type Afc.
of Afc. No.
Name & Address
Type Afc.
of Afc. No.
Center Bank Branch Br. Code
Accepted
f
Re]ected
Date Time Amount Intl. Intl.
Sl.
No.
126
127
VOL. - II {REMITTANCES)
SPACE FOR ADDITION J ALTERATIONS
128
129
130

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