1.

BANK’S PROFILE

It is believed that Shri Ghansham Das Birla, the doyen of Indian Industry started a Bank on the
6th of January 1943 at the behest of none other than the father of the nation- Mahatma Gandhi.
Little did he realise then that he was to set in motion one of the fastest growing phenomena in the
history of banking - UCO BANK (then known as the United Commercial Bank).

Within just 6 years of its existence, it had spread its banking network world wide, opening
branches in Singapore, Hong Kong, London, Malaysia and Burma in the process. In 1968 UCO
BANK had undertaken a 20 % capital initiative in the formation of the Bank of Sikkim, sponsored
by the Govt. of Sikkim. And then again in 1969 when 14 banks were nationalised UCO BANK again
figured in the top five in terms of size, business and profits. And from there on it has been a
brilliant spate of landmark achievements; 500th branch at Sonapur (Assam) in 1971, 1000th
branch at Jatindra Mohan Avenue, Calcutta in 1977, 1500th at Rajwas ( Rajasthan) in 1983 and
2000th in 2009 in Sivaganga (Tamil Nadu).

Today with 2390 branches, business of Rs2,71,507 crores ,capital of Rs12,042 crores capital ,
yearly net profit above Rs.1109 crores and backed by a 23000 plus - dedicated workforce, UCO
BANK has ensured its prominent place among public sector banks in the country.

Along the way we have also sponsored 5 Regional Rural Banks nationwide, and is the State
Level Bankers Committee Chairman in two States- Orissa and Himachal Pradesh and lead bank in
34 districts spread over seven States (W. B, Orissa, Bihar, Assam, Rajasthan, Punjab and Himachal
Pradesh). Incidentally UCO BANK is the only bank (after SBI of course) having branches in all States
and Union Territories in India.

Technology wise too, we have been virtually in the forefront with a strong platform.
Bank had launched the VISA DEBIT CARD way back in 2004; E - Banking in 2007 and transaction
enabled mobile banking in 2011. All the branches of the bank are 100% CBS compliant. Today a
customer having his account opened with UCOBank can virtually do away with carrying any cash
since our technology products will take care of all his daily needs such as purchase of grocery,
consumer goods, payment of various bills such as telephone, electricity, insurance premium,
income tax etc besides ASBA facility, online share trading, airline and railway ticket booking,
mobile recharging, donations etc.Now one can also make a fixed deposit with the e-banking
facility.

And OUR BANK is always in the fore front for serving the nation by helping the entrepreneurs,
Industrialists, farmers, youths ,SHGs,students etc. Our various SME hubs opened in various parts
of the country cater to specialised sector UCOBANK is the pioneer in “Banking on wheels” concept
and ICT based financial inclusion. No surprise the bank has won the IBA award for best
technological initiative in financial inclusion.
UCOITES have not stopped to catch our breath just yet, for we envision to emerge as the most
trusted , admired and sought after world class financial institution and, convinced to the heart, we
can and will achieve that.

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 * CONTENTS *

SUBJECTS From To
1 UCO Bank Profile: A Brief History 3 3
2 Uco Bank at a glance 5 5
3 Banker customer relationship 5 11
4 Various forms of business enterprises or Entities 11 25
5 Know Your Customer 25 30
6 Various types of Domestic Deposit Accounts 30 30
7 Savings Bank Account 30 37
8 UCO No Frills Scheme 37 38
9 Zero Balance scheme 38 38
10 Tierised Savings Deposit Schemes 39 39
11 Current Accounts 40 45
12 Tierised Current Accounts 45 49
13 Fixed & Time Deposit 49 53
14 Recurring Deposit 53 54
15 Special Deposit Schemes & UCO Tax Saver 54 55
16 Nomination Facility 55 58
17 Settlement of deceased Claims 59 64
18 Basic Accounting Principle 65 74
19 BCSBI 74 75
20 Lockers 76 81
21 Negotiable Instrument Act 82 92
22 RBI Act & BR Act 93 96
23 Service Conditions 96 108
24 Technological Products 109 136
25 NEFT/RTGS 137 144
26 Third Party Products 145 168

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 2. UCO BANK AT A GLANCE in crores

Parameter 31.03.2012 31.03.2011

1 Total Business 271507 245839
2 Total Deposit 154093 145278
3 Advances 117504 100561
4 Investment 46185 43124
5 CD Ratio 76.30 69.22
6 CASA Deposit 33867 31668
7 Retail credit 9267 9421
8 SE 20381 15727
9 Agriculture 9718 11664
10 Total Priority Sector Advances 29648 28253
11 % of PS to ANBC 42 43.91
12 Operating Profit 2812 2685
13 Net profit 1109 907
14 Cost of Deposit 7.47 6.34%
15 Yield on advance 11.30 9.86
16 Net Interest Margin 2.71 2.38
17 Book value per share 94.72 83.16
18 Earning per share 16.68 14.29
19 Capital 12042 11350
20 Tier I 7891 7085
21 Tier II 4151 4285
22 Capita Adequacy Ratio 12.35 13.80
23 NPA 2264 2131

3. Banker Customer Relationship

What is a Bank ?
““Banking” is defined as accepting for the purpose of lending or investment of deposits of money
from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or
otherwise”. (Sec 5-b of BRA)
• Acceptance of deposits should be for the purpose of lending and investment.
• The deposit should be accepted from the public
• Acceptance of deposit should be in money
• Deposits are repayable to depositors on demand or otherwise(term deposits).
• Deposits are withdrawable by cheque, draft , order or otherwise.

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Customer ?
Generally speaking, anyone conducting a banking transactions with a bank is a bank customer. A
person who only avails services like remittances, encashment of third party cheques ( as payee )
without having an account is not a customer of the bank.
A person who maintains any type of account with the bank, be it deposit account, loan account,
safe deposit account, locker account ( which is duly introduced, as per Goiporia Committee
Recommendations)

Who could be a customer ?

It could be :
• An individual
• A group
• A firm
• A company
• A trust
• An institution
• Govt/semi-govt/ local self-govt organisation

Different Types of Banker-Customer Relationships

A Debtor-Creditor :
Bank as Debtor and Customer as Creditor for deposit of money by customer.

A Creditor – Debtor:
Bank as Creditor and Customer as Debtor for lending of money by Bank

Bailee-Bailor :
For Safe Custody Services. Bank is a Bailee and the other as Bailor.

Trustee and Beneficiary:

Payee of Draf

Lessor and Lessee:

For Lockers. Bank is the Lessor and the hirer is the Lessee.

Pledgee and Pledger:

In case of Pledgee.

Mortgageeand Mortgagor:
Mortgage

Assignee and assignor:

Assignment

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Agent – Principal Relationship:
Collection of Cheques, Bills etc
Pay Electricity bills, insurance premia, telephone bills, club fees etc.

Bank as Consultant.
Banks nowadays help the customers by rendering consultancy services and advice.

On account of above relationships , a banker has certain obligations & rights.

Obligation to pay cheques
• It is a statutory obligation of the banker.
“ a banker having sufficient funds of the drawer in his hands properly applicable topayment of the
same must pay the same when duly required to do so and in default of such payment must
compensate the drawer for any loss or damage caused by such default” ( Sec.31 of NI Act)

Obligation to maintain Secrecy of Accounts

• It is one of the principal duty of the banker to maintain complete secrecy of the status of his
customer’s account.
• This obligation continues even after the customer’s account is closed.
Unwarranted disclosures make the banker liable to compensate the customer.

Disclosures permitted by law

• Income-tax Act
• Companies Act
• Bankers Books Evidence Act
• RBI Act
• FEMA
• Gift Tax Act
• Under Express or Implied consent of the Customer.
• Disclosures in Bank’s interest.
E.g: For filing suit, information may be passed to the advocate, guarantor etc.
• Disclosure in Public/National Inter est.

Disclosures of Customer’s Account

PRECAUTIONS:
• It should be a statement in general. (E.g: Fair, good, excellent etc)
• Disclosures should not be based on rumours
• Secrecy should also be maintained by recipient also
• Information should not be given without proper justification.
Thus :
• Bank should take utmost care while disclosing customers accounts.
• Undue or irrelevant reports should not be given.
• The opinion should be brief and factual.

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 • While giving information to other banks/FI, bank should indicate that the information is
given in confidence and should be kept so by the recipient.

Rights of a Banker

Right of Lien:
Lien is the right of the creditor to retain possession of the goods and securities owner by the
debtor until the debt due from the latter is paid (Sec.131 of IC Act)
• The creditor , however, does not have the right to sell.
• The creditor can only retain the goods/ property till the repayment of the debt.
• However, the right of banker’s lien is different.
• It is an implied pledge.

Lien is of two types :

• General Lien and
• Particular Lien

Banker’s Lien is a General Lien

• It applies on all goods and securities received by the Banker during the course of
banking business.
• No separate agreement is required for creation of lien.
• Law of Limitation Act not applicable.

Exceptions
• Safe custody articles.
• Immature debts
• Documents /money deposited for specific purpose.
• Securities/ valuables left through oversight at the bank’s premises
• Stolen goods of the customer

Right of Set-off
When a bank transfers a part of balance from one account to another of the same customer,
both accounts operated by him in the same capacity, it is set-off.
--Conditions
• The same name and the same right
• Debts due and absolute.
• No agreement to the contrary
• It is Banker’s discretionary. Customer cannot compel for it.

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Rule in clayton case:
“ the first item on the debit side of the account is discharged or reduced by the first item on
the credit side. The credit entries in the account adjust or set-off the debit entries in the
chronological order”
In case of running cash credit account or current account, the rule in Clayton’s case will apply.
The rule does not apply to Fixed deposits, Savings Bank Accounts etc.

Mandates
A Mandate is an authority given by the account holder in favour of a third person to do
certain acts on his behalf.

Requirements :
• It is unstamped letter
• Signature of the person so authorised is attested by the account holder(s).
• It is issued for a short or temporary period
• No mandate from limited companies,Co-op societies
A Mandate comes to an end:
• On death, insanity, insolvency of the account holder.
• It can be withdrawn at any time by the account holder.
•
Power of Attorney
It is a document executed by one person called “principal” in favour of another person
called “agent” to act on behalf of the former strictly as per authority given in the document.
POA is of two types : General & Special

Essential requirements:
• It is a stamped document and generally executed before a Notary/Magistrate of a
Court or govt official who is authorised to do so.
• The POA is a document addressed to the world at large.
• The principal can withdraw or cancel it at anytime.
• Sometimes, power of attorney authorises the agent to sign borrowal documents on
behalf of the principal who is ultimately liable to pay the loan amount to the bank.
• An agent who is authorised to operate the account can also stop payment of the
cheque.
• The power of attorney holder should sign as per pro

GARNISHEE ORDER
• The Garnishee Order is issued under Sec. 60, Order XXI rule 46A – 46E of Code of Civil
Procedure 1908. This part of CPC deals with the execution of decrees and orders.
• Garnishee order is issued by the court on the application made by the judgment creditor
in a situation where the judgment debtor refuses to pay debt payable to him. The
garnishee order is issued on the banker maintaining account of the judgment debtor.

There are three parties:

a. Judgment debtor: Customer maintaining account with the bank and who refuses to pay
the debt payable to the judgment creditor.
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 b. Judgment Creditor: At whose instance the order is issued.
c. Garnishee: A person / institutions / department who is holding the funds in the name of
judgment debtor.
On receipt of the Garnishee Order the judgment debtor’s deposit account becomes suspended up
to the order amount and the banker cannot make any payment thereafter. The credit balance so
frozen is called garnished funds.

The garnishee order is issued in two parts:

a.  Order Nisi
b.  Order Absolute

 Order Nisi:
It is preliminary order wherein the court directs the banker to stop the payment and seeks the
explanation from the garnishee as to why the funds lying in the name of judgment debtor should
not be utilized for meeting the judgment creditor’s claim.

Order Absolute:
When on the basis of the report submitted by the bank, the court issues order to the banker
attaching the entire credit balance or a portion thereof to discharge the liability towards judgment
creditor.

 APPLICABILITY
•   On accounts in the same order and same capacity.
• Order issued in a single name will not attach the balance in joint accounts.
• Order received in the joint account will be applicable in the individual accounts but the
reverse is not possible.
• Order in the individual name will be applicable to the account of sole proprietorship
concern and vice versa as both accounts are in the same order and in the same capacity.
• Order in the name of partnership firm is applicable in the individual account of the
partners but reverse is not possible, because to settle the liability of partnership firm
under the joint and several liability concept, recovery can be made from the individual
account.
• Order is not applicable if the accounts are opened in different capacity even though
signatory in all the accounts is the same person.
•  Attaches only credit balance.
•   Garnishee order is applicable on debts due i.e. demand deposits and accruing due i.e.
time deposits.
•    Not applicable to future credits i.e. proceeds of collection item received subsequently.
It is also ineffective when the account is overdrawn.
•    Order is applicable to the credit balance at the time when order is served to the banker
and not on the subsequent credits/amount deposits, after the order is received.
•    Garnishee Order is issued for recovery of actual debts and not contingent debts
•    If garnishee order is received before the actual cash payment even though the cheque
has been passed for payment and token issued, the banker must stop the payment of
the said cheque as the Garnishee Order is applicable.
•   Garnishee Order is not applicable to money held abroad.
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 •   Garnishee order is not applicable on the items in safe custody or in safe deposit
lockers.
• The trust account cannot be attached even when a trustee is personally a judgment
debtor.
•    Securities lodged with the bank for meeting specific liability of the bank are not
attached by the garnishee.

•    Garnishee order is applicable on the accounts of the deceased because it pertains to

the previous liability already determined by the court but is not applicable on the
account of the insolvent person.
•     Garnishee order is not applicable to unutilized portion of credit limit or drawing
power.
•   Banks’ right of set-off and appropriation is superior and as such Bank can exercise the
right of set-off and appropriation before meeting any liability under the garnishee order.
• Order is not applicable on Fixed Deposit held as collateral security, but if the FDR is
held as primary security, garnishee order is applicable on unutilized portion of FDR.
   Order is not applicable in Minor account.
 
In the event of non compliance of garnishee order, the court may issue the order to the bank
(garnishee) which will be equivalent to the decree passed by the court against the bank.

4. VARIOUS FORMS OF BUSINESS ENTERPRISES OR ENTITIES

A Business entity can exist in any shape and depending upon certain specific features of it and its
owners/persons managing that business, different names have been given to it. During the course
of routine Banking, you shall come across these various forms which are mainly as under:-

1. Proprietorship
2. Partnership
3. Hindu Undivided Family
4. Joint Stock Companies

All these four types of entities come into existence for running any Business activity depending
upon whether a single person is managing it (Proprietorship) or HUF (Karta doing all activities for
the HUF) or so many persons/group of people are involved for sharing the benefits/ profits out of
the business Activity.

Besides the above, sometimes certain association are formed for some specific activities
(other than Business activities ) that are non profit making activities and are undertaken for some
social cause e.g. ‘Trust’ formation or with the purpose of serving the society e.g. a ‘club’ / ‘society’
etc/Accounts of Executors/Administrators.

In the following we shall discuss the salient features of such business as well as non business
entities whom we come across in our day to day routine.

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 1.PROPRIETORSHIP CONCERN:-

As the name denotes – a single individual known as ‘Proprietor’ runs the business. The investment
in business is made by him alone – the ‘capital’ brought in for the business and he is the sole
beneficiary of that activity. Such accounts can be in the name of that individual or in the name of
his business concern – Firm. They don’t require much formalities to be observed from Bank’s
point of view.
The ‘proprietor’ is personally liable and his estate/properties are chargeable/attachable in case of
his default to his creditors/Banker.

2. PARTNERSHIP ACCOUNTS

Partnership is defined as the ‘relation between persons who have agreed to share the profits of a
business carried on by all or any of them acting for all’ (Sec-4 of Indian Partnership Act).

A partnership can only arise as a result of an agreement or contract, expressed or implied between
the partners and not by status i.e. operation of law.

Minimum no. of partners in a Partnership Firm is 2 and Maximum number 20. In case of banking
company the maximum number of partners is 10.

A partnership may be formed orally or by a written document.

A partnership Firm may be registered or non-registered. The Registered Partnership Firm should
get registered with Registrar of Firms.

All other partners of a Partnership Firm are bound by the act of one of them.

A minor cannot become a partner by contract but a minor may be admitted as a partner to the
benefit of the partnership Firm by the consent of all partners. But the minor is not personally
bound by the act of the Firm.
Dissolution of a partnership takes place
On the expiry of term
Completion of the venture
Death of partners
Insolvency of a partner
Retirement of a partner.

3. HINDU UNDIVIDED FAMILY (HUF)

According to Hindu Law, Hindus, Jains and Sikh Communities conform ‘HUF’. In HUF, any
business or property of such a family is ‘ancestral’ and its ownership and benefits derived out of it
are shared by all the joint family members simultaneously.
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 The senior most male member is known as ‘Karta’ and he does/manages all the business
affairs alone on behalf of the entire family. Normally in an HUF, one ancestor and his next 3
generations are considered before next senior most male member takes over as ‘Karta’ from the
earlier one.
The ‘Karta’ in an HUF has all the rights and powers to raise a loan, execute Bank documents,
mortgage family property for running the ancestral business to support the entire family.
Besides the Karta, all other male members of the family are known as coparceners. A
coparcener gets the right of share in family business/ property since birth / inception but ‘Female’
members have no right.
An HUF having no male member to run the ancestral business further, can even adopt a male
child who shall be the ‘Karta’ later.
Please note that an HUF is not a partnership and it also cannot become a partner in any Firm.
Unlike a Partnership firm, neither a coparcener can stop a cheque issued by its Karta OR the HUF is
dissolved upon death of any of its coparceners.
The minor coparceners (male children) are represented by their guardian till they attain
majority.
Upon the death of a KARTA or his becoming unable to function as Karta – say due to severe
illness, becoming unsane etc., the next senior most male member becomes the ‘Karta’
automatically. In such a case the Bank should obtain a fresh HUF declaration and fresh Account
Opening form etc., for continuing the operation in that Account.

4. JOINT STOCK COMPANIES

A Company is an artificial legal person created by law

A Company is a voluntary association of a group of natural persons to achieve some common
objectives with capital divisible into transferable shares.
The property of a company is not owned by the members who own the shares and are called
shareholders. Their liability is limited to the extent of their share holding.
A Company will have a corporate office and a common seal.
A Company has a nationality and domicile but still not a citizen. It can sue and can be sued. It
can own property and maintain Bank account in its own name
Companies are of two types
• Private Limited Companies
• Public Limited Companies
The minimum and maximum no. of shareholders are 2 and 50 respective in case of Pvt. Ltd.
Companies whereas it is 7 and unlimited in case of Public Limited Companies.

A Private Limited Company should have at least 2 Directors whereas the number is 3 for Public
Limited Companies.
Shares of Public Limited Companies are freely transferable while such is not the case for
Private Limited Company.
Both the Private and Public Limited Companies are to be registered with the Registrar of
Companies as per provisions of Indian Companies Act 1956 and Certificate of Incorporation is
issued.

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 COMPANY ACCOUNTS
Difference between A Private Limited Company and Public Limited Company

Pvt ltd Co Public ltd Co

Minimum no of share holders 2 7

Maximum no of share holders 50 No limit

Transfer of shares Restricted Freely Transferable

Invitation to public for shares and

Debentures Prohibited Permitted

Certificate of commencement Not required Required

Minimum Directors 2 3
Minimum Paid up capital Rs 1 lac Rs 5 lacs

OPENING OF ACCOUNT
Documents Required:--
1. Certificate of Incorporation;-- This certificate is issued by Registrar of Companies after all
formalities are duly complied with. It ensures that the company is duly incorporated by law. Bank
should retain the certified photocopy of the certificate.
2. Memorandum of Association:- - Six important clauses are
Name clause
Place clause
Objects clause
Liability clause
Capital clause
Association clause-It gives the consent of the promoters that they are desirous of forming the
company.
The objects clause sets out the powers which the company can exercise for achieving its objective.
Therefore, it is also known as charter of the company
After registration, Memorandum of Association and Articles of Association become public
documents. Any person dealing with the company is expected to know their contents and ensure
that the share holders and directors are acting within the scope of these documents. In case they
act beyond the scope of memorandum of association, they are said to have acted “ultra virus” and
company is not liable on such contracts.
3. Articles of Association:-- It contains the rules and regulations for internal management of
the company like the powers of the Board of Directors, rules for conducting meetings, use of
common seal, use of borrowing powers etc

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4. Certificate of commencement of business:-- This certificate is issued by the Registrar of
Companies after ensuring that the minimum capital required by the company is subscribed by the
public. It is required only in case of public limited company.
5. Resolution Copy:-- The resolution by the Board of Directors must state that the Board has
decided to open a current account with the bank and the names of persons authorised to operate
the account. The copy of the resolution should be signed by the Chairman of the meeting and
countersigned by the Secretary of the company.

Any decision to be taken by the company is to be taken by the Board of Directors. Any decision
taken by the single individual can not bind the company unless it is authorised by the Board of
Directors to do so.

OMNIBUS RESOLUTION
It is a resolution passed by the Board authorising the company to open account in its name with
any bank at any place. This eliminates the problem of the company going to Board every time
passing resolution to open a bank account. No credit/loan facility is sanctioned in the account,
based on such a resolution.

INTRODUCTION
We do not require introduction while opening account in the name of a company because the
certificate of incorporation, memorandum of association and articles of association are public
documents.

PRECAUTION IN OPERATION OF ACCOUNT

1 Cheques payable to a limited company should not be collected in the personal account of any
director, employee, official of the company or any other party without proper enquiry.
2. Cheques payable to a limited company should not be paid in cash even if it is a bearer cheque.
3. Cheques issued by a company in favour of third party and endorsed by the payee in favour of
a director,/employee of the company should not be collected without proper enquiry.

Operation in case of death/ insolvency/insanity of authorised person:-

1. Cheque signed by an authorised person can be paid even after his death or insolvency.
2. Where one of the directors becomes insolvent, it does not affect operation of account.
Cheques signed by him can be paid. However, after insolvency, he can not act as a director.
3. If one of the two directors of a private limited company is adjudged insolvent, the operation in
the account should be stopped till a fresh director is appointed.
4. A company can not be declared insolvent. Where a company can not pay its debts, it can be
liquidated/wound up.

NON-PROFIT MAKING COMPANY

As per Sec 25 of Companies Act 1956, a limited company need not add the word limited to its
name if it is a non profit making association formed for the promotion of art, literature, religion
and licensed by Central Government.
Accounts to collect subscription money for its shares/debentures :--
Bank should note the following points-
1. The company will be given permission to commence business only when it collects the
minimum subscription stipulated in the prospectus. In case the company fails to collect the

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minimum subscription, it is bound to return this money to all subscribers. Therefore, the bank
should ensure that money is not withdrawn/utilised till the company is issued with the Certificate
of Commencement of Business.
2. No cheque book can be issued in such account.
3. No drawal can be allowed until the company obtains Certificate to commence business.

WINDING UP OF COMPANY
Winding up or Liquidation is the process by which a company is dissolved. It can be
voluntary/compulsory by Court /through Court supervision
1. Voluntary Winding up(by share holders)—If the company is solvent enough to pay its debts,
the share holders by means of special resolution in a general meeting can decide to go for a
voluntary winding up. They can appoint a liquidator by such resolution and the liquidator can open
and operate the account. . The style of the account is ‘‘XYZ Co Ltd. In liquidation’’.
2. Voluntary Winding up(by Creditors):—
In case the company is not in a condition to pay its debts, the voluntary winding up is called
Creditors Voluntary Winding up.
3. Compulsory Winding up:-
In case of compulsory winding up, the Court entrusts the liquidation proceedings to the official
liquidator. The liquidator can sell movable, immovable property of the company and raise money
on the security of company’s assets with the prior approval of the Court.
Without the approval of the court, the liquidator can draw, accept, make and endorse bill of
exchange, promissory notes on behalf of the company and can open account in the bank.
Before opening account , the bank should ask for the court order for winding up.
Order of payment of debts:-
In case of winding up, the debts of the company are paid in the following order:-
1. Workmen dues
2. Secured Creditors
3. Cost and charges of winding up
4. Preferntial debts
5. Floating charges
6. Unsecured Creditors

5. TRUST ACCOUNTS
The Indian Trust Act 1882 defines a ‘Trust’ (the ‘Act’ applies only to private trusts) – A trust, in
simple words is said to be created when the ownership of a property is transferred to somebody
(Trustee) with an obligation to hold and manage the same for the benefit of another. A trust can
be created for any lawful purpose and by any person competent to contract. The subject matter
of trust must be the property transferable to beneficiary
Any person capable of holding property may be trustee but where the trust wishes exercise of
discretion, he should be competent to contract.
Duties of trustee
To execute trust deed
To protect title to trust property
To exercise care and diligence
To be impartial

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To prevent wastage by another
To keep and render accounts
To invest trust money

Liabilities of trustee
For breach of trust
Not liable for the acts or defaults of his predecessor
Not to set off his liability

6. CLUBS, SOCIETIES AND ASSOCIATIONS

These bodies come into being and are governed by their Constitution or Bye Laws or
Memorandum & Articles of Association, Registration under Societies Registration Act is not
compulsory but if not registered, these bodies have no legal entity.
The constitution or bye law of these bodies is an important document. It gives information
about the office bearers, their powers, objectives, meetings and membership etc. These bodies
take decisions by passing resolutions.
In case of Co-operative Societies, Co-operative Societies Act of the state should be studied and
in case permission of Registrar of Co-operative Societies, to open the account is required, it should
be obtained. At times, the Registrar while granting such permission stipulates certain conditions
which must be complied with by the Co-operative Society.

7. EXECUTORS AND ADMINISTRATORS

An executor is the person appointed in a will by the testator to administer his estate according
to the instructions of his will. The court will approve the original will and grant probate letter
under its seal and signature of the authorized court official and also attach a certified copy of the
will along with probate letter.
The executor settles the deceased’s affairs according to the terms of the will. There can be
more than one Executor and powers of the Executors should be carefully studied. The Executor is
not to have any dealings with the estate, until the official probate has been obtained.
The Administrator is appointed by the court when the deceased has left no will or not named
any executor. The duty of the Administrator is to settle the deceased’s affair according to law.
The letter of Administration gives the Administrator authority/right to deal with deceased’s estate.
Legally any Administrator can deal with the funds of the estate on behalf of the others, unless
there is an arrangement to the contrary.
Executors/Administrators cannot delegate their authority to an outside person to operate the
account.

MINOR
A MINOR is one who has not completed 18 years of age. If a guardian is appointed by court
before minor attains 18 years of age he continues to be a minor till completion of 21 years of age.
A CONTRACT by minor is void ab-initio.
N.I.ACT, SEC.26 – a minor may draw, endorse, deliver and negotiate a promissory note, bill of
exchange or cheque so as to bind all parties except himself.
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 GUARDIAN maybe natural guardian or guardian appointed by Court of law. Only he has the
authority to deal with the person or property of the Minor.
NATURAL GUARDIANS are decided by personal laws.

RELIGION NATURAL GUARDIAN.

HINDU MINOR FATHER and after his death MOTHER

CHRISTIANS - do -
PARSI MINOR - do -
MUSLIM MINOR FATHER, after him Executor appointed by his will, then Father’s father,
then Executor Appointed By His Will.
PARTNERSHIP: Minor with the consent of all the partners may be admitted to the benefits of
partnership. Only minor’s share of partnership property and of profit are liable for the acts of the
firm but not any of his other personal property.

MINOR’S DEPOSIT ACCOUNTS

In spite of all the above complications, to serve the needs of the customers/society bank
allows opening of minor’s Savings, Recurring, Term Deposit accounts as under :
Operated by a minor who has attained 10 years of age and can read and write.
Operated by a Minor’s father or Minor’s mother or a guardian appointed by Court.
Opened by a Minor jointly with a guardian to be operated jointly, or singly on Either or Survivor
basis.
A joint account of a guardian of the Minor with the Minor on former or survivor basis with the
guardian as the former.
When Minor attains age of Majority as per bank’s record, notice to be served at least one day
before the date of majority and guardian should not be allowed to operate the account after the
minor attains majority. Fresh specimen card is to be taken from the minor becoming adult.
Guardian should sign as
For Master Sunil – MINOR
Sohanlal
Father and Natural Guardian.
NOTE: A current account in the name of Minor should not be normally opened.
ANNEXURE – I
PROFORMA OF NOTICE TO GUARDIAN ON MINOR ATTAINING MAJORITY
(Mail this notice positively one day before date of Majority)
Accounts opened by you behalf of
……………. (MINOR)
According to the records of the Bank Mr. …………………………….
the Minor comes of age on …………… As from that date, he alone will be entitled to operate on the
account and you would cease to have any authority to operate on the said accounts unless you are
given a mandate on the banks prescribed form by him to do so.
We shall be glad to supply you the Mandate form on application.
Please note accordingly.

Yours faithfully,

MANAGER.

16
 Copy to :……………………………………………….. For information
(State the name of the minor account holder)
It is requested that he kindly calls at the Bank to give his specimen signature for the future
operation of the account.
It is however, suggested that it would be better if he arranges for the closing of the old
account and opening of a new one.
MANAGER.

Annexure – II

FORM OF UNDERTAKING TO BE GIVEN BY FATHER AND MOTHER TO OPERATE MINOR’S ACCOUNT

ON EITHER OR SURVIVOR BASIS.

To
UCO Bank,
___________________ Date _________________

RE: Proposed Saving Bank/Fixed Deposit / Kuber Yojna/

Deposit certificate/ Recurring Deposit/Laghu Bachat
Yojna account in the name of Minor son/daughter
Master/Miss…………………………………………
born on ……………………………………………

I do hereby give my consent to your opening SB/FD/KY/DC/RD/LBY account in the name

of my Minor son/daughter Master/Miss…………………….
………………………………. to be operated upon by either myself as father and natural guardian or my
wife Mrs…………………………………………………. As mother and guardian for the benefit of the Minor. All
operations on the said account by my wife as such guardian will be binding on me and the above
named minor.

Yours faithfully,

(Signature of the Minor’s father)

I agree to undertake that I will operate the account as stated above, for the benefit of my Minor
son/ daughter.

(Signature of Minor’s mother)

JOINT ACCOUNT
Accounts in the name of two or more individuals are called Joint Accounts.
Such accounts can be opened by two or more individuals for all type of deposits.
Account opening form should be signed by all the joint account holders in presence of Bank
official.

17
 Instructions for operations on the account should be obtained in any one of the following
manner, suited for the type of joint account and needs of the customers.
Either or Survivor
Both of us jointly or by survivor
Both of us jointly.
Former or Survivor.
Instructions for operations in the account can be revoked by any one of the joint account holders
at any time. In such cases future operations to be allowed only under joint signatures of all the
account holders.
Operational instructions get automatically terminated on the death, insanity or insolvency of any
one of the account holders.
All joint account holders should sign the mandate letter or a power of attorney if they want to
delegate powers in favour of a third person to operate on the account even though the operative
instructions are “Any one of us or Survivors” etc.
ANNEXURE ‘A’

Place__________________
Date:__________________
To,
The Manager
UCO Bank,
________________ Branch.
Dear Sir,
Request to open term deposit a/c in our names.

In continuation of our application of date to you to open in our names a

________________ A/c at your branch, we hereby issue and record our consent, request and
authorisation that the Bank may, on receipt of a written application from Shri/Smt
___________________________ the former/latter/the first/second named out of us or either or
survivor of us or anyone or survivors or survivor of us, in its absolute direction and subject to such
terms and conditions as the Bank may stipulate and without reference to any of the other
depositors amongst us, (a) grant a loan/advance against the security of the term deposit held in
our joint names, or
(b) make premature payment of the deposit together with interest due, to the former/the
latter/the first/second named of us/either or survivor of us/any one of us or survivor(s) of us etc.

This letter is to be considered and held as an integral part of the set of account opening
forms in respect of our above mentioned deposit A/c.
Yours faithfully,
1)______________________
2)______________________
3)______________________
(To be obtained in case the depositors are/is illiterate or do not know the language of the letter.)
The contents of the above letter have been explained by me to the signatories of the letter
(Mr…………………………………………………….) in language known and understood by them.
Date……………………. …………………………
(Signature)

18
 ACCOUNTS OF ILLITERATE PERSONS

All types of deposit accounts(except current account) can be opened in the name of illiterate
persons provided they are properly introduced.
Contents of the account opening form and rules of the deposit account must be explained in
vernacular to the depositor by the introducer (who should be a literate person) and a declaration
to this effect must be obtained from the introducer and prospective account holder in Bank’s
standard form .
Thumb impression of depositor should be obtained in account opening form and specimen
signature card in presence of introducer and Bank official. (For males left hand thumb impression
and for females right hand thumb impression should be taken and so stated below the thumb
impression).
Passport size photographs of the depositor(s) should invariably be obtained which should be
attested by a branch official
Withdrawals from the account are to be permitted only when the depositor calls personally at
the Bank, along with his pass book.
Joint account of an illiterate person with another illiterate or literate person may be opened
on a “jointly or survivor” basis or “former or survivor” basis (Illiterate being former).
Joint account of an illiterate person with another illiterate person (who is closely related) may
be opened even on “Either or survivor” basis, provided necessary declaration is taken.
Cheque books should not be issued to illiterate account holders.

ANNEXURE
Place:………………….
Date:………………….
The Manager,
UCO Bank,
…………………….. Branch.
Dear Sir,
Re: Request to Open a Joint Savings Bank A/c, in the
name of ……………………………………. and
………………………………………. on “Eitheror Survivor” basis.

We wish to place on record our intention to have a Joint Savings Bank A/c with you in the name
of ourselves styled as above on condition that the account will be operated by either of us or
survivor. We further confirm having understood the rules and regulations of the Bank in force in
regard to the opening of such accounts. We hereby agree to keep the Bank indemnified from any
liability, loss or damage whatsoever that may be caused to the Bank at any time arising out of its
allowing us operations in the account in the manner aforesaid.
Yours faithfully,

…………………………………
(LTI/RTI OF …………………..
…………………………………)
…………………………………
(LTI/RTI OF …………………..
…………………………………)
19
The contents of the above declaration have been explained by me to the aforesaid illiterate persons
viz.
Mr./Mrs……………………………………….and………………………………………………………………..) in the language
known and understood by them.
(Signature of a witness)

1) Operation of Accounts by Old & Incapacitated Persons:

Please be guided by instructions contained in Para 11.9, page 67 of Manual of Instructions on
deposits Vol. IV, Part-I.

2) Opinion of IBA in case of a person who can not sign due to loss of both hands:
Opinion obtained by the Indian Banks’ Association from their consultant on the question of
opening of a bank account of a person who has lost both his hands and could not sign the
cheque/withdrawal form is as under:
“In terms of the General Clauses Act, the term “Sign” with its grammatical variations and cognate
expressions, shall with reference to a person who is unable to write his name, include “mark” with
its grammatical variations and cognate expressions. The Supreme Court has held in AIR 1950 –
Supreme court, 265 that there must be physical contact between the person who is to sign and
the signature can be by means of a mark. This mark can be placed by the person in any manner. It
could be the toe impression, as suggested. It can be by means of mark which anybody can put on
behalf of the person who has to sign, the
mark being put by an instrument which has had a physical contact with the person who
has to sign”.

3) Providing banking facilities to Visually impaired persons:

Banks should ensure that all the banking facilities such as cheque book facility including third party
cheques, ATM facility, Net banking facility, locker facility, retail loans, credit cards etc. are
invariably offered to the visually challenged without any discrimination. The branches should
render all possible assistance to the visually challenged for availing
the various banking facilities.
Guidelines framed by IBA based on the judgement of Chief Commissioner for Persons
with Disabilities.
Indian Banks’ Association has framed operational guidelines for implementation of its member
banks on providing banking facilities to persons with disabilities. Banks should adopt/follow the
operational guidelines meticulously.

4) Opening of accounts in the name of minors with Mothers as guardians:

Banks may open accounts in the name of minors with Mothers as guardians provided they
take adequate safeguards in allowing operations in the accounts by ensuring that the minor’s
account is not allowed to be overdrawn and that they always remain in credit. In this way, the
minor’s capacity to contract would not be a subject matter of dispute.

6) Legal Guardianship Certificate issued under the National Trust Act,1999 empowering
the disabled persons with autism, cerebral palsy, mental retardation and multiple
disabilities:
The National Trust for the Welfare of Persons with Autism, Cerebral palsy, Mental Retardation

20
and Multiple Disabilities (the Trust) had stated that a question has been raised as to whether
the banks and the banking sector can accept the guardianship certificates in regard to
persons with disabilities issued by the Local level Committees set up under the National
Trust for the Welfare of persons with Autism, Cerebral palsy, Mental Retardation and Multiple
Disabilities Act,1999.
The above Act was specifically passed by the parliament in order to provide for appointment of
legal guardians for persons with disability that is covered under the said Act. The above Act
provides for appointment of legal guardians for persons with disability by the Local Level
Committees set up under the Act. The Trust has opined that a legal guardian so appointed can
open and operate the bank account as long as he remains the legal guardian. It may also be
noted that the provisions of Mental health Act,1987 also allowed appointment of Guardian by
District Courts.
The matter was examined in consultation with the Indian banks’ Association. Who concurred with
the above views expressed by the Trust. Banks are therefore advised to rely upon the
Guardianship Certificate issued either by the District Court under Mental health Act or by
the Local Level Committees under the above Act for the purposes of opening/operating
bank accounts. Bank should also ensure that our branches give proper guidance so that the
parents/relatives of the disabled persons do not face any difficulty in this regard.

GENERAL GUIDELINES FOR OPENING OF DEPOSIT ACCOUNTS.

Following formalities/documents and papers are to be obtained from the depositors while
opening a deposit account.
a. account opening form:- appropriate account opening form is to be obtained from
depositor dully filled in.
b. specimen signature card:- signatures of the account holders is to be obtained on the
appropriate specimen signature card and to be kept in the safe custody.
c. photograph:- photograph of the account holder is to be obtained in all accounts as per
recent guideline of vigilance department. The photograph should not be older than six
months. Two copies of phonographs are to be obtained, one of which would be kept along
with AOF and another with the specimen signature card. For saving bank account holder
third photograph may be pasted on the pass book. Further photograph should also be
obtained of:-
(i) Power of attorney holder in case the account is being operated by a duly appointed
power of attorney.
(ii) Of a person who is operating account under the mandate of account holder
(iii) The guardian in case it is a minor’s account and is opened under guardianship
(iv) All persons who are authorized to operate the accounts in case of institutional
deposit accounts.
(v) Pardanashin women
(vi) Person who is joint account holder with staff member However photograph may
not be obtained in the following cases.
(i) staff members
(ii) banks and local authorities
(iii) government departments
(iv) borrowal accounts
ADDITIONAL DOCUMENTS:
21
INDIVIDUAL ACCOUNT : Declaration ‘A’ on the reverse side of D-1(Revised)
JOINT ACCOUNT – 1) Signature of all joint account holder 2) Declaration on ‘B’
HUF – 1. Signature by Karta in AOF. 2) Joint Hindu Family letter ‘F’ (A) to be signed first by Karta
and all adult co-parceners 3) specimen signature card and specimen signature cum indemnity to
be signed by Karta.

SOLE PROPRIETORSHIP – (other than SB Account)

1) Signature by Sole proprietor in his personal capacity
2) Declaration (c) in individual capacity
3) Specimen signature card as the proprietor.

PARTNERSHIP FIRM –(other than SB Account)

Partnership letter – A-5
Signature by all the partners
Copy of partnership deed
A certified/authenticated copy of the certificate of registration
Declaration in Form ‘F’

LIMITED COMPANIES – PVT. & PUBLIC LTD. CO.

Certificate of incorporation
Memorandum of Association
Articles of Association
Board Resolution
Declaration in Form ‘G’
Certificate on commencement of business (for public Ltd. Co.only)
List of Directors
AOF, specimen signature cum indemnity, specimen signature card to be signed by persons
authorized.
NB: It should be noted that the directors of the company are well-known. Chairman and directors
are personally known to Manager or responsible officer of the branch.
Branch should not agree to act as bankers to a company to be floated without prior approval of
Head Office.

CLUBS, SOCIETIES, ASSOCIATIONS, SCHOOL, ETC.

True copies of following documents :
Constitutions/Bye-laws
Certificate of Registration
A copy of the resolution
In case of co-operative societies approval of Registrar of Co-operative Societies to open the
account in the bank
A copy of resolution, certified by the Secretary, authorizing the opening and operation of the
account.
Declaration in Form ‘D’

TRUST ACCOUNT

22
a) Trust deed
Certificate of Registration under Local Public Trust
A resolution signed by all trustees

EXECUTORS & ADMINISTRATOR ACCOUNT

Original Probate letter with
Certified copy of Will/Letter of Administration.

PAN/GENERAL INDEX NUMBER.

With effect from 1.11.1998, PAN/GIR number should be obtained in the following deposit
accounts.
(i) on all saving banks deposit accounts
(ii) on all current deposit accounts
(iii) on all FDR accounts- in case it is issued in cash and amount exceeds Rs.50,000/-
Note:- No PAN/GIR No is required in case of RD account, LBY, UCO Laxmi Yojana.

Note:- in case no PAN/GIR allotted to the account holder or he is not income tax assessee in such
a situation a declaration in form no 60 or form no 61 in duplicate are to be obtained. The branch is
to send copies of these forms to the income tax authorities obtained upto half yearly closing
within one month thereafter.
Special watch on new deposit account

Branches should have a special watch on all the new deposit account opened. A cognizance should
be taken when huge deposit and withdrawals are made in such accounts. Such transactions must
be subject to the verification.

5. KNOW YOUR CUSTOMER

Banking business consists of mobilizing of resources, and deploying the funds so mobilized.
During the course of this work, we come across many individuals/ entities of different
characteristics. Further because of the wide network, banking channels are also being used by
undesirable people to transfer money earned/collected from anti-social activities like drug
trafficking & terrorist activities. In order to curb such activities Financial Action Task Force (FATF)
has given recommendations on Anti Money Laundering (AML) Standards and on Combating
Financing of Terrorism. These standards have become the international benchmark for framing
regulatory policies on anti money laundering and combating terrorism finance. It is expected that
all countries and financial institutions comply with the standards laid down by FATF to strengthen
the international financial relationship. Those countries which have not adopted the above
standards are designated as “Non Cooperative Countries”.
In India, “The Prevention of Money Laundering Act” was enacted in 2002, and Reserve Bank of
India has given detailed guidelines to be adopted by financial institutions on customer
identification. Further the guidelines popularly known as “Know Your Customer” (KYC) This
procedure also enable banks to know/understand their customers and their financial dealings
better, which in turn help them manage their risks prudently.
Banks are expected to formulate policies to identify their customers based on the following
main parameters.
23
  Customer Acceptance Policy
 Customer Identification Procedures
 Monitoring of Transactions and
 Risk Management.

For this purpose a “customer” consists of,

a person or entity that maintains an account and/or has a business relationship with the bank;
One on whose behalf the account is maintained (i.e. the beneficial owner);
beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers,
Chartered Accountants, Solicitors, etc. as permitted under the law ; and any person or entity
connected with a financial transaction which can pose significant reputational or other risks to the
bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

Customer Acceptance Policy:

Here it mainly consists of steps/ procedure to be followed by financial institutions to avoid
opening of accounts in fictitious or benami names, identification of Politically Exposed Persons
(PEP), knowing the expected turnover of the customers, his financial & social status and arrive at
suitable risk factors, the documentation required and to open accounts of those who meet the
criteria and are able to furnish the necessary documents. Further Banks are expected not to open
accounts of persons/entities known to have links with criminal activities.

Customer Identification Procedures.

Banks have developed various procedures based on which the identity and residential status proof
can be verified. In the case of individuals in addition to introduction, it is essential to verify the
identity and address by means of sufficient documents acceptable to the bank. In the case of legal
entities, banks should insist on documents by which it can verify the legal status of the entity (ii)
verify the identity of the person purporting to act on behalf of the legal person/entity is so
authorized (iii) understand the ownership and control structure of the customer and determine
who are the natural persons who ultimately control the legal person.

Monitoring of Transactions:
Banks have developed a suitable monitoring system depending upon the risk sensitivity of the
account. In this procedure Banks pay special attention to all complex, unusually large transactions
and all unusual patterns which have no apparent economic or visible lawful purpose. Banks have
prescribed threshold limits for a particular category of accounts and pay particular attention to
transactions which exceed these limits. Banks pay specific attention to large value transactions
that involve large amounts of cash inconsistent with the normal and expected activity of the
customer as very high account turnover inconsistent with the size of the balance maintained may
indicate that funds are being 'washed' through the account.
Branches are required to report cash deposits & withdrawals of Rs 10,00,000/ & above as well as
all transactions of suspicious nature to Regional Offices.
Banks should issue DD/TT/MT/PO for Rs 50,000/ & above only by debiting customer’s account &
not against cash. Whenever the amount exceeds Rs50,000/ the bank should insist upon PAN
number of the applicant. In Mumbai if cash is tendered Rs.10000/- and above the IT PAN No. of
applicant should be mentioned on the application form.
Some Suspicious activity indicators:
Customer is reluctant to provide details/documents on frivolous grounds.

24
The transaction is undertaken by one or more intermediaries to protect the identity of the
beneficiary or hide their involvement.

Large cash transactions.

Size and frequency of transactions is high considering the normal business of the customer.
Change in the pattern of business transacted.
The internal monitoring system of the Bank is developed with an inbuilt procedure for reporting of
such transactions and those of suspicious nature to Regional Office on a fortnightly basis.

Risk Management
The bank should ensure that an effective KYC programme is put in place by establishing
appropriate procedures and ensuring their effective implementation. The staff at all levels should
be apprised and trained to notice suspicious transactions.
All accounts of customer should be put through KYC norms and at least one photograph of the
customer should be kept on Bank’s records.

Diluted KYC Norms:

Where a customer does not anticipate turnover beyond 100,000 p.a and where his balance at any
point of time is not expected to go beyond Rs 50000, banks may relax the KYC norms regarding
submission of documents, with an undertaking that whenever the account goes beyond the above
limit, the customer will furnish sufficient documents to satisfy the full KYC norms.
The banks are required to verifying customers' identity and address by asking them to submit
documents that are accepted as relevant proof.
Mandatory details required under KYC norms are proof of identity and proof of address. Passport,
voter's ID card, PAN card or driving license are accepted as proof of identity and proof of residence
can be an electricity or telephone bill or a letter from the employer or any recognised public
authority certifying the address.

OTHER ASPECTS OF KYC.

To prevent the possible misuse of banking activities for anti-national or illegal activities, the RBI
has given various directives to banks:
Strengthening the banks' 'Internal Control System' by allocating duties and responsibilities clearly,
and periodically monitoring them.
Before giving any finance at branch level, making sure that the person has no links with notified
terrorist entities and reporting any such 'suspect;' accounts to the government.
Regular 'Internal Audit' by internal and concurrent auditors to check if the KYC guidelines are being
properly adhered to or not by banks.
Banks must keep an eye out for all banking transactions and identify suspicious ones. Such
transactions will be immediately reported to the bank's head office and authorities and norms
shall also be laid down for freezing of such accounts.
KYC guidelines were issued by RBI under section 35 (a) of the banking regulation act, 1949 & any
contravention will attract penalties under the relevant provisions. Guidelines are also applicable to
foreign currency transactions.
The official in charge of Deposit department will prepare the checklist for each deposit holder at
the time of opening new account and will make profile of the customer which is to be up dated
yearly basis or when significant changes are recorded. The profile should contain the following
• Introduction
25
• Whereabouts
• Credibility
• Credentials
• Status
• Occupation/ profession
• Source of funds

IMPORTANCE OF KYC
1. To determine and record the true/ bonafide identity of the customer.
2. To get Protection under section 131 of ni act.
3. To minimize frauds.
4. To check misappropriation.
5. To weed out undesirable customers
6. To prevent money laundering.
7. To check Increased cross border transactions.

ACCOUNT OPENING
While opening any deposit account the official should ensure that he has obtained
• Introduction
• 2 passport size photographs.
• Specimen signatures in presence of official.
• Mode of operation.
• Proof of residence.
• Details of a/cs with other banks.
• Nomination.
• PAN
• In case of company: certificate of incorporation/ memorandum and articles of assn./
resolution by board etc.
• Registration of firm/ partnership deed.
• Passports, armed forces id cards, id cards issued by state and central govt. for self
introduction.
• Additional information
• Employment details, name of employer, job specification, length of service etc.
• Details about source of funds and annual income.
• Assets owned.
• Personal details: qualification, marital status and other enquiries.

INTRODUCTION of the A/c

• To get protection u/s 131 of NI Act.
• Fictitious/Benami accounts checked which help in tax- evasion.
• To prevent fraud.
• To ensure that the account holder is a fit person to whom a cheque book can be issued.
26
INTRODUCTION BY WHOM
• An existing a/c holder whose a/c is satisfactorily operated for the last six months.
• Any respectable member of the public well known to the branch.
• Any permanent member of bank in his personal capacity only.
• Valid passport.
• Military persons- introductory letter signed by Commanding Officer and verification of Identity
card.

INTRODUCER
Normally the introducer should come to the branch.
If he does not come, send a letter of thanks with acknowledgement due. Caution to be exercised
for operation of the account till acknowledgement is received.

Customer Identification Procedure

Features to be verified and documents that may be obtained from customers

Features Documents
Accounts of individuals Identity:
- Legal name and any other (i) Passport (ii) PAN card (iii) Voter’s Identity Card (iv) Driving
names used licence (v) Identity card (subject to the bank’s satisfaction) (vi)
Letter from a recognized public authority or public servant verifying
the identity and residence of the customer to the satisfaction of
bank
-Correct permanent address Address Proof / Location
(i) Telephone bill (ii) Bank account statement (iii) Letter from any
recognized public authority (iv) Electricity bill (v) Letter from
employer (subject to satisfaction of the bank)
( any one document which provides customer information to the
satisfaction of the bank will suffice )
Accounts of companies (i) Certificate of incorporation and Memorandum & Articles of
- Name of the company Association (ii) Resolution of the Board of Directors to open an
- Principal place of business account and identification of those who have authority to operate
- Mailing address of the the account (iii) Power of Attorney granted to its managers, officers
company or employees to transact business on its behalf (iv) Copy of PAN
- Telephone/Fax Number allotment letter (v) Copy of the telephone bill

Accounts of partnership firms (i) Registration certificate, if registered

- Legal name (ii) Partnership deed (iii) Power of Attorney granted to a partner or
- Address an employee of the firm to transact business on its behalf (iv) Any
- Names of all partners and officially valid document identifying the partners and the persons
their addresses holding the Power of Attorney and their addresses (v) Telephone
- Telephone numbers of the bill in the name of firm/partners
27
firm and partners
Accounts of trusts &
foundations (i) Certificate of registration, if registered (ii) Power of Attorney
- Names of trustees, settlers, granted to transact business on its behalf (iii) Any officially valid
beneficiaries and signatories document to identify the trustees, settlors, beneficiaries and those
- Names and addresses of the holding Power of Attorney, founders/managers/ directors and their
founder, the managers/ addresses
directors and the beneficiaries (iv) Resolution of the managing body of the foundation/association
- Telephone/fax numbers (v) Telephone bill

6. VARIOUS TYPES OF DOMESTIC DEPOSIT ACCOUNTS

a. Demand deposit accounts.

1). saving bank deposit account.
2). current deposit accounts.
3). deposit at call.

b. Terms deposit accounts.

 Fixed term deposits
 FDR
 FDR under kuber yojana
 Deposit certificates
 Friend- in -need deposit scheme
 Flexible fixed deposit scheme
 Two way deposit scheme
 Special deposit scheme for senior citizen

2) Recurring term deposits.

7.SAVINGS BANK ACCOUNT

Savings deposit” means a form of demand deposit which intended for savings for future where the
depositor is not sure of how much they can save every month. They may also withdraw amounts
according to requirements. Saving bank accounts are subject to the restrictions as to the number
of withdrawals permitted by the bank during any specified period; if number of withdrawals
exceeds certain number, banks will recover incidental charges

Who can open the SB a/c?

• An individual – literate or illiterate
• More than one individual jointly
• Minor – By Natural Guardian or By Guardian appointed by Court.
28
 • Minor – above 10 years of age.
• HUF – other than for trading activity.
• Govt. departments ( a copy of authorization letter to be retained)
• District Development Authority
• DRDA, Integrated Tribal Dev. Agency.
• KVIB, JRY funds held by Zilla parishad or Grampanchayat.
• Societies registered under SR Act, 1860.
• Institutions exempted from payment of Income – Tax
• Companies permitted to not add the word Ltd or Pvt.Ltd to their name u/s 25
• SHG (Regd or un regd)
• Farmers Club/Vikas Volunteer Vahini ( VVV)
• Clubs, Associations, Charitable inst.
• PCS
• DWACRA.
• Any institutions permitted by RBI for rendering social or economic assistance to weaker
sections of the society.

Who cannot open the a/c?

• Any Trading or Business concern.
• Municipal corporation/committees.
• Industrial Development Authorities.
• State Electricity Boards
• Panchayat Samities
• State Housing Board
• Water and Sewerage/Drainage Boards
• State Text Book Publishing Corporations / Societies.
• Metropolitan Development Authority
• State/Dist level Housing Co-op Housing Societies.
• Any political party.
• Other banks including RRB, Co-operative Bank, LDB.

FORMS/DOCUMENTS REQUIRED FOR ACCOUNT OPENING

Account Opening Form for Individual/s - DS1 A (combined)/for others D-1 Revised
Specimen signature card
Two Passport size photographs (of authorised operator/s)- Three, if the account is to be operated by
thumb impression
PAN/GIR No. or Declaration in form60/61, if the depositor is not Income Tax assessee.
In case of Minor’s account birth certificate issued by municipal corporation or Gram panchayat.
Alternatively declaration in form DS 1C can be obtained.

29
Vernacular signature indemnity letter (D43)- in case depositor signs in vernacular(other than
Regional Language, Hindi or English)
Documentary evidence of “Date of Birth” is compulsory.
Annexure II Ref: CHO/SUA/5/2007-08 dated 16/04/2007

CLUBS, SOCIETIES, ASSOCIATIONS, SCHOOL, ETC.

True copies of following documents :
 Constitutions/Bye-laws
 Certificate of Registration
 A copy of the resolution
In case of co-operative societies approval of Registrar of Co-operative Societies to open the account in
the bank
A copy of resolution, certified by the Secretary, authorizing the opening and operation of the
account.
Declaration in Form ‘D’
TRUST ACCOUNT
 Trust deed
 Certificate of Registration under Local Public Trust
 A resolution signed by all trustees

EXECUTORS & ADMINISTRATOR ACCOUNT

 Original Probate letter with
 Certified copy of Will/Letter of Administration.

INTRODUCTION
Account must be introduced by a person known to bank or maintaining an account for a minimum
period of 6 months. Introduction should not be obtained as a mere formality. It should be ensured that
the introducer knows the prospective customer.
Banker from his own independent enquiries should satisfy himself that the prospective person is the
genuine person.
A valid passport can be accepted as adequate identification.

NOMINATION
Nomination facilities available to all Savings Bank Depositors having deposits in their individual capacity
and not in any representative capacity or otherwise. The same should be obtained on back side of Form
DS-1A. Such nomination can be made in favour of only one individual.
On the face of the passbooks/FDRs the position regarding availment of nomination facility with the
legend "Nomination Registered" should be mentioned.
Name of the Nominee in Pass Books / FDRs. Should also be added to the legend “Nomination
Registered”, in case the customer is agreeable to the same

OPERATIONS IN THE ACCOUNT

Deposits:

30
Besides deposit of Cash, cheque/demand draft/dividend warrant etc. can be accepted for collection. In
case of collection of cheque/demand draft/dividend warrant only instruments which are made out or
drawn in favour of the account holder are accepted. Such instruments which are endorsed in favour of
the account holder are not accepted in this account.
For deposit of cash, cheque, draft, dividend warrant etc., savings bank account deposit pay-in-slip(DS-2)
is used.
Withdrawals:
Amounts may be withdrawn from savings bank account by using – Cheque / withdrawal slips (DS-3)
or through alternate delivery channels like ,Visa Debit Card,M Banking or Ebanking.For withdrawals at
branch,the instrument has to be presented for payment along with the pass book by the depositor
himself. Under special circumstances, withdrawals up to Rs. 5,000/- can be allowed to a third party
who has submitted the withdrawal slip along with the pass book, provided the person is known person
and the branch officials are satisfied about his identity.
A withdrawal slip may be paid within a period of maximum two working days following the date on
which the withdrawal has been drawn.

DO’s:
a) The customer has to sign the relative Account Opening Form
b) Joint accounts may be opened by two or more persons. Clear instruction to be taken in the
instruction column whether the a/c is to be operated jointly or singly by either or survivor/former or
survivor.
c) Cheque and Cash to be deposited in the bank should be handed over at the respective counters
and no individual outside the respective counters have any authority to receive.
d) Maximum number of withdrawal allowed without any service charge is 50 per half year.
e) Account holder should ensure that while issuing cheque sufficient balance is maintained in the
account. Cheques issued and dishonoured due to insufficiency of funds/irregularity in drawing will
attract service charge and penal provision.
f) Mutilated, post dated, stale and irregularly drawn cheque as also cheques containing extraneous
matter will be returned unpaid.
g) Withdrawal must accompany the Pass book. In case the customer is unable to produce Pass Book
for genuine reasons special withdrawal slips (DS3A) should be used if payment is at all to be made.
Three continuous withdrawals on the strength of DS3A should not be entertained without updating of
the Pass Book
h) Fill every relevant column of account opening form-DS1A(combine) for Individuals & D-1 (Revised )
for other than Individuals.
i) At the time of issuance of Pass Book give Branch Full Address & Telephone No. of the Branch & Toll
free No compulsorily on face of the Passbook.
ii) At the time of issuance of cheque book put clause of sec.138 on face of cheque book if already not
printed.

DONT’s:

31
a) No account should be opened which is to be operated by a cross mark or signature by the hand of
another person.
b) More than one SB account can’t be opened by an individual without special consent of the Bank
c) Guardian will not be allowed to operate the minor’s account when minor attains majority.
d) Withdrawal slips are not to be issued to third parties.

MINIMUM BALANCE :
Following amount of minimum balance is to be maintained, below which the depositor has to pay
service charge.
Metro Urban S/U Rural
With cheque facility (indivdls) 1000 1000 500 250
(others ) 1500 1500 1000 250
Without cheque facility 500 500 250 100
Pension a/c with che.facility 250 100 100 100
Pension a/c without che fac 50 50 50 50

PAYMENT OF INTEREST :
W.e.f. 1.4.11 Bank pays interest @ 4.00% on half-yearly basis and credited twice to the account in the
month of Jan. and July for the period July to Dec. and Jan. to June respectively.
Interest is calculated on the daily balance.
NO INTEREST TO BE PAID IF
i) An account is closed within 3 months of its opening.
ii) Interest calculated for the relevant half year comes out to be less than one rupee.
Additional interest of 1% shall be payable on the staff account provided the account is in the name(s) of
-
Member or retired member of Bank’s staff either singly or jointly with any other member/members of
his/her family.
Spouse of the deceased member or deceased retired member of Bank’s staff.
An association or fund members of which are members of staff. Staff should give declaration that
money deposited belongs to him and name of the staff member should appear as first name.

INOPERATIVE ACCOUNT:
Account with no operation for continuous period of two years is termed as ‘Inoperative Account’. Such
accounts are transferred to Inoperative Accounts Ledger.

TRANSFER OF ACCOUNT:
Savings Bank Account can be transferred, at the request of the depositor, from one branch to another
branch of the bank, free of any charge.

CLOSURE OF ACCOUNT:
The account holder wishing to close account should make the request for closure in writing on a plain
paper. Interest upto previous month is calculated and credited to the account and charges, if any, are
recovered from the account. Thereafter the account is closed by asking the depositor to draw the entire
balance using cheque/withdrawal slip. Unused cheque leaves, if any, must be collected from the
depositor.
32
Operation of Bank Accounts by old/sick/incapacitated customers:
For those customers who cannot a be physically present in the Bank to withdraw money from their
account or sign/put thumb impression on cheque/withdrawal slip a proper record should be created on
the back of the instrument by the branch official along with 2 witnesses while obtaining
signature/thumb impression/toe impression and separate receipt should be obtained against payment.

Facilities to Visually Challenged:

All banking facilities including cheque book facility including third party cheques, ATMs, net banking,
locker, retail loans, credit card, etc., should invariably offered to the visually challenged without any
discrimination.
Legal Guardianship Certificate issued under the National Trust Act,1999 empowering the disabled
persons with autism, cerebral palsy, mental retardation and multiple disabilities

To rely upon the Guardianship Certificate issued either by the District Court under Mental Health Act or
by the Local Level Committees under the above Act for the purposes of opening / operating bank
accounts

SERVICE CHARGE:
Charges for additional debit entries in S.B. A/cs.
Free debit entries permitted No. per half year 50

Charges for additional debit Per addl. Entry Rs.10/-

entries
No charge shall be levied if the balance in the account is maintained above Rs.25000/=
Incidental Charges for Accounts not operated for 1 year
Balance Rs.1000 or more half yearly Nil

Balance < Rs.1000/- > Rs.50 half yearly Rs.50/-

Balance below Rs.50/- *available balance and a/c to be closed under advice to
customer.
* After giving notice entire balance to be appropriated & account closed
Charge for not maintaining Minimum Balance
SB with cheque facility
SB with cheque facilty Per quarter Rs.150/- (Rural Br.-Rs.100/-)
SB without cheque facilty Rs.100/- Per quarter
SB pension Sr.Citizen a/c with
cheque facilty Rs.150/-per quarter (Rs.100 in rural)
SB pension Sr.Citizen a/c without
cheque facilty Rs.100/-per quarter
Current a/c Rs.450 per quarter
Note: default in non maintenance shall be reckoned on average monthly balance in the
account.Charges for sr.citizen are not to be levied for the first default.The depositor to be
advised to make good the gap failing which applicable charges will be levied.

33
 Charge for closure of a/c within 12 months
Savings Bank Rs.200 (Rs.100 rural)
Current For firms and cos Rs.500 .00for others Rs.250.00
Charge for issuance of cheque book
MICR & non MICR Per leaf Rs.3/-(including multicity cheques)
Free Chq. Leaves in ½ year
Rural Branches No. of Chq. Leaves 20
Other Branches No. of Chq. Leaves 20
CA and CC Rs.3.00 per leaf(including multi city cheques)
Charge for issuing duplicate pass book with latest entry
Individuals Per occasion Rs.75/-(rural Rs.50.00)
Others than individuals Per occasion Rs.100/-
Charge for attestation of customer's signature on documents (per signature attested)

Individuals Rs.75/-
Other than individuals Rs.100/-
Charge for addition/ deletion of name/change in operational instructions/ recording of power
of attorney in accounts of individuals (other than deceased A/c)
  Rs.100/- per occasion
Charge for change in constitution/ operational instruction/ authorised signatory/ recording
power of attorney in accounts other than individuals
  Rs.250/- per occasion
Charge for stop payment of cheque (per instrument)
Other than Rural branches Rs.75/- per cheque Max.Rs.500/- per lot
For Rural Branch Rs.50/- per cheque Max.Rs.300/- per lot
Chrges for ATM Card
Issuance of New ATM Card Nil
Annual fees/renewal charges Nil

Issuance of duplicate ATM Card Nil

Issuance of New Pin Nil

ATM Transaction charges  
i)Cash withdrawal & Per occasion our Bank's ATM – free
Balance inquiry
  First 5 transactions (including nonfinfncial )in any other
ATM in one month-Free
  6th transaction onwards in any other ATM Rs.20/-
POS transaction at petrol pump Service charge @2.5% of transaction value or Rs.10
and railway counter whichever is higher.

34
 Transaction abroad
Cash withdrawal through Visa Rs.100+ 2% of the currency conversion charges per
enabled ATM transaction
Balance enquiry Rs.25.00
Charge for standing instructions (per transaction)
Same branch and in same name per transaction Nil
Same branch but in different per transaction Rs.25/-(individual) Rs.50 (others )
name
Involving another branch per transaction Rs.25/-(individual) Rs.50 (others )+
Remittance and postage charge
Charge for insufficiency of funds Per occasion Rs.50/-
to carry out standing instructions

GENERAL GUIDELINES:

 As per IBA guideline bank reserves the right to take steps to get the accounts closed if frequent
return of cheques for want of funds is observed.
 While depositing the cheques for credit to the SB a/c. for collection should be handed over to
the branch after crossing them.
 Instruments such as cheques, DD and Dividend/interest warrants will be accepted for credit of
an account only when the account has been properly introduced and such instruments must
be drawn in favour of the account holder only and not endorsed to him/her.
 For the accounts operated by thumb-impression, the depositor must personally visit the Bank
along with the pass book to withdraw the money.Pass Book and cheque book are very
important documents. At the time of receiving cheque book, the account holder should count
the cheques therein and draw the attention of the bank if any cheque is missing therein. Any
loss must be brought to the notice of Bank.
 Nomination is accepted in favour of a single individual only.
 Bank reserves the right to alter or add to these rules and such alteration and additions shall be
binding on the account holders.
 Branch Managers may apply discretion upto Rs.5000/- for payment of withdrawal in SB A/c to
third parties provided the third party (Presenter) is known to the branch official and the
depositor is well known to the branch and that such withdrawal by third party has by and large
been regular practice and is within the knowledge of the depositor.

8. UCO NO FRILL ACCOUNT

The salient features of the scheme are as follows :
INITIAL DEPOSIT FOR OPENING THE ACCOUNT AND MAINTENANCE OF MINIMUM BALANCE :

35
The account can be opened with a minimum initial deposit of Rs. 5/-. In case of cheque facility being
availed by the account holder, the minimum initial balance should be Rs. 250/-. In case of need, the
balance in the account may be allowed to go even below the minimum initial deposit and the account
may continue even with “Zero” balance.
Opening of Account under the scheme – The scheme is introduced in all metro, urban, semi-urban
and rural categories of branches without making any differentiation with regard to amounts of initial
deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank
Accounts.

ELIGIBILITY FOR OPENING “NO-FRILLS SAVINGS BANK ACCOUNT ” :

The eligibility for opening “No-frills” Account will be the same as that for opening an ordinary Savings
Bank Account. Persons above the age 10 and below 18 years and are able to read and write may also
open a minor no-frills savings account in his own name or jointly with any other person.

RESTRICTION OF NUMBER OF WITHDRAWALS/DEBIT ENTRIES IN “NO-FRILLS” ACCOUNT :

upto 25 debit entries in a half-year are allowed free in those accounts. In case the debit entries
exceed 25 during a half-year, charge will be levied @Rs.3/- per additional entry during a half-year.

CHARGES TO BE LEVIED :
For accounts opened with initial deposits of Rs. 250/- for having Cheque Book facility, in case the
balance comes down below the initial deposit even upto zero balance, usual charge for non-
maintenance of initial deposit shall be levied.
For standing instructions – no charge will be levied.
Collection of cheques and issuance of Demand Drafts/MTs are permitted in those accounts and
normal charges are to be levied for those services.
For accounts with cheque book facility, one cheque book of 20 leaves to be provided free of
charge in each year. Any additional requirement of cheques leaves during a year will attract a charge
of rs.2/- per cheque leaf.
No incidental and folio charges will be levied in these accounts.
All other charges for services as presently applicable for normal Savings Bank Account are to be
levied and recovered.

COMPLIANCE OF KYC GUIDELINES:

In case, the person concerned who wants to open the account is not able to produce any of the
specified documents, required to be verified at the time of opening of account to establish the identity
and address of the customer, the account may be opened for those persons subject to compliance of
the following:
Introduction from another account holder who has been subjected to full KYC procedure. The
introducer’s account with the Bank should be at least six month old and should show satisfactory
transactions. Photographs of the customer who proposes to open the account and also his address
need to be certified by the introducer. Or Furnishing any other evidence as to the identity and address
of the customer to the satisfaction of the bank.
However, while opening such accounts the customer should be made aware that if at any point of
time the balance in all his/her accounts with the bank (taken together) exceeds Rs. 50,000/- the total
credits in the accounts exceed Rs. 1.00 lakh in a year, no further transaction will be permitted in the

36
account until full KYC procedure in regard to verification of identity and address of the customer
through the documents as specified are complied with.

9. ZERO BALANCE SCHEME

TARGET GROUP
The target of customers is the salaried class.
• With average monthly pay of Rs’.10000/- and above, averaged over the last 10 months
Group salary accounts
• For the employees of a reputed employer in the organised sector, group salary accounts for
employees (minimum-30) will be allowed to be opened without insisting on the cut-off salary
requirement i.e., net take –home pay of Rs.10000/- or above
Opening of account
• All the Branches are eligible to open the account.
• The prospective account holder is to call at the branch, with his salary particulars duly
certified by his employer
• KYC Compliance
• The account will be fully KYC compliant as per rules.
ATM Cards
• Depositors under the scheme will be issued ATM/Visa debit cards free of charges.
• Withdrawals from the account will be allowed either by ATM Debit Card or by withdrawal
slips
Issuance of Cheque Book
• Not to be issued in normal course
• If account holder insists
• He has to request same in writing with his commitment to maintain the requisite minimum
balance as applicable for Saving Bank account in general
Nomination Facility
• Nomination facility will be insisted upon for such accounts as per RBI guidelines.
Overdraft Facility
• No overdraft will be allowed in Zero balance SB accounts.

10. TIERISED SAVINGS ACCOUNTS

UCO STAR
• Minimum Monthly Average Balance (estimated as average of daily balance25000)
• Charges on Non-Maintenance of Monthly Minimum Balance --Rs. 250/- per month
Multicity/personalized Cheque book ---upto 1 booklets free per quarter(20 leaves)., after that Rs. 3
per leaf
Sweep in/out facilty Above Rs.25000 in tranches of Rs.5000 sweep in and sweep out (Max period
179 days) with no premature pernalty clause
 PO/DD/TT/MT - upto Rs.10000/- free per day
37
 RTGS/NEFT - FREE
• Immediate Credit of Outstation Cheques
Up to Rs. 25,000 per occasion
Standing Instructions
Free transfer in the same Branch.
• Stop Payment Charges-Free
Charges for closure within 1 year Rs.250.00

11. CURRENT ACCOUNT

WHAT IT IS?
It is a type of account which is suitable for traders/businessmen. Traders and Businessmen have to
deposit and withdraw money from time to time in their account wherein he wants to use the
account for continuous transaction of deposit and withdrawals. Unlike in savings bank account, in
this account there are no restrictions on the number of transactions (debit).
In a dynamic economic situation, the current account deposit growth is an indicator of the
performance of a branch.

Who Can Open?

• One or more individuals.
• Proprietorship concern.
• Partnership firm – registered or unregistered
• Joint Stock Company.
• HUF
• Local Body (Municipality, NAC)
• Govt Deptt., /Corporations / Undertaking.
• Any Bank.
• Trust.
• Provident Fund Org.
• Others – Executors, Administrators, Liquidators, etc.

Who cannot open?

• Blind person.
• Minor.
• Illiterate.
• Any person whose a/c is to be operated by thumb impression, cross mark or signature by
hand of another person.
• Entities enjoying credit facilities (FB+NFB) at other banks without specifically obtaining a NOC
from the lending banks. (RBI)

INTRODUCTION OF ACCOUNT:
All the current accounts must be properly introduced:
38
By a person who is already known & acceptable to bank.
Manager and any other staff member
Existing introduced current account holder of good repute and having satisfactory dealing with the
bank. Minimum reasonable period, say 6 months from the date of opening his account has been
completed.
While opening new deposit account, introduction should be obtained not merely as a formality but
to enable proper identification of the person opening the account so that it would be possible to
trace the person later in case the account is misused.

In case the introducer does not personally call at the bank to introduce an account, the fact of his
having introduced a new account should be got confirmed by him in writing. Till the confirmation
is received, the bank should not collect cheque /draft through the newly opened account.

FORMS & DOCUMENTS REQUIRED:

COMMON DOCUMENTS:
Accounting opening Form (AOF) – D-1(revised). In case of Trust Account – D-1C. For individual AOF
- DS-1A (combined) should be used.
Declaration of having no account/accounts with any other bank and they do or do not enjoy any
credit facility with the bank. If credit facility is enjoyed the bank should be informed.
RBI has now directed that where the applicant is enjoying credit facility fund based or non fund
based from the banking system, the account will not be opened without specifically obtaining a No
Objection Certificate from the lending bank. It is to be carefully noted that non adherence to the
above discipline could be perceived by RBI to be abetting the siphoning of funds and such
violations would make the Bank liable for penalty under Banking Regulation Act 1949. Branches
may open current accounts of prospective customers in case no response is received from the
existing bankers after a minimum waiting period of a fortnight.
If the response is received within a fortnight, branch should assess the situation with reference to
information provided on the prospective customer by the bank concerned and are not required to
solicit a formal no objection, consistent with true freedom to the customer of banks as well as
needed due diligence on the customer by the branch.
D-43 – Vernacular signature indemnity letter
B-40 - Indemnity letter for collection of bills & cheques etc.
Photograph – Two copies are to be taken – one with AOF and the other with specimen signature
card.
PAN/GIR No. should be furnished in the AOF or declaration in Form No. 60 (not as IT assessee) or
Form No. 61 in duplicate (Having only agricultural income)
Specimen signature card

ADDITIONAL DOCUMENTS:
INDIVIDUAL ACCOUNT: Declaration ‘A’ on the reverse side of D-1(Revised)
JOINT ACCOUNT: 1) Signature of all joint account holder 2) Declaration on ‘B’
HUF: 1). Signature by Karta in AOF. 2) Joint Hindu Family letter ‘F’ (A) to be signed first by Karta
and all adult co-parceners 3) specimen signature card and specimen signature cum indemnity to
be signed by Karta.

SOLE PROPRIETORSHIP –
1) Signature by Sole proprietor in his personal capacity

39
 2) Declaration (c) in individual capacity
3) Specimen signature card as the proprietor.

PARTNERSHIP FIRM –
1. Partnership letter – A-5
2. Signature by all the partners
3. Copy of partnership deed
4. A certified/authenticated copy of the certificate of registration
5. Declaration in Form ‘F’
LIMITED COMPANIES – PVT. & PUBLIC LTD. CO.
 Certificate of incorporation
 Memorandum of Association
 Articles of Association
 Board Resolution
 Declaration in Form ‘G’
 Certificate on commencement of business (for public Ltd. Co. only)
 List of Directors
 AOF, specimen signature cum indemnity, specimen signature card to be signed by persons
authorized.
NB: It should be noted that the directors of the company are well-known. Chairman and directors
are personally known to Manager or responsible officer of the branch.
Branch should not agree to act as bankers to a company to be floated without prior approval of
Head Office.

CLUBS, SOCIETIES, ASSOCIATIONS, SCHOOL, ETC.

True copies of following documents:
Constitutions/Bye-laws,
Certificate of Registration,
A copy of the resolution,
In case of co-operative societies approval of Registrar of Co-operative Societies to open the
account in the bank is required.
A copy of resolution, certified by the Secretary, authorizing the opening and operation of the
account is to be taken.
Declaration in Form ‘D’

TRUST ACCOUNT
Trust deed
Certificate of Registration under Local Public Trust
A resolution signed by all trustees

EXECUTORS & ADMINISTRATOR ACCOUNT

Original Probate letter with
Certified copy of Will/Letter of Administration is required.

MINIMUM BALANCE
Category of branch Minimum Amount to be accepted & maintained in the a/c.
Individuals others
40
 Rural Rs.1000/- Rs2000/-
Semi-Urban Rs2000/- Rs2500/-
Urban Rs.3000/- Rs5000/-
Metropolitan Rs.3000/- Rs5000/-

RULES FOR OPERATING CURRENT ACCOUNT:

The following rules are made available to both existing and new current deposit account
holders. A copy should also be displayed in the branch’s notice board.
Change in the address, telephone number and/or constitution should be immediately
intimated to the bank.
Cash & Cheques should be deposited in the Bank at the specified counters only.
The customer should examine the pass book/statement of account and in case of any
discrepancy; it should be brought to the notice of the bank within SEVEN DAYS from the date of
receipt thereof. The bank will not be responsible for any loss arising from the negligence of
customers in this respect. (Bank becomes responsible to honour the cheque if there is wrong
credit and the customer issues the cheque relying on the wrong balance and before intimation of
wrong credit is received.)
If Pass Book/Statement of account is lost, duplicate can be issued on payment of service
charge.
Withdrawals are only by cheque.
Cheque Book if requested can be sent by registered post at the cost & responsibility of
account holder.
Cheques should be crossed before being deposited for collection.
Cheques should be drawn against clear funds.
Any dishonors due to account holder’s fault such as insufficiency of fund/irregularity in issuing
will attract service charge and penal provision as per N.I. Act Sec 138.
Mutilated, stale, post dated and irregularly drawn cheques, as also cheques containing
extraneous matter, are liable to be dishonoured. Any alteration to be authenticated by drawer.
Collection charge, folio charge and out of pocket expenses incurred will be debited to the account.
Bank reserves the right to send unpaid cheques, discharged bills, advices, letter etc. to account
holders by post and the evidence of their being so dispatched as contained in the Bank’s records
will be conclusive and binding upon the account holders concerned.
No interest will be paid
Bank reserves the right to close any account, in case of unsatisfactory operation in the
account or for any other reasons, after notifying the account holder and the Bank’s decision in
such matter will be final.
Bank reserves the right to modify/change these rules and such alterations and additions,
communicated by putting up a notice in branch premises, shall be binding on the account holder.

NOMINATION:
Nomination facility is available for Individual Account & Account of Sole Proprietorship firm.

INTEREST PAYMENT:
No interest to be paid on deposit accounts except as under:

41
 In case of balance lying in the current account standing in the name of deceased individual
depositor, interest shall be paid from date of death of the depositor, till the date of payment to
the person in whose favour the death claim is settled at the rate of interest operative in respect of
savings deposit applicable as on date of payment. This would also apply to sole-proprietor firm.

UNDESIRABLE ACCOUNT:
They are 2 types
i. Accounts with petty balances frequently running below the prescribed minimum.
ii. Cheques drawn without sufficient funds in the account frequently.
Such accounts may be closed after giving warning notices to the concerned.

INOPERATIVE ACCOUNT
Account with No operation for continuous period of two years is termed as ‘Inoperative
account’. Such accounts are transferred to Inoperative Accounts Ledger.

CLOSURE OF ACCOUNT
The account holder wishing to close the account should make a request for closure in writing.
His signature on the letter should be verified. Charges, if any, to be recovered should be debited to
the account. The account holder should be asked to draw cheque for the balance amount in the
account, which should be paid in the usual manner. Unused cheque leaves, if any, must be
collected from the account holder.

Service Charges  
  Revised rate w.e.f 1.5.2011

Ledger Maintenance chargesin Current/ CC / OD Accounts

Current A/c. /CC/OD accounts Account maintenance charges Rs.2.00 per entry minimum
Rs.50 max.Rs.1000 per half year. Subject to :
Average credit balance Free entries allowed
Upto Rs.25000/- Nil
Above Rs.25000/- upto Rs.50000/- 50
Above Rs.50000/- upto Rs.1 lakh 75
Above Rs.1 lakh upto Rs.2 lakhs 125
Above Rs.2 lakhs upto 5 lakhs 250
Above 5 lakhs All free
Incidental Charges for Accounts not operated for 1 year
Current
Irrespective of Balance half yearly Rs.150/-
Charge for not maintaining Minimum Balance
Current
Per quarter Rs.450/-
Charge for closure of a/c within 12 months
Current /CC For firms & Companies Rs.500.00,
For others Rs.250.00
Charge for issuance of cheque book

42
Current / Cash Credit (per leaf)  
MICR Per leaf Rs.3/-
Non-MICR Per leaf Rs.3/-
Charge for issuing daily/weekly statement of accounts One statement per month
Daily statement Rs.1000/- per year
Weekly statement Rs.450/- per year for repeat request Rs.2/-
per entry min.Rs.100/- per request
Monthly statement Once free,thereafter Rs.2/- per entry,min
Rs.100/- per request
Charge for issuing duplicate pass book with latest entry
Individuals Per occasion Rs.75/-
Others than individuals Per occasion Rs.100/-
Charge for issuance of duplicate interest certificate/balance certificate Rs.50/- Per occasion
Charge for attestation of customer's signature on documents (per signature attested)
Individuals Rs.75/-
Other than individuals Rs.100/-
Charge for addition/ deletion of name/change in operational instructions/ recording of
power of attorney in accounts of individuals (other than deceased A/c)
  Rs.100/- per occasion
Charge for change in constitution/ operational instruction/ authorised signatory/ recording
power of attorney in accounts other than individuals
  Rs.250/- per occasion
Charge for stop payment of cheque (per instrument)
Current Account
Other than rural branches Rs.100/- per cheque
Max.Rs.500/- per lot
For Rural Branch Rs.80/- per cheque
Max Rs.350/- per lot
Stop payment of cheque Rs.100 per chq max Rs.500
(for rural 80 and 350)
Charge for insufficiency of funds to carry out standing Per occasion Rs.50/-
instructions
Charge for issuance of Solvency Certificate (per certificate) Rs.250/- per lac Min. Rs.750/- and
Max. Rs.15000
Cash Handling charges (introduced from 1.07.08)
  Per day per account
upto 10 packets Free
Above 10 packets @Rs.10 per packet
Notes upto Rs.100 denomination Max Rs.10,000/-
Above Rs.100/- denomination @Rs.8 per packet
Max Rs.10,000/-
Service Charges mentioned above are inclusive of Service Tax and Education Cess component.

12. TIERISED CURRENT ACCOUNTS

43
 The most attractive “AUTO SWEEP FACILITY” without any penalty clause has been
imbibed into the tierised current account product UCO Classic and Classic Super. The other talking
point is free issuance of cheque books, free electronic remittance, free ledger folio charges & free
intersol charges to current account depositors (Classic & Classic Super) for reversing the
downward trend in current
Salient Features UCO CLASSIC UCO CLASSIC SUPER
Salient Features UCOCLASSIC UCO CLASSIC SUPER
Minimum monthly average Rs.75000 Rs.2.50 lacs
balance
Cheque book free Free
Immediate credit of outstation Upto Rs.25000 Upto Rs.25000
cheques
Remittances
Pay order Upto Rs.10000 free per day Upto Rs.10000 free per day above
above Rs.10000/- 25% disc Rs.10000/- 50% disc
RTGS/NEFT free Free
Ledger folio charges free Free
Other highlights
Visa Debit Card Free for life Free for life
Standing instructions Free within branch only Free within branch and outside
Balance certificate free Free
Auto sweep facilty Above min bal Rs.75000 in Above min bal Rs.250000 in
tranches of Rs.25000 sweep in tranches of Rs.25000 sweep in and
and sweep out (max period 45 sweep out (max period 45 days)
days) with no premature with no premature charges
charges
Statement of accounts free Free
Intersol charges free Free
Outstation cheque collection 50% of normal charges Free
charges
Charges for non maintenance of Rs.500 per month Rs.2000 per month
minimum monthly average
balance
If the above default occurs for Account will be downgraded Account will be downgraded to UCO
any 2 months in a fin. year to basic current account for a CLASSIC for a period of 6
period of 6 months and will months(subject to fulfilling the
be upgraded thereafter on norms) and will be upgraded
request
Cash handling charges free Free
Cash withdrawal
Local non base branch Upto 50000 free Upto 50000 free
No cash No cash payment/withdrawal allowed
payment/withdrawal to third party at non base br.
allowed to third party at Withdrawal limit of Rs.50000 to
non base br. Withdrawal customers through self cheques at
limit of Rs.50000 to non base branch
customers through self
44
 cheques at non base branch
Charges for closure of a/c within Rs.500 Rs.1000
12 months
E Banking Yes Yes

UCO SAHAJ FEE COLLECTION ACCOUNT SCHEME [Current Deposit/Savings Bank A/c]
(FOR SCHOOL S/ COLLEGES / UNIVERSITIES)
Target Group The Scheme is available for Govt-recognized educational institutes (schools,
colleges, universities) who hold Resident Indian Current Accounts or open new
Current Account with UCO Bank. However, SB Accounts can also be opened of
such institutes on production of an authorization letter to the bank from the
respective Govt Departments certifying that the concerned institute has been
permitted to open Savings Bank Account.
Purpose Collection of fees i.e., hassle-free deposit of fees at any of UCO Bank Branches
thereby reducing administrative problems of the educatinal institutions.
Type of Account Fee/Principal Collection Account (Current or Savings Bank Account) will be
maintained with UCO Bank Branch which will be called the base branch.
Available at All our branches spread across the country.
Mode of Anywhere Banking facility.
Transactions Intra-Bank Fund Transfer : From parents’ Account to Principal Collection
Account
Inter-Bank Fund Transfer : From parents’ Account to Principal Collection
Account
Intra-City and Inter-City : Cash Deposit
NEFT transactions NEFT charges of the respective Bank.
KYC Compliance Opening of accounts under the Scheme shall be subject to compliance of KYC
norms.

UCO SUVIDHA SALARY ACCOUNT (UCSSA) : [Scheme Code SB119]

The Scheme
Depositor need not to maintain the mandatory minimum amount of balance in
the account.
The Target Group  As a Corporate salary package, employer can go for centralized salary
disbursement alongwith other benefits of new current deposit products, UCO
CLASSIC, UCO CLASSIC SUPER.
 The customer groups are the regular confirmed employees of State/ Central
Govt, PSUs, Semi Govt Organizations, Public Ltd, Private Sector/Multinational
Organisation, Govt Educational Institutions (other than Bank’s own staff
members).
The Group Salary Accounts of employees from reputed Organizations
Group Salary (as mentioned above) comprising of minimum 20 employees will be allowed to
Accounts open UCSSA wherein the employees should have net take-home pay of
Rs 10,000/- or above.

45
  Employee will enjoy benefit of “Anywhere Banking” alongwith many add-on
Employee/ facilities like – overdraft facility in case of unforeseen financial requirements
Employer with benefits of new savings bank deposit product, UCO Star. In case of
Benefit employee’s transfer to any other centre, he can retain the same salary account
number for receiving salary credits.

 Employer can disburse salary across various centres in the country. Salary can
be uploaded by the base branch where the current deposit account/salary
disbursement account of the employer is maintained. The employer can
provide a soft copy (*as per the format and utility tool provided by HO, DIT and
the same is available at all the ZITCs) to the base branch. Facility for deposit of
various taxes, corporate e-banking can be provided. If accounts of 500 or more
employee are opened under the scheme, then corporate terminal with facility
for viewing of accounts and printing of statements etc can be provided. Bank
may consider installing an ATM at company’s site depending on business
feasibility.
The following two job cards provided by HO, DIT to ZITCs are pvovided to branches
for reference :
 UPLOAD OF FILES THROUGH TTUM
 UPLOAD OF SALARY FILES
Cheques, Interest/Dividend Warrants, Demand Draft/Pay Order etc can be
Collection/ deposited.
Clearing of

Nomination facility in Savings Bank Account will be insisted upon for such accounts.
Nomination
Facility
 Employee can also deposit cash from other sources in the account as in ordinary
Account Savings Bank Accounts.
Operations  Customer may withdraw fund through ATM card or withdrawal slip or cheque
(cheque book facility as per ordinary saving bank account/UCO STAR).
 For proper identification, Savings Bank Pass Book cover page to be stamped
“UCSSA” and issued to the employee/customer.
 Regular/Confirmed employee
 Minimum net take home pay Rs 10,000/- p.m. or above (during last 3 months)
 Minimum age – 21 years
 Remaining period of service – 2 years (to avail overdraft facility).

Passport/Pan Card/Voters Identity Card and ID Card of Employee, Proof of

Residence, Passport Photo (3 Nos), Salary Slip for last 3 months, employee’s
undertaking for OD facility, Employer’s letter/undertaking.
For corporate salary package, a standard agreement/MOU (in consultation with
Head Office, Law Department) with the company can be executed.
The scheme can be implemented by all our branches as per the demand of the
employer/employee since bank has attained 100% CBS.
The prospective account holder has to visit the branch of his choice or as fixed by
his employer, for opening UCSSA, as the case may be, with his salary particulars
duly certified by his employer and alongwith other documents as mentioned
46
above.
The customer has to fill up the usual Deposit Account Opening Form/Customer
Profile Form in the presence of the officer concerned at the branch. The extant SB
rules and interest rate will be applicable in the account except the minimum
balance requirement.
The employer may forward the employee(s) name to the Bank/Branch for opening
UCSSA as per the prescribed format.
The account will have to be fully KYC compliant as per rules.

ATM-cum-VISA Debit Card – Free

Internet Banking with utility bill payment facility – Free
Mobile Banking – Free
RTGS/NEFT – Available
Cheque Book/Multicity Cheques – 40 Leaves free p.a.
 Minimum net take home salary should not be below Rs 10,000/- consecutively
for 3 months prior to application for OD.
 Overdraft limited to 1 month of net take-home salary or Rs 1 lac, whichever is
less.
 Grant of OD limit/loan after 3 months of satisfactory account operation.
 OD adjustment before two years of retirement or till maintaining of the account
with bank, whichever is earlier.
 ROI : OD to be adjusted at Base rate + 5.50% p.a.
 Delegated Power : As per loan policy document.
 Documentation : A-1, A-47, A-3, Application in prescribed format for OD facility.
 No processing charges.
 Prior approval of FGM is required to include Private Sector/Public
Limited/Multinational Companies under the Scheme.
 Employer has to give a letter to the Bank for opening salary accounts of their
employees under UCSSA Scheme.
 For convenience of salary disbursement, the Employer should open Corporate
Current account with any branch of UCO Bank, as per rules of the Bank.
 Employer to inform the Bank in case any of the employees maintaining UCSSA is
transferred/resigns/suspended/terminated and should also undertake to adjust
the employee’s OD dues outstanding, if any.
 All other applicable charges remain the same as are applicable for Savings Bank
Account Customers (except the minimum balance requirement).

13. FIXED AND TIME DEPOSIT

47
 It is a deposit account which is suitable for depositor having surplus funds, which is not
required by him immediately (for a known period). He deposits such amount in this account for a
fixed period. By doing so he earns higher interest than that is available in SB/Current accounts
TYPES:
a) Fixed Deposit
b) Cumulative fixed deposit

Fixed Deposit : In this case simple interest is paid either at periodical

intervals(monthly/quarterly/half yearly/yearly) or at maturity. This is suitable for depositors
interested in regular income or wanting to park their funds for short duration.

Cumulative fixed deposit: In this case interest is paid on compounded principle and it is paid
with principal after maturity. Here interest is compounded quarterly. This is suitable for
depositors who are interested in maximising the yield on deposit and also who want to park
their funds for longer duration.

WHO CAN OPEN?

i) By an individual singly
ii) More than one individual in their joint names. The joint account may be
a) Either or Survivor basis
b) Former or Survivor basis
c) Anyone or Survivor basis
d) Jointly operated
iii) On behalf of minor – Natural Guardian, father or mother or by a guardian appointed by
court.
iv) By minor having attained the age of 10 years.
v) By clubs, societies, joint stock companies, associations, executors & administrators
vi) Illiterate person - account to be operated by his/her thumb impression.
vii) Senior citizen (Age is ≥ 60 years)

AMOUNT OF DEPOSIT
Minimum deposit amount is Rs.1000/-. However for payment of monthly interest minimum
deposit is Rs.10, 000/-

PERIOD OF DEPOSIT
Minimum period - 15 days
7 days (for deposit of Rs.15 lac & above)
Maximum period – 10 years
Deposit exceeding 10 years are allowed under orders of Court/Tribunal or protection of
minor’s interest. With permission from H.O. deposits more than 10 years can be accepted from
Govt. institutions, Govt. undertakings, Corporate bodies for their special needs such as
sinking/amortization funds.

RATE OF INTEREST
a. Interest rate as applicable from time to time should be allowed.
b. For senior citizens (Age ≥ 60 years) an additional interest is allowed .
48
 c. Staff Members are normally entitled to 1% additional interest. For retired staff members
in addition to 1% additional 0.25% interest is given in case of
deposits for a period of180 days to less than 3 years and 0.50% that for a period of 3 years
and above.
d. Interest may be paid periodically on monthly/qtly. /half yearly/yearly basis. In case of
monthly payment, discounted value is to be taken into consideration.
e. Incentive rates may be offered for individual Term Deposit for a minimum amount of Rs. 5
Crore with the prior approval of GM (T & IM).
f. Bank shall accept deposits for a minimum period of 7 days provided the
deposit amount is Rs. 15 lac and above.
g. Payment of interest for a period of less than 3 months is to be calculated on day’s basis
taking 365 days in a year. For more than 3 months interest is to be calculated on months
and days basis.

FORMS/DOCUMENTS REQUIRED
a) Account opening form
b) Specimen signature card
c) Furnishing PAN/GIR Number if amount of deposit is more than Rs.50,000/-
d) Form 60/61 if no PAN/GIR No. or Income is from agriculture only.
e) Two passport size photograph(three photograph if Illiterate)
f) In case of senior citizen age should be verified from LIC Policy/SSC certificate/Voter’s
Identity card/Passport/PPO/Any other document.
Satisfactory introduction of the depositor – Passport/Voter’s identity card/GIR No./PAN card
may be considered as adequate introduction.

TRANSFER OF ACCOUNT
Transfer of FDRs within the city should not be allowed.
Inter branch transfers should be effected once only.
While transferring the deposit along with Inter Branch Credit Note transferee branch must send.

i) Fixed Deposit Receipt(s)

ii) Specimen Signature Card
iii) Credit Advice – G-4 containing
- name & address of the depositor
- principal amount
- statement of interest paid and periodicity of payment

DUE DATE
Deposit will fall due for payment/renewal on the due date and interest on the deposit is paid
up to the previous date. However if the due date falls on Sundays or holidays the deposit is to be
paid on next succeeding working day and interest for intervening holiday is to be paid.
Customers are to be; advised at least 10 days before the maturity of the deposit in form
No. D-27 (or in its absence a suitable letter)

RENEWAL OF DEPOSIT
When a depositor wishes to continue the deposit with the bank, he asks for renewal of
deposit from the due date.

49
 If the deposit has become overdue i.e. after the due date, such deposit also can be renewed
as per the following:
i) If the deposit is overdue ≤ 14 days renewal can be effected retrospectively and interest as
applicable on the date of maturity will be allowed.
ii) If overdue period > 14 days, renewal will be permitted if depositor agrees to renew the
deposit for a further period of at least equal to the period the deposit has remained overdue. The
renewed term of the deposit will commence from the date on which renewal is done after the
depositor approaches the branch. The interest rate prevailing on the renewal date will be
applicable rate for renewed deposit.
For the Overdue period interest is to be paid at the rate prevailing on the date of maturity or on
the date of renewal, whichever is less.
iii) If the depositor is not willing to renew the overdue deposit for at least equal to the overdue
period interest for the overdue period may be paid at the savings bank rate as prevailing. Fraction
of the month in such cases may be ignored.
INTEREST MAY BE PAID TO THE DEPOSITOR OR CLUBBED WITH THE DEPOSIT FOR RENEWAL

PREMATURE EXTENSION
FDRs can be extended before maturity subject to (i) Extended period should be longer than the
remaining period of deposit (ii) Interest should be paid from the date of deposit till the date of
extension at rates applicable to actual period without penal rate as ruling on the date of deposit

CLOSURE OF ACCOUNT ON MATURITY

- Payment by account payee Pay Order/Bank Draft or by credit to the account if the
payment is more than Rs.20,000/-
- Before payment, FD receipt should be discharged by the depositor(s) clearly indicating
how the amount to be paid (either cash or credit to the account)

Maturity Value – CFD are to be stamped on its face with the legend “ Maturity value is subject to
TDS and its compounding effect”

PREMATURE CLOSURE
Premature closure can be made with 1% penalty in interest but no penalty is to be imposed on
premature closure of deceased FDRs paid to nominee/legal heirs.

LOAN AGAINST DEPOSIT

a. Minimum margin 10% ( For staff minimum margin is 5%) of the
Principal amount and accrued interest.
b. Interest Rates on Loan against TDR
Nature of Advance Rate of Interest
A Loan against own TDR 2% above Deposit rate
B Loan against 3rd. party TDR for loan not Base rate or 2% above Deposit ROI
exceeding Rs. 2 lacs. whichever is higher
rd
C Loan against 3 . party TDR for loan above Rs. 2 Base rate+ 1% or 2.50% above deposit
lacs. ROI whichever is higher
PAYMENT OF INTEREST IN DECEASED ACCOUNT
a) Where the depositor has died before the date of maturity of the FDR

50
 I. Claim made before maturity: - Rate of interest as prevailing on the date of issue,
applicable for the period the deposit remained with the bank without charging any
penalty.
II. Claim made after maturity: - Up to the date of maturity interest at contracted
rate. For the rest of the period i.e. from the date of maturity till the date of payment,
simple interest at the term deposit rate as prevailing on the date of maturity applicable to
the period the deposit actually remained with the bank beyond the date of maturity

b) Where the depositor has died after the date of maturity of the FDR
Up to the date of maturity interest at contracted rate. For the rest of the period
i.e. from the date of maturity till the date of payment, simple interest at the Savings rate
as operative on the date of maturity applicable to the period the deposit actually
remained with the bank beyond the date of maturity .

GENERAL GUIDELINES
a) Same depositor can open more than one fixed deposit account
b) Interest paid on FDRs is subjected to deduction of Tax at source. Wherever depositor
declares that he will not pay tax with the payment of this interest also 15H has to be
submitted.
c) Every depositor is entitled to have a fixed deposit receipt which contains date of issue,
name(s) of the depositor(s), period of deposit, date of maturity, rate of interest, and
nature of payment of interest.
d) In case of loss of deposit receipt duplicate FDR is issued after completion of formalities.
e) FDR is not transferable i.e. it cannot be endorsed in favour of another person.
f) Addition & deletion of names in a joint account is permitted.
g) Nomination facility is available in case of fixed deposit. The nominee must be an
individual.
h) Bank reserves the right to alter or add to these rules and such alteration and additions
shall be binding on the account holders.

14. RECURRING DEPOSIT ACCOUNTS

A Recurring Deposit is an account, where the account holder agrees to deposit a fixed sum of
money every month for a fixed period. Recurring Deposit Accounts are patronized mostly by Fixed
income groups who desire to save regularly a fixed amount for a certain period and to earn higher
interest than that of Savings Bank accounts.

Who can open?

(a) An individual in his own name
(b) More than one individual in their joint names.
(c) By a natural guardian on behalf of minor.
(d) Minor of 10 years age or over who can read or write, singly.
(e) By a Sole proprietary concern, Partnership Firms, Limited Companies, Clubs,
Associations, Trusts etc.
51
Forms / Documents required
(a) Account opening form
DS1A (Combined) - For individuals
D47 - For others
(b) Documentary evidence of “Date of Birth” is compulsory for all.
(c) Account should be properly introduced.

Instalments
Instalments should be in multiples of Rs. 5/-
Minimum – Rs. 50/- p.m.

Period of Deposits
Minimum period of deposit is 12 months maximum 120 months in
Multiples of 3 months. Period cannot be altered subsequently.

Maturity –
Maturity value of an RD A/c will be payable only 30 days after the last installment or on the expiry
of the period of contract, whichever is later irrespective of whether the last installment is paid
with penalty or not in subsequent months.

Payment of installment
Monthly installments are to be paid on or before the last working day of each month.

Penalty for late payment

Rs.2.00 per Rs. 100/- per month.

Closure before maturity

Premature closure of RD a/c is permitted at the written request of the depositor. Simple interest
with 1% penal rate is applicable in case of closure of the deposit account before the due date. If
the amount is withdrawn after the due date no penal interest is to be charged. Interest is
calculated on the basis of monthly products reckoned on minimum balance lying between the 10 th
and the last day of the month. In case the deposit account is closed before 3 months incidental
charge of Rs. 15/- is to be recovered. However, if the premature amount is kept in Fixed Deposit
for a period longer than the remaining period of the prematurely closed Recurring Deposit
account, no penal interest is to be charged.

Loan Facility
Loan upto 90% of the outstanding balance with a minimum of Rs.100/- for staff members upto
95% of the outstanding balance) is available with interest as applicable to loans against Fixed
Deposits (for staff members at the deposit rate).

15.SPECIAL DEPOSIT SCHEME FOR SENIOR CITIZENS

52
  Persons of more than 60 years are called Senior Citizens.
 Their date of birth is to be verified at the time of opening of new a/c or at the time of renewal
of deposit. Subsequent verification is not required.
 Documents from which the date of birth will be verified are SLC, LIC policy, Vote Identity Card,
PPO.Birth certificate, Passport or Any other document acceptable to bank.
 Incentive on rate of interest on FDR on or after 14.05.2001or renewal after 14.05.2001 is
available ( as per ROI issued time to time)
 For staff &ex-staff, Staff & ex staff senior citizen for TDR >180days it is 1.0 &1.25 respectively .
 Incase of ex staff senior citizen –INCENTIVE RATE- shall be equal to his terminal benefits +
Rs.10 lacs.
 Event of death of senior citizen the deposit automatic transfers to nominee
 No penal interest will be levied for premature with drawl of TDR on applicable interest rate.
 Free remittance facility is available up to Rs5000/- with out any commission provided the
remittance is routed through the SB/Current a/c of the senior citizen.

UCO TAX SAVER SCHEME:-

 It is issued in shape of KY/FDR for income tax payers.
 Rebate is available u/s 80 c of income tax act 1961.
 Maximum deposit should be up to 1 lac per year.
 Period of deposit should be 5 years or more to make the depositor eligible for deduction
u/s 80 c.
 Individuals or HUF or jointly two adults can open the a/c but benefit u/s 80 is only available to
the first holder.
 The lock in period is 5years from the date of opening of deposit. Premature closure will be
allowed only after 5years if the period of deposit is more than 5years.
 Rate of interest is as per HO guide lines .Staff , ex-staff, senior citizens, ex-staff senior
citizens will carry respective higher interest loads .It may be quarterly compounded incase under KY
or may be given on monthly basis at a discounted rate incase of FDR plain.
 Depositor to give PAN no or full address to be noted on KY/FDR receipt as the case may
be .AOF &SSC are to be stamped with remark ’’UCO TAX SAVER DEPOSIT SCHEME’, serially numbered
and kept in separate files .
 Nomination can be done during opening of a/c or at later stage.
 NOT available in deposits held on behalf of the minor.
 The TDR can be transferred from one branch to other branch of our bank only.
 No loan can be granted ,such TDR’ s are also not illegible to be pledged to secure a loan
 Duplicate TDR can be issued like normal TDR as per procedure of t the bank
 After death of the depositor the nominee is entitled the payment before or after the
maturity of the TDR. If no nomination facility is available ,then it will be paid to the legal heirs as per
banks guidelines
 If the interest amount I accrued is more than Rs.10, 000/- in a year the TDS will be
deducted. On submission of the form-15G or 15H, no TDS will be deducted.

16.NOMINATION FACILITY

53
Because Your family deserves your care
Introduction:
• It was introduced in banks w.e.f 29.03.1985
(The Banking Regulation Act was amended in 1984 and section 45ZA to 45ZF were added to the act
for providing nomination facility in banks.
In 1985, the Central Govt. made the “ Banking Companies (Nomination) Rules.

Banks provide nomination facility for:

Deposit Accounts
Safe Custody Articles
Safe Deposit Lockers

Banks do not provide nomination facility for:

Loan Accounts
Cash Credit Accounts , etc.

Type of Account:
• Accounts held in individual capacity only and not in representative capacity
• Minor Account:
P Yes for guardian operated accounts.
S No for self operated minor accounts.
Non-resident Accounts : Yes
• Joint Account: Yes.
Nomination should be made jointly by all joint account holders even if the account is operated by
either or survivor or former or survivor

Who can be a Nominee ?

Only Individuals.
Only one person can be appointed as nominee for a particular account.
A Minor can also be appointed as Nominee.
(In such case another adult ( not necessarily his/her guardian or relative) must be named to
receive the deposit on behalf of the minor, in case of the death of depositor(s) during the minority
of the nominee.
Non-residents including foreign national can be appointed as nominee.
However, on the death of depositor the deposit proceeds cannot be repatriated without obtaining
prior permission from Reserve Bank.
A lunatic cannot be appointed as nominee.

How to Nominate ?
• Nomination is required to be made in form DA-1
• Where the depositor is illiterate, the thumb impression must be attested by two
witnesses in form DA-1
• Separate nominations for different deposit accounts.
• Acknowledge Nomination & mark “Nomination obtained” . Regn No.

54
Name of nominee to be mentioned in pass book or receipt only on written request of depositor.
(RBI)

Cancellation or Variation of Nomination:

 It is cancelled/varation made on request by all in case of joint account.
DA-2 for cancellation; DA-3 for variation.
 In case of death of one of the joint depositors, the cancellation or variation can be made
under the signature of all surviving depositors/ depositor.

Renewal of Deposit A/c:

Nomination stands valid. No fresh nomination required.
Change in the style of the account:
Some addition/ deletion in the name of depositors is made, the nomination stands cancelled.
Payment to Nominee :
Nominee’s right to receive payment arises only on the death of the sole depositor or on the death
of all depositors in a joint account.
Nominee has the only right to receive the deposit proceeds on the depositor's) death.
He has no right to operate the account, to renew the same, to avail loan against it, to substitute
his name in place of depositor, or to add his name in the deposit.
• A Term Deposit can be paid ( at the request of the nominee ) before maturity. No penalty
need be charged in case of such foreclosure.
• Before paying to nominee ask for death certificate.
• Bank is discharged from liability by making payment to a nominee.
• Bank need not take into account any other notice or claim except the order of a
competent court.
The nominee does not become the owner of the proceeds by virtue of his right to receive
payment.
Any person having a right over the balance can claim it from the nominee.

Other Provisions:
• In case of pension accounts, there should be two types of nominations; one for payment of
pension arrears which is made under “Arrears of Pension (Nomination) Rule, 1983” and the other
for the SB a/c where the pension is credited every month which is made under Banking
Companies Nomination Rules, 1985.
• For Deposits under Capital Gains Accounts Scheme, 1988 a maximum of three nominations
under both schemes Account-A(Savings Bank), Account-B (Term Deposit) is permitted.
• Depositor is allowed to split his nomination for the purpose of nomination without any
penalty.
• If the nominee does not turn up even after 3 months from the death, a notice should be sent
by the bank to the nominee.

Nomination- Safe Custody Accounts

55
 Available only in single account.
Not available in joint account.
Not available in representative accounts.
only one person can be nominee.
where nominee is a minor, any other adult should also be appointed to receive the articles in the
event of death of depositor during the minority of the nominee.
• Separate nomination form for each account.

• Forms:
SC-1 for making nomination
SC-2 for cancellation of nomination
SC-3 for variation of nomination
• All other terms and conditions remain same as applicable to deposit accounts.
Nomination- Safe Deposit Locker
• More than one person can be appointed as nominee in joint names.
• Maximum number of nominees is limited to the number of joint account holders.

Delivery of Locker Contents :

Before permitting the removal of contents of locker by the nominee ( or by nominees along with
surviving hirers) an inventory of the content of the locker must be prepared.
• Sealed/closed packets, if any, need not be opened.
• It should be signed by the nominee(s); surviving hirers
• The nominee(s) and survivors are entitled for a copy of the inventory.
• In the event of death of one or more joint hirers the contents of the locker are
deliverable to the nominees along with the surviving joint hirer/hirers.
• In case of lockers with either or survivor clause or former or survivor clause, on event
of death of one of the hirers the survivor can take delivery of goods only along with the
nominee(s). In other words, where there is a nomination, the survivors have no right to take
delivery of the contents without the consent of the nominees.
• They also cannot change the nominations unlike deposit accounts.

Payment to nominee
• G-64 without affidavit/security
• Application in suitable claim format
• Identity of nominee has to be established
• Proof of death –Death certificate should be obtained from Municipality , corporation
or other proper authority
• Proper receipt of payment- Account payee cheques

Nominee is an agent
56
 • In nomination Act the nominee is treated as an agent for receiving money
• Legal heir can claim money from the nominee
• Bank on making payment to nominee will get valid discharge and it will be payment
in due course

17. SETTLEMENT OF DECEASED CLAIMS

Delay in settlement of claims of the nominee/ legal heirs of the deceased depositors by banks
cause considerable hardship. With a view to remove the hardship/delay faced by claimants RBI
had advised IBA to formulate a Model operational procedure ( MOP ) for settlement of claims of a
deceased depositors under various circumstances consistent with guidelines issued by them
.Accordingly IBA have reviewed the procedure followed by banks for Settlement of deceased
claims and formulated a simplified Model Operational Procedure and suggested formats for claim
settlements in respect of deceased a/cs with nomination or joint a/cs with mandates like” E or S”
and also other claims where the amount involved is with in the threshold limit fixed by banks for
simplified settlement procedure .IBA have sent a copy of the MOP and the formats for information
and adaptation and informed that RBI had advised banks to fix minimum threshold limits up to
which claims by legal heirs could be settled against Indemnity letter from claimants, without
insisting on legal representations, sureties etc. Hence banks have decided to retain Rs.50000/- as
threshold limit.

Further the guidelines for settlement of claims in respect of deceased locker hirers /depositors of
safe custody articles are currently under consideration of RBI.
In respect of claims BEYOND THE THRESHOLD LIMIT OF Rs. 50000/- sureties having worth of twice
the amount of claim either singly or jointly when ever the claim exceeds Rs.50000/-can be taken
while settling the claim.

The Banking companies (nomination) Rules, 1985 have been framed in terms of sections 45 ZA to
45 ZF of the banking Regulation Act, 1949.
Nomination facility simplifies the procedure for settlement of claims of deceased depositors .Banks
gets valid discharge by making payment of the balance outstanding in depositors a/c at the time of
his death or delivering contents of locker or articles kept in safe custody to the nominee .It is
therefore necessary that the customers are made aware of its advantages while opening of a/cs .It
should also made clear to the depositors that nomination facility does not take away the rights of
legal heirs on the estate of the deceased. The nominee would be receiving the stock from the bank
as a trustee of the legal heirs.
A joint a/c opened as E or S , A or S , F or S and L or S will permit the surviving a//c holders to have
unimpeded access to the credit balance in the a/c for withdrawal if one of the co-a/c holders dies.
Payment can be made to survivors in the normal course subject to the only rider that there is no
order from a competent court restraining the bank from such payment.

SOME CLARIFICATIONS ON PROVISION IN NOMINATION RULES:

57
  Nomination facility is intended only for individuals including a sole proprietary concern.
 There can not be more than one nominee in respect of single/joint deposit a/c.
 Banks may allow variation/cancellation of a subsisting nomination by all the surviving
depositors acting together. This is also applicable to deposits having operating instructions
E or S.
 It may be noted that in case of joint deposit a/c the nominee’s right arises only after the
death of all the depositors.

DOCUMENTS TO BE REQUIRED FOR SUBMISSION AND TIME LIMIT FOR SETTLEMENT:-

Deceased claim all ways settled on verification of the proof of the death of depositor (s),
verification of identity of nominee and /legal heirs as the case may be .Hence, the following
documents are required for settlement of a deceased claim:-.
 Proof of death of depositor (s) or heir (s) .
 Proof of identification of nominee where applicable such as Ration card .Election ID card,
PAN card or Passport or any other satisfactory proof of identification acceptable to bank or
proof of authority of legal heir (s) .The survivor (s) and nominee is/ are receiving the
payment from the bank as a trustee of the legal heirs of the deceased depositor.
 The claim should be settled within 15 days if survivor or nominee seeks the payment and
within 30 days if without survivor or nominee.
 Proper deceased claim application to be obtained from Nominee or guardian of a nominee
or survivors or Legal heirs.
 Stamped receipt from the claimant or declaration from guardian of a minor nominee to be
obtained.

SETTLEMENT OF CLAIMS IN VARIOUS TYPES OF ACCOUNTS:

1.SINGLE A/Cs:-

SINGLE SB/CA WITH NOMINATION: B/O in deceased s a/c to the nominee.

SINGLE SB/CA WITHOUT NOMINATION: O/S balance will be paid to all the legal heirs or any one of
them as authorized by all legal heirs.

SINGLE TD A/C ON MATURITY WITH NOMINATION:

The b/o will be paid to the nominee.

SINGLE TD A/C ON MATURITY WITH OUT NOMINATION:

The b/o will be paid to the legal heirs or any one of them as authorized by all the legal heirs

SINGLE TD A/C ON PREMATURE TERMINATION WITH NOMINATION: The nominee will have right
to seek premature termination of term deposit account as per terms of contract.

SINGLETD A/C ON PREMATURE TERMINATION WITHOUT NOMINATION:

Premature termination will be permitted on joint request by all legal heir (or any of them as
mandated by all the legal heirs.

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2. JOINT A/CS WITH OUT SURVIVORSHIP:-
JOINT SB /CA WITH OUT SURVIVORSHIP MANDATE WITH NOMINATION:
a . Death of one of the joint a/c holders, the b/o will be paid jointly to survivors and legal heirs of
the deceased joint a/c holders or any one of them as authorized by all the legal heirs.
b . Death of both /all joint account holders the b/o will be paid to the nominee.

JOINT SB /CA WITH OUT SURVIVORSHIP MANDATE WITH OUT NOMINATION:

a. Death of any of the joint a/c holders the amount o /s will be paid jointly to the legal heirs of
the Deceased account holder or any one of them as authorized by all the legal heirs and surviving
account holders against their joint claim.
b. Death of both/ all joint a/c holders the b/o will be paid to the legal heirs of all the depositors
or any one of them as authorized by all the legal heirs.

TD A/C ON MATURITYWITH NOMINATION WITH OUT SURVIVORSHIP:

a. Death of one of the joint a/c holders, the b/o will be paid jointly to survivors and the legal
heirs of the deceased joint a/c holders or any one of them as authorized by all the legal heirs.
b. Death of both /all the joint a/c holders, the b/o will be paid to the nominee.

TD A/C ON MATURITY WITH OUT NOMINATIONWITH OUT SURVIVOR SHIP ;

a. Death of one of the joint account holders, the b/o will be paid jointly to the survivors and the
legal heirs of the deceased or any one of them as authorized by all the legal heirs.
b. Death of both /all the joint a/c holders, the b/o will be paid to the legal heirs or any one of
them as authorized by all the legal heirs.

TD A/C ON PREMATURE TERMINATION WITH NOMINATION WITH OUT SURVIVORSHIP:

a. Death of one of the joint a/c holders, premature termination will be permitted against joint
request of the survivors and legal heirs or any one of them as authorized by all legal heirs .
b. Death of both /all the joint account holder, the nominee will have right to seek premature
termination of term deposit account .

TD A/C ON PREMATURE TERMINATION WITH OUT NOMINATION:

a. Death of one of the joint a/c holders, premature termination will be permitted against joint
request of the survivors and the legal heirs.
b. Death of both /all the joint account holders, premature termination will be permitted against
joint request by all the legal heirs of the deceased depositors or any one of them as authorized by
all legal heirs.

3 .JOINT A/C WITH MANDATE n SURVIVORSHIP LIKE- E or S / A or S

SB/CA WITH NOMINATION;
a. To be paid to survivor (s) in case of death of one of the depositors.
b. Death of both/all joint a/c holder’s b/o will be paid to nominee.

SB /CA WITH OUT NOMINATION:

a. Death of one of the joint a/c holders the b/o will be paid to survivors.

59
b. Death of both/all the a/c holders the b/o will be paid jointly to legal heirs or any one of them
as mandated by all legal heirs.

TD A/C WITH NOMINATION ON MATURITY:

a. Death of one of the joint a/c holders the b/o will be paid jointly to survivors.
b. Death of both/all the joint a/c holders the b/o will be paid to the nominee.

TD A/C WITH OUT NOMINATION ON MATURITY:

a. Death of one of the joint a/c holder’s b/o payable to survivors.
b. Death of both/all joint a/c holders b/o to be paid to legal heirs or any of them as mandated
by all legal heirs after maturity .

TD A/C PREMATURE TERMINATION WITH NOMINATION:

a. Death of one of a/c holders, premature termination permitted to survivors.
b. Death of both/all joint a/c holders, the nominee has to seek premature termination of TD a/c
as per the contract.

TD A/C PREMATURE TERMINATION WITH OUT NOMINATION:

A . Death of one of the joint a/c holders, premature termination permitted to survivors as per
terms of contract.
b. Death of both /all a/c holders, premature termination permitted against joint request by all
legal heirs or any one of them as mandated by all legal heirs as per terms of the contract.

4. JOINT A/C WITH MANDATE –F or S / L or S

SB /CA WITH NOMINATION:
a. Death of F or L the b/o paid to survivor.
b. Death of both, the b/o to be paid to the nominee.

SB/CA WITH OUT NOMINATION:

a. Death of F or L the b/o paid to survivor.
b. Death of both of Joint a/c holder, b/o to be paid to legal heirs or any one of them as
mandated by all the legal heirs.

TD A/C WITH NOMINATION ON MATURITY:

a. Death of F or L, b/o to be paid to survivor.
b. Death of both /all a/c holders, o/s balance to be paid to nominee.

TD A/C WITH OUT NOMINATION ON MATURITY:

a. Death of F or L b/o to be paid to survivor.
b. Death of both joint a/c holders, b/o to be paid to legal heirs or any one of them as
mandated by all the legal heirs.

TD A/C FOR PREMATURE TERMINATION WITH NOMINATION;

a. Death of F or L, survivor will seek the payment.
b. Death of both depositors, nominee will seek the payment.

60
TD A/C FOR PREMATURE TERMINATION WITHOUT NOMINATION:
a. Death of F or L, surviving depositor to seek payment.
b. Death of the joint depositors, the legal heirs or any one of the legal heirs as mandated by
all legal heirs will seek the payment.

INFORMATION ON SETTLEMENT OF TD A/C S :-

 Deceased claim can be settled and paid as per terms of contract in case of TD a/c either on
maturity or premature termination.
 Premature withdrawal of TD a/c s on settlement will not attract any penal charge.
 Interest on the maturity of the deposit will be paid at the contract rate.
 Incase of premature withdrawal the bank will pay interest at applicable rate with reference
to the period for which the deposit has remained with the bank with out charging penalty.
 Incase of deposit being claimed after the date of maturity interests will be paid as usual
amount on maturity plus interest for the period after maturity at applicable rate of SB
interest as on date of maturity.
 In case of Current Account: Interest at S.B. rate payable on the amount with the Bank from
the date of death till final settlement
 On request of the claimants, a TD a/c can be splitted into two or more receipts individually
in the names of claimants and should not be construed a premature with drawl of the term
depsirt,provided the period of deposit, provided the period and aggregate amount of
deposit

Death of a constituent can be known from the following sources :

 Newspaper
 Death Certificate
 Report from a reliable source

What to do after knowing the death of the constituent?

Proper noting can be made, letter to send to nominee and Further operations can be allowed
as here under:
In Individual and Proprietorship a/c– no cheque be passed ,
In case of Joint a/c with survivorship –fresh a/c to be opened and operation to be allowed to
the survivor.
Partnership – New A/C to be opened with fresh partnership deed by surviving partners and
operations allowed .No operation in old a/c or by the deceased partner .
Trust a/c - stop the account immediately
Ex & Admn a/c – surviving – yes, deceased – no
Ltd .co. – outstanding cheques be paid
Operated by PA – on death of the principal.- stop-a/c

IF CLAIM AMOUNT IS MORE THAN Rs50000

 Claim FormG-64 (Revised) duly filled in Anx-I to be submitted along with
 AFFIDAVIT – in Anx- II ,
 ENQUIRY /VERIFICATION REPORT– Anx-III,
 INDEMNITY Anx- IV,
 DECISION / REC OF BM – Anx-IIIA,
 NOMINATIONS – Anx- 7&8
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 If amount is more than 2 laces instead of G-64 use Annexure – 9 and annexure -1,2,& 4
 Succession certificate irrespective of amount is waived-except
i) disputes & Legal Heirs not joining in indemnifying
ii) bank has doubts in genuineness of claimant.

WHEN LEGAL PRESENTATION IS OBTAINED

Scrutiny of the Succession certificates required as regards to:
1. Name of deceased depositor. and balance
2. Account number
3. Empowers to collect the entire debt and interest
4. The amount mentioned in the succession certificate and the balance in the deceased
account is same or not

KEEPING OF RECORDS :
 Keep a register with following information
 Date of submission of claim
 Date of verification
 Date of preparation of credit reports on sureties
 Date of final settlement of claim

SCALE OF OFFICER FOR DEPOSIT(Rs) FOR LOCKER/SAFE DELIVERY OF

CUSTODY In Rs. PLEDGED GOLD(JEWELRY)
Scale-I 1,00,000/ 1,00,000/ 10,000
Scale -II 2,00,000/ 2,00,000/ 30,000
Scale -III 3,00,000/ 3,00,000/ 60,000
Scale -IV 5,00,000/ 5,00,000/ 2,00,000
Scale -V 10,00,000/ 10,00,000/ 3,00,000
Scale –VI 15,00,000/ 15,00,000/ 5,00,000/FULL*
Scale –VII/ED/CMD FULL FULL FULL
*Where the incumbent in TMG VI is posted as Circle Head, he shall have the full power for settling
claims.
Second-in-command in VL/EL branches are also empowered to settle claims according to their
Scale.
In case of legal representation, power of disposal of claims is vested with the Branch Manager
irrespective of his scale.

Settlement in respect of safe Custody/Lockers:

 Valuation certificate from the competent valuer about the inventory
 Inventories must be taken in the presence of the claimants, valuers, manager, one officer
of the bank, sureties signing the claim and other legal heirs or their representatives
Points to be noted:
 When the amount exceeds Rs 200,000/ in case settlement of accounts against court order
assistance to obtained from bank’s lawyer to ensure that the court’s order is carried out correctly.
 Succession certificate does not apply to the contents of locker. In case of locker letter of
administration is required from the competent court.

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  On removal of the contents of the locker the branch should obtain a letter from the
claimants acknowledging that he/she/they has/have received the contents of the locker
and the locker has/have been surrendered to the bank.
 In respect of Missing Persons- Claim less than or up to the limit of Rs.1.00 lac in respect of
missing persons may be settled only on the basis of FIR, Non traceble report issued by
police authorities

18. BASIC ACCOUNTING PRINCIPLE

1. ACCOUNTING CONCEPTS –

RECORDING STAGE REPORTING STAGE

a Business entity concept a Going concern concept
b Money measurement concept b Accounting period concept
c Objective Evidence concept c Matching concept
d Historical record concept d Conservatism concept
e Cost concept e Full disclosure concept
f Dual concept f Materiality concept

2. CONCEPTS
Concepts are the basic assumptions or conditions on which the service of accounting is based.
Conventions denote customs and tradition that have been accepted as a guide for the preparation
of accounting standard.

Cost concepts
a) Every business transaction is recorded in the books of accounts at cost price.
b) The machinery recorded in the books by that amount which is paid to supplier plus the
expenses bringing and installing the machinery which are necessary to put in working
order.
c) Fixed assets are kept at the cost of purchases and not their market value.
d) Every transaction is recorded with the present value and not any future value.

Money measurement concept

a) Every transaction that is recorded in the books of accounts must be measured in Terms of
Money.
b) All transactions are converted into a common form, which is money.
c) E.g. – Sales, wages all are converted in terms of money.
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 d) Health of a proprietor or Manager is not taken into the books although it may have a great
impact on overall business.
e) We do not include any inflation or deflation in the value of any asset.

Business Entity concept

a) Concept separates the entity of the proprietor from the business Transaction.
b) Capital contributed by the owner is a liability.
c) Business is an artificial person, and it is different from owner.
d) Any money withdrawn by proprietor is treated separately as drawings.
e) Profit is a liability while loss is an asset.

Realisation Concept
a) Concept tells us when the revenue is treated as realized or earned.
b) It is treated as realized or earned on that date when the property in the goods pass to the
buyer and becomes legally liable to pay.
c) No future income is considered.
d) Goods sold on approval will not be included in sales but taken at cost only.
e) Revenue recognition determines that the earning process should be either complete or near
completion.
Going concern
a) Concepts indicates that the business is a going concern and the transactions are recorded
accordingly.
b) If expenses incurred and its utility is consumed during the year then it is treated as expense.
c) Otherwise it is recorded as an asset.
d) Fixed Asset are valued at cost and not at market value.
e) Current Assets are valued at cost or the market value whichever is less.
f) Depreciation is provided based on total number of years of life of asset.
g) Balance of one year are carried forward to next year.
h) Reserves and provisions are created for any future liability.
i) Deferred Revenue expenditure are written off over a number of years.
j) It also helps investors as they can assume the life the business entity to be infinite.
Dual Aspect Concept

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a) Concept explains every Transactions has a double effect.
b) One is debit and other is credit
c) Eg. X starts a business with 50,000/- the business has an asset of Rs. 50,000 and it is liable to
pay the owner Rs.50,000/- as liability that is capital.
d) Every transaction has two aspects
e) The accounting equation is Assets = Capital + Liability
Matching Concepts
a) Concept explains that we have to match the income of a certain period with expenses of that
period only.
b) The term matching refers to the close relationship that exists between certain expired costs
and revenues realized as a result of incurring those costs.
c) Justification of the matching concepts arises from accounting period concept.
Historical Records Concept
a) In accounts usually past accounts are recorded.
b) This is based on assumption of realization.
c) Accounting involves the recording of business transactions that have taken place.
d) A trader purchases a business premises for Rs. 5,00,000/-. The amount due is paid to the
vendor and the business acquired that place. Now this transaction can be recorded in the
books. The business transactions are recorded as and when they take place , i.e. datewise.
This leads to preparation of historical records of all Transactions.
e) The future Transactions can hardly be identified and measured accurately.

Accounting Period Concept

a) It is assumed that the business will run for a long period, therefore accounts of each period are
recorded.
b) These actual periods vary, though a year is the most common interval because of established
business practice.
c) Some firms adopt the calendar year, some others the financial year of the government.
d) The custom of using the twelve month period is applied only for external reporting.
3. Main Conventions of Accounting
Accounting of full disclosure

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a) Entries are made such a way, that they provide honestly all information relating to the
activities of the business.
b) Records should not conceal anything from outsiders.
c) Secret reserves should not be maintained as per this convention.
d) Companies Act make ample provisions for the disclosure of essential information is Accounts.
e) Law prescribes the contents of Balance sheet and Profit and Loss Accounts.
Definition of Materiality
a) All material information must be recorded.
b) What is material depends upon the value of the item involved and the circumstances of
individual case of business.
c) Paisa is not recorded (insignificant item) separately.
d) The accountant does not record insignificant item separately.
e) If the combined total of any item is lesser than 10 – 15%, then they are insignificant.
Eg. A paper stapler costing Rs.30/- may last for 3 years, but efforts involved in allocating its cost
over 3 year period is not worth the benefit that can be derived from this operation.

Convention of Conservation
While recording transaction, all possible losses must be taken into considerations, while all
anticipated profits should be ignored.
a) This is called the Principle of Prudence.
b) Creation of provision for doubtful debts
c) Creation of contingency reserve.
Value the stock in hand at lower of the cost of market value.
Show the Joint Life policy at surrender value
Convention of Consistency
a) If a method is selected for recording purposes, it must be regularly followed in the future
also.
b) Whenever it is necessary to change the impact of such, change must be given separately.
c) Eg. If a straight-line method is chosen for depreciation, then it should be followed in the
future also.
d) If it is changed in future, the impact of this also shown in the accounts.
e) Inconsistency in the application of accounting methods might significantly affect the
reported profit and financial position.
f) Inconsistency also opens the door for the manipulation of reported income and assets.
g) The comparability of financial information depends largely upon the consistency with
which given events are handled in the accounting period year after year.

ACCOUNTS OF NON- TRADING ORGANISATION

INTRODUCTION

66
 i. There are some organization or institution that are engaged in rendering certain services
to the people, e.g. Educational institutions, sports club, public hospitals, charitable trusts
etc.
ii. Like trading organizations, their main aim is not to make profit but to render a particular
type of service to a certain section of people.
iii. Sports clubs, like the cricket club of India, render services to the cricketer.
iv. The Asiatic Society of Bombay is engaged in the promotion of literature by making
available various types of books, magazines etc. to the public.
v. The educational institutions run schools and colleges and thereby spread educational
activities in a particular area.
vi. These organizations are registered under the Public Trust Act or Society Act.

NEED FOR MAINTENANCE OF ACCOUNT

i. For rendering services to the Public, these organization collects money by way of
membership fees, tuition fees, subscription and donations etc from Public at large.
ii. Though they are non-profit making entities, they would like to know the results of their
activities at the year end.
iii. They would like to know whether their income during the year was enough to meet the
expenses.
iv. To have a proper control over the huge collections made, it is necessary to maintain books
of accounts.
v. This will reduce possibilities of misappropriation of funds.
vi. The final accounts of these associations are submitted to the Government agencies,
municipal authorities, Public Trusts etc.
vii. On the basis of these accounts grants may be made available to them to carry on their
activities in a better manner.
viii. The act also requires these organization to complete the accounts in a particular form and
submit these to them every year.
ix. Therefore, it is necessary for such organizations to maintain the accounts as required by
the Act.

BOOK OF ACCOUNTS
67
Non trading concerns maintains following books of accounts.
i. Cash book
ii. General ledger
iii. Journal
iv. Membership Register
v. Donation Register
vi. Property Register
Subsidiary, Registers, depending upon special features, e.g. students register, patients register
etc.

FINAL ACCOUNTS
Final Accounts of the Non Trading concern consist of –
i. Receipt and Payment Accounts
ii. Income and Expenditure Accounts
iii. Balance sheet.

RECEIPTS AND PAYMENTS ACCOUNT

i. This accounts show actual amount received and paid in cash.
ii. Cash includes cheques.
iii. These receipts and payments may relate to previous year, current year and subsequent
year.
iv. The receipts and payments may be REVENUE or CAPITAL.
v. The accounts starts with opening balance of cash and Bank.
vi. In short, this account shows actual receipts and Payments for the whole year.

INCOME AND EXPENDITURE ACCOUNT

i. This is nothing but a profit and loss account.
ii. Since the object of these associations is not to make profit, the name is changed from
Profit and Loss account to Income and Expenditure account.
iii. All income items are shown on credit side whereas all expenses are shown on debit side.
iv. The result of this account will be either Profit or Loss which is called surplus or Deficit for
the year.
v. Income and expenditure account shows income and expenditure for the current year only.
vi. It shows actual amount of income received and receivable for the year.
vii. Similarly, amounts paid and payable for the year will be shown on expenditure side.
viii. All capital receipts and payments are carried forward to the Balance Sheet.

BALANCE SHEET
i. It is a statement showing the position of Assets and Liabilities of the association on a
particular date.
ii. This is familiar to Balance Sheet of a Trading organization in which the capital of the
association is called “Capital Fund” or “General Fund”.

DISTINCTION BETWEEN RECEIPTS AND PAYMENTS ACCOUNTS AND INCOME AND

EXPENDITURE ACCOUNTS
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 RECEIPTS AND PAYMENTS ACCOUNTS INCOME AND EXPENDITURE ACCOUNTS
1 Classification
It is a real account It is a nominal account
2 Contents
It contains summary of actual It contains Income and Expenditure of a
expenses, receipts and payments of a particular period.
particular period.
3 Items Included
It includes capital as well as Revenue It includes only revenue items
items.
4 Opening and closing Balances
It starts with opening cash and bank There is no opening balance but ends with
balances and ends with closing cash and surplus or deficit for the year.
bank balance.
5 PERIOD
It shows all receipts and payments It shows incomes and expenditure of only the
during the year, irrespective of whether current year.
these pertain to the previous years,
current year or subsequent year.

ACCOUNTING FROM INCOMPLETE RECORDS ( SINGLE ENTRY SYSTEM)

SINGLE ENTRY SYSTEM
Single Entry system may be defined as any system which is not exactly the double entry system.
1) In other words single entry system consists of –
a) Double entry in respect of certain transactions such as Cash received from debtors,
cash paid to creditors etc.
b) Single entry in respect of certain transactions such as cash purchases, cash sales,
expenses made, fixed assets purchased etc.
c) No entry in respect of certain such as depreciation, bad debts etc.
2) Thus, a business is said to be using single entry system if it is not following completely the
principle of double entry, system of book keeping.
3) Kohler defines the single entry system as “A system of book-keeping in which, as a rule,
only records of cash and of personal accounts are maintained.
4) It is incomplete double entry, varying with the circumstances.

SALIENT FEATURES
1. Maintenance of Personal Accounts :- Usually under this system personal accounts are
maintained while real and nominal accounts are avoided on account of this reason.

MAINTENANCE OF CASH BOOK

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A cash book is maintained, which usually mixes up both the personal transactions and the business
transactions.
DEPENDENCE ON ORIGINAL VOUCHERS
- In order to collect the necessary information one has to depend on original vouchers.
- For example the figure of credit purchases may not be readily available.
- It may have to be found out on the basis of the original invoices received from the
suppliers.
- Similarly, the total figure of sales at the end of a particular period may have to be found out
on the basis of the invoices which have been issued by the business from time to time.
NO UNIFORMITY :- This system may differ from firm to firm as per their individual requirements
and conveniences.
SUITABILITY
- This system is suitable in case of small proprietary or partnership concerns.
- Limited companies cannot adopt this system on account of legal requirements.

LIMITATIONS
Arithmetic accuracy cannot be checked.
- In case of double entry system of book – keeping, Trial balance is prepared to check the
arithmetic accuracy of the books of accounts.
- This is possible because every transaction is recorded at two places.
- In case of single entry system, this is not done.
- Hence Trial Balance cannot be prepared and the arithmetic accuracy of books cannot be
checked.
- This increase the possibility of more frauds and misappropriation, as compared to the
double entry system of book-keeping.
TRUE PROFITS CANNOT BE KNOWN
- In the absence of complete information for sales, purchases and other expenses
- It is not possible to draw the Profit and Loss Account.
- Hence, the true profit or loss, made or suffered by the business cannot be known.

FINANCIAL POSITION OF THE BUSINESS CANNOT BE JUDGED

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In the absence of a true figure of profit and correct information about the assets and liabilities of
the business, the balance sheet cannot be drawn up to give a correct picture of the financial
position of the business on a particular date.

MAKES PLANNING AND DECISION – MAKING DIFFICULT

- The system does not provide accurate figures about the performance of the business and
its financial position.
- For example, separate figures of gross profit, net profit and sales are not available
- Similarly in the absence of any information about the cost of goods sold, the proportion of
different elements of cost of sales cannot be found out.
- In the absence of such information, it becomes difficult for the proprietor of the business
to know the reasons of his improving or deteriorating profitability and financial position.
- Thus, he is not in a position to compare, plan and take sound decision for the prosperity of
the business.
- Moreover it may be difficult for him to find the real value even of his deciding to sell the
goods

COMPUTATION OF PROFITS UNDER SINGLE ENTRY SYSTEM

The profit or loss in case of business maintaining accounts according to single entry system can be
computed by two methods.
i. Net worth Method
ii. Conversion Method
NETWORTH METHOD
- According to this method, the profit or loss made by the business is computed by
comparing the networth ( or capital) of the business on two different dates.
- For example, if the capital of the business on 1 st January 1992 was Rs. 80,000/- and it is
Rs.90,000/- on 31st December 1992.
- It can be said that the business has made profit of Rs. 10,000/- during the period.
Following adjustments are required for determination of the profit in case of this method.
ADJUSTMENT FOR DRAWINGS
- The proprietor may withdraw money from the business for his personal use.
- In the absence of any such withdrawal, the capital at the end of accounting period would
have been more by the amount of money withdrawn by him.

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 - Thus the amount of drawings should be added back to the capital at the end of the
accounting period to find out the true profit for that period.
ADJUSTMENT FOR CAPITAL INTRODUCED
- The proprietor may introduce further capital in the business during the course of the
accounting year. This will increase the capital of the proprietor at the
It is therefore necessary to reduce the amount of capital, by the amount of capital introduced by the
proprietor during the year, in order to ascertain the profit earned by him during the course of the
accounting year.

CONVERSION METHOD
- The networth does not provide a clear picture of the operational result of a business.
- It does not give information about sales, purchases, gross profits, operating expenses etc of
the business.
- As a result, neither a meaningful analysis of the financial statements can be done nor can
effective steps be taken to improve the financial position of the business.
- It will, therefore, be better to collect all such information from the books of accounts, and
other sources, which is necessary for preparing a “Trial Balance” of the business.
- This is done by preparing a Total debtors account, a total creditors account, a bills
receivable account and a bills payable account and payment and receipts accounts etc on
the basis of double entry.
- Accounts relating to different expenses, incomes, fixed assets and fixed liabilities and
outstanding, are also prepared with the help of receipts and payment accounts and
additional information available.
- Thus the closing balances of different accounts are found out and a Trial Balance prepared.
- Final accounts, can then be prepared in the usual way. Such a method of collecting
information as per the requirements of the double entry system of .

19.Banking Codes and Standard Board of India (BCSBI) /

Customer Service

72
Code of bank’s Commitment to Customers – Comprehensive Fair Practices Code
The spirit behind introduction –
To bring transparency in banking operations and to make customers aware about various policies.

Application of Code – To all the products and services e.g.,

1 Various deposit accounts
2 Loans / Overdraft / Guarantees
3 Pension / Remittances / Govt Transactions
4 Demat Account / Equity / Govt Bonds
5 Collection of Cheque / Safe Custody / Locker Facility
6 Third party instruments and investment products
7 Card products – credit / debit / ATM / smart cards etc
8 Indian currency note exchange facility
9 Foreign exchange service

Our responsibilities
1 To meet commitments and standards mentioned in the code for the products and services
we offer and procedures and practices we follow.
2 Dissemination of the code to customers :
(a) By providing a copy of the code to each new customer when they open the account.
(b) To provide a copy on request over the counter or by mail to existing customers.
(c) To have a copy of the code at every branch and on our website.
(d) Staff members should have relevant information about the code and put the same
into practice.

Transparency
Banks are required to display certain information in the branch e.g.,
1. Comprehensive notice board as prescribed by RBI (sent to every branch through respective
Zonal Offices)
2. Key interest rates of deposit and forex rates.
3. Minimum balance required to be maintained for savings / no frill account and penalty for non-
maintenance
4. Name of Manager, Address of Zonal Manager, Banking Ombudsman for redressal of grievance
5. Display of time for clearing cycle for local instruments

Availability of Information
The following information should be available with the branch :
1 4 Customer-centric Policies namely,
(a) Cheque Collection
(b) Grievance Redressal
(c) Compensation
(d) Collection of Dues and Security Repossession
2 Code of bank’s Commitment to Customers
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3 Citizens Charter for Currency Exchange Facility (HO Cir CHO/SUA/16/2009-10 dated 25-06-
2009)
4 Design and security features of all the bank notes (Manual of Instructions Vol I, Chapter V
[RBI website – Master Circular dated 01-07-2009 on Detection & Impounding of
Counterfeit Notes]
5 Time Norms for Common Transactions

Other Requirements
1 Branch should maintain a Complaints Register
2 Customer Service Committee at branch level should have atleast one Senior Citizen as its
member and must hold meetings every month.

Important :
Please note that all the policies, various schemes (deposits and loans) and banking Codes Service
Charges, KYC norms etc are hosted on our website and can be downloaded or seen from there.
______________

20. LOCKERS ( safe deposit vault)

Apart from accepting deposit & lending money , banks also provide a number of ancillary &
agency services. Safe deposit lockers and safe custody of articles are such type of services In case
of safe custody of articles position of banker is BAILEE and that of customer is BAILOR. While in
case of lockers bank is lessor and locker hirer ( customer ) is lessee. In other misc services the
bank is agent & customer is principal. LETTING OUT OF LOCKERS is a unique facility where bank is
required to know only the authorized persons to have access to (operate) the locker and not
necessarily to know what is in the locker. Lockers may be hired in the name of individual, joint
names, partnership firms , limited companies, Municipal or Public Corporations or fiduciaries such
as executors, administrators or legal guardians etc. Branch should maintain a record of
applications received from the intending hirers and may allot on first come first serve basis. 20%
of lockers should be kept reserve which can be allotted at the discretion of the manager to the
valued customers, Govt officers & other dignitaries. As per size & volume there are 10 categories
of lockers named type A to H , L-I and K & L with volume ranging from 469.9 cubic inch to
6296.51 cubic inch. The rent is different for rural /SU and urban / metro centers & to be
collected in advance
Type Rural/ SU Urban/ Metro
A 800 1000
B 900 1200
C &D 1500 2500
E 2500 3000
F &G 2750 3000
H & L-I 4000 4500
K& L 4500 5000
Above rates are effective from 01-05-11 .

Staff members are allowed to avail only one A type of locker at a concessional rate of 450/- &
550/- in rural / semi urban and Urban /Metro respectively. Staff concession may be extended to
74
retired / voluntarily retired /spouse of deceased staff member. Penalty will be charged after 3
months of due date @ Rs 50 per quarter or part thereof for A & B type Rs 250/- for C & above It
is also applicable for staff members /ex staff members Branches are to display a signboard to the
following effect in three languages, viz, Regional, Hindi and English which should be placed in the
locker room:
Before you leave, please check -
WHETHER YOU HAVE CLOSED YOUR LOCKER PROPERLY?
& ANY OF YOUR BELONGINGS HAS BEEN LEFT OUTSIDE?

Maintenance of record
G – 88 as an agreement to be obtained on non judicial stamp paper applicable in the
respective state as per state stamp act. Specimen signature on G 122 along with photographs of
locker holders. On the right side of G 122 specimen signatures of authorised person(s) to operate
the locker ( below the signatures of hirers ) to be obtained. But on the back side of G 122 only
hirer will sign. A pass word is obtained for each locker hirer separately ( i.e. if in joint names every
holder will give his separate pass word). This password will help in identifying the borrower in case
signature or photo is not being tallied for some reason. This password may be any word, number
or combination , as per the choice of hirer. Hirer to be advised not to disclose PW for safety
reasons. The PW will be noted at place mentioned in locker form/ specimen card.

Lockers Register (Form G - 126)

This Register should be maintained locker wise in serial order so as to facilitate locating the
details of the hirer from the locker number. All the details such as the name(s) of the hirer(s), their
addresses, operational instruction, rent paid etc., should be recorded. The name(s) ofthe hirer(s)
should be indexed in the Register accordfing to alphabetical order.

Register for Application for Lockers (Form G - 128)

All the applications received should be entered serially. All particulars such as name and
address of hirer(s), locker no., class of Locker, details of rent etc., should be carefully filled in.
Dates of renewal or release should also be recorded therein.

Renewal Diary (Form G - 127)

This should be kept monthwise and maintained meticulously. A month before the locker rent
expiry date, first Renewal Reminder Notice (Form G - 119) s should be sent to the respective
hirers. In case of renewal rent not paid in time a second Renewal Reminder Notice (Form G -
119A) should be sent. If no payment is forthcoming, a third Renewal Reminder Notice (Form G-
119B) should be sent and if rent is still not forthcoming, the fourth and final Renewal Reminder
Notice (Form G - 119C) should be sent under Registered cover at the recorded address of the
party. When the renewal rent is received, a Receipt should be issued in Form G - 120A. ppropriate
note should also be made in the Locker Register (G - 126) and Renewal Diary (G - 127)

Locker Key Register

The branch should also maintain a Locker Key Register. This should be maintained keywise to
lockerwise and lockerwise to keywise so as to facilitate tracing the number of Locker from the
key number and tracing the number of key from the Locker number. Moreover, when the locks of
the lockers are interchanged, such changes should be immediately recorded in the Locker Key
Register. It should be marked .Strictly .Private and should be kept in personal custody of

75
Custodian of locker cabinets. A suggested proforma of Locker Key Register is given in Annexure I
page 452 of Vol V Manual of Instructions .

Register of Daily Access to Hired Lockers (G -125)

Signature of the operator of Locker should be obtained in this Register. Date and time of
operation should also be recorded therein.

Reallotment of Vacated Lockers

A vacated Locker should not be let out to another hirer unless the inner mechanism of the
Locker has been changed by the manufacturers. For this purpose the branch should allow a
number of vacated lockers to accumulate and then request the agents of the manufacturers for
inter-changing the locks. This should be possible owing to the fact that all the Lockers are not let
out at one time.

Procedure when hirer left open

Branch should call the customer & ask him to check the contents and get a certificate in
writing. If hirer is not available & key is left in the locker , an inventory should be prepared in the
presence of asstt manager & any other officer and should be kept locked. The key should be also
kept in bank’s safe in joint custody. If neither the key nor the hirer is available, make inventory as
above and keep the contents in the safe custody vault.

Appointment of Attorney for locker operations

Any person hiring locker may appoint another person to operate the locker on his behalf.
Locker holder has to fill & sign form G 124 (on required non judicial stamp paper) in the presence
of bank’s officer & in the premises of branch. However a minor may not be appointed as attorney
in case of locker A general Power of Attorney is too broad and not specific enough to be
recognised for access to Safe Deposit Locker. The hirer should therefore, be asked to execute a
special Power of Attorney, granting the power of access to Locker and also mentioning the locker
number therein.
The signature of the Attorney should be recorded on the right side of Specimen Signature
Card below specimen signature of the hirer. The reverse side of the above Card (G - 122) should
contain only the hirer’s specimen signature. Wherever possible the photograph of the Attorney
should be obtained and pasted to the Specimen Signature Card. The photograph should bear the
signature of Hirer, Attorney and the Custodian of the locker cabinet/Asst. Manager. Regarding
appointment of Attorney, the following points should be borne in mind:
(1) When there is more than one hirer, all of them must join together in giving the
power of access to the locker to a third party. Instructions from one of the hirers deputing an
Attorney should not be accepted upon. However, authority vested in an Attorney can be revoked
by any one of the hirers singly,
(2) Similarly in case of locker rented to a partnership firm, all the partners must join in
appointing an Attorney.
(3) The appointment of an Attorney does not cancel the access authority of the existing
Attorneys, if any, previously appointed. Therefore, branch should preferably remind the hirer of
the others who have access at the time a new Attorney is appointed.
(4) An attorney cannot appoint any other Attorney unless there is an express provision
in the Power of Attorney authorizing him to do so.
(5) A minor should not be accepted as an Attorney.

76
 (6) An Officer or other employee of the bank should not be permitted to be Attorney for
Lockers.
(7) Fiduciaries such as Executors, Administrators and Legal Guardians cannot appoint
fiduciaries. Such fiduciaries are court appointees and as such they do not themselves have the
power of appointment. Consequently, they cannot delegate authority of access.
(8) Similarly, since Officers having access to lockers rented to Limited Companies,
Municipal Committees or such other Public Bodies and Associations etc., are appointed by
resolutions of Directors or other governing bodies, they cannot appoint Attorneys.
(9) Death, insolvency of hirer or any of the hirers revoke the authority given in favour of
a third party to have access to locker.
(10) An Attorney will not automatically get power to give instructions to the bank to break
open the locker if there is no specific provision to that effect in the original power of attorney.
(11) The hirer can at any time revoke the authority given by him to an Attorney. On
receipt of notice of revocation of authority, the bank should not allow the Attorney to have access
to Locker. His signatures should be cancelled on Specimen Signature Card and proper note to the
effect given therein.
(12) Any instruction given by telegram or over the telephone cancelling the Attorney’s
Power to have access to Locker should be immediately followed by written confirmation and until
such time the confirmation is received, access to the Lockers should not be allowed, at the same
time a letter should be written to the hirer to confirm his oral instructions by return mail.

Nomination Only in case of lockers more than one nominee can be accepted where locker is held
in the name of more than one person & mode of operation is joint. But in case of E or S and F or S
only one nominee is allowed as in case of single lockers .

Breaking Open a Locker

When intimation has been received from hirer(s) about loss of key, an application should be
obtained from hirer(s) requesting for breaking open the Locker. The charges for breaking open
the Locker should be realised from the hirer in advance and kept in Sundry Creditors Account. An
appointment should be made with the agents of the makers of lockers cabinet, to send their
mechanic to drill open the Locker in consultation with the hirer(s). Locker should be broken open
in the presence of the hirer(s), the Manager, Asst. Manager and Custodian of the locker cabinet,
and one respectable witness. A suitable remark about breaking open of Locker should be made in
Locker Register, Renewal Dairy and Specimen Signature Card. The lock and door of the Locker
which may be broken open, should be sent to manufacturers for repair. When the door and lock
are received back duly repaired by the company, the balance of deposit lying in Sundry Creditors
A/c after deducting company charge and our incidental charges of Rs. 100/- should be refunded
to hirer. The hirer should be informed, when the Locker has been refitted, to come and collect the
new key if the hirer still required the Locker. Where requested, the hirer may be allotted for a
temporary period of three months another Locker against payment of Rs. 100/-. For this purpose
one of the Lockers surrendered by another hirer may be let out pending replacement of the lock
of the Locker broken open. No Locker should be broken open without the written consent of
hirer(s). In no case should a Locker be allotted to be broken open or the lock be replaced by a
mechanic who is not a representative of the manufacturer of the cabinet.

Breaking Open of Locker Due to Non Payment of Rent

77
 In case of rent being outstanding for a very long period and all efforts to recover the
rent (such as sending of reminders on Forms No. G 119, G 119A, G 119B and G 119C) or to contact
the party fail, the matter should be reported to controlling office for necessary instructions. A
final registered and acknowledgement due notice should be sent to the hirer as per draft given in
Annexure II of manual of instructions VOL V page 453. This notice should give him one month
time to pay over due rent. If rent is not received then permission of controlling office, is
necessary to break open. It is advisable to wait some more time say a fortnight and then to make
arrangements with the agent of the manufacturers of locker cabinet for breaking open the
Locker. After the Locker is drilled open, the door and lock should be sent to manufacturers for
repair. All expenses incurred may be debited to Working Expenses Miscellaneous A/c pending
their recovery from hirer(s). A suitable remark about breaking open of the Locker, should be
recorded in Locker Register, Renewal Diary, and Specimen Signature Card.
In many cases it has been observed that when the parties who have hired the lockers
had to be broken open and fix a new locker at a considerable cost which is besides the loss of rent
which sometimes ranges between three to five years. Therefore it is advisable to deposit advance
payment of locker rent for period of 3 years from the Lockers holders. In case of those who opt
for annual payment of rent and default in payment, they should not be allowed to operate the
locker till the arrear rent is cleared. The locker should be broken open in the presence of the
Manager, the Asstt. Manager, the custodian and two respectable customers. Where it is found
difficult to get customers as witnesses it would be in order for the branch to take the services of
any two respectable citizens of the locality or the bank’s lawyers for bearing witness to such
events so far as the bank’s lawyer is concerned his charges would be required to be paid and
should be added to the dues of the defaulting hirers of the bank. After breaking open of the
Locker, a detailed inventory of the contents (including cash) should be made in triplicate and
signed in full by all the witnesses. If the Locker is found empty, it should be so stated in inventory.
Form of suggested inventory is given in Annexure III of Vol V page 455 & 456. The contents other
than cash should be kept in a packet which should be sealed and signatures of all persons
concerned put thereon. The cash if found in the Locker, should be credited to Sundry Creditors
Account for payment to hirer in due course. Full particulars should be stated in the relative
voucher under authentication of all the witnesses. The packet containing contents of the Locker
together with original copy of the inventory should be kept in safe custody for delivery to hirer in
due course. Second copy of the inventory should be sent to Controlling Office and third copy kept
in branch file.
A report of the action taken, the name of persons before whom the locker was opened
and a copy of the inventory should be sent to Controlling Office for further instructions. The hirer
may be allowed to remove the contents of the Locker on the paying up the arrears of rent, the
various expenses incurred in breaking open the locker and repair of lock of door and their refitting.
His acknowledgement should be obtained on the bank’s copy of the inventory prepared as above.
In case the Locker on being broken open is found empty, a further notice should be sent to hirer(s)
as per draft given in Annexure IV. However, if some items are found in the Locker, the next step is
to auction a portion thereof which may be considered sufficient to fetch an amount equal to bank
dues. In terms of clause 8 of Agreement, on reverse of Application Form (G-88) the bank has a
right to sell the contents of the Locker for realisation of rent and other charges. After obtaining
permission from controlling Office, arrangements should be made for auction. But before auctions
a notice should be sent to hirer(s) as per draft given in Annexure V. At the time of auction proper
list of bids of sales be prepared by the Manager and Custodian in the presence of two respectable
persons. If should be got signed by bidders. After the auction is over, the amount of sale proceeds

78
be appropriated towards the bank dues, retaining the balance, if any, in Sundry Creditors Account.
An intimation about the auction and the appropriation of sale proceeds towards the bank’s dues
should be sent to the hirer(s) at the address recorded with the Bank as per draft given in Annexure
VI. If the proceeds of auction are not sufficient to meet the bank’s charges, steps should be taken
to recover the balance amount from hirer(s).

Searches and Seizures of Lockers

Commissioner of Income Tax has been empowered by law to search any building or place
where he has reason to believe that secret documents, incriminating cash, jewellery etc. are kept.
Since one of the places where such incriminating items are usually kept is the Bank Locker , search
warrants are often issued by the Commissioner for bank lockers and vaults.
Search warrant, when issued, authorises one or more officers of the Income Tax Deptt to
carry out the search and seize, where considered necessary, gold & cash etc. This search warrant
will be issued under the signature of the Commissioner with date and office seal
and besides containing other information, will also include the following :
(a) the name of the officer(s) authorised to carry out the search;
(b) the name of the bank hiring out the Locker and its address;
(c) the name and address of person whose Locker is to be searched.
When such a warrant is presented to the concerned Bank Official that official is enjoined
by law to afford all facilities to the authorised officer(s) for carrying out the search. In this
connection 1he following points should particularly be noted:
(a) The search can be carried out at any time and not necessarily during the hours the bank is
open to the public.
(b) The officers of the Income Tax Department are provided with identity cards issued by the
Commissioner and the bank official can demand for production for these cards.
(c) No copy of search warrant will be given to the Bank Official as there is no provision in the
rules to do so. He is, however to go through the warrant and satisfy himself that it relates to his
bank and that it mentions clearly the names of the person(s) whose Lockers are to be searched. He
may also sign the warrant, in token of having read it, before returning it to
the authorised officer.
(d) The Bank Official has no obligation to contact the hirer and inform him about the search
as the Department itself will be doing this.
(e) The Authorised Officer(s) and the search party accompanying him have instructions to
offer themselves for search both before and after the search operation. This is to obviate the
possibility of any allegation that evidence was brought in and planted by them or that anything
valuable was clandestinely taken away. When the key of the Locker is readily made available by
the hirer to the Authorised Officer, the search will be carried out immediately. If, however, the key
is not forthcoming, the Authorised Officer has power to break open the Locker and search it.
Nevertheless, he will ordinarily give reasonable opportunity to the hirer to produce the key. When
the Authorised Officer decides to postpone the opening of the locker, he will proceed to seal it and
serve a prohibitory order on the Bank Official under Sec. 132(3) of the Income Tax Act directing
that the Locker should not be opened or allowed to be opened without the knowledge and written
permission of the Authorised Officer and on such conditions as he may prescribe. This is done to
enable the Bank Official to refuse the hirer access to the Locker if he insists on opening it by
exercising his rights under the hire contract subsisting between him and the bank. If, even after
giving a reasonable time to the hirer to produce key, it is not made available, the Authorised
Officer will proceed to break open the Locker. The opening of the Locker will be done in the
79
presence of at least two witnesses. The search that will be done after opening will also be
witnessed by the same persons. The hirer of the Locker will be invited to witness the search but his
presence is not essential. It should be noted here that if a person is called upon by Authorised
Officer to witness a search, that person is legally bound to do so. Therefore, if required by the
Authorised Officer, the Bank Official should unhesitatingly permit his employee as witness for the
search. 18.7 After the search, the Authorised Officer will prepare a .Panchanama. setting out
briefly all that has been done including where necessary, the circumstances under which it became
necessary to break open the locker. This will be duly signed by the Authorised Officer and the
witness. If any items are seized an inventory of such items will also be prepared and signed by
Authorised Officer and the witnesses. The Bank Official is entitled to a copy of the .Panchanama.
and inventory of documents and valuables seized. He would obtain these and hold them as part of
the records of the bank.
18.8 When a Locker is broken open, it may sometimes becomes necessary for the Authorised
Officer to hire from the bank another locker to keep the contents in safe custody on behalf of the
Department. In such an event, the Bank Official should provide the Authorised Officer necessary
facilities on priority basis

21.NEGOTIABLE INSTRUMENTS ACT

Negotiable Instruments have occupied a prominent place not only in trade and commerce but
also in public life. With the spread of banking services to remote rural areas, the negotiable
instruments have replaced the actual passing of cash in mutual dealings thereby eliminating the
risk involved in handling of cash. The Negotiable Instruments Act 1881 came into force w.e.f
1.3.1882.
It has 147 sections. Sec 138 to 142 added w.e.f.1.4.1989 and Sec 143 to 147 were added in
December 2002. This Act is applicable to whole of India.
Negotiable Instruments – Definition.
What is “Negotiable Instrument” is not defined under the act. As per Sec.13 of Negotiable
Instruments (NI) Act a “Negotiable Instrument” means a promissory note, bill of exchange or
cheque payable either to order or to bearer. Thus Negotiable Instruments include:
Promissory Note;
Bill of Exchange; and Cheque.
To become a negotiable instrument, the instrument must possess the following two
characteristics:
Transfer of the instrument without restriction; and
A person (transferee) taking the instrument for value (known as a holder in due course) and in
good faith, gets absolute title to the instrument notwithstanding any defect in the title of the
transferor or any prior party. This is called negotiability and is the basic test of negotiable
instrument.
Because of the above two characteristics, the following are treated as :
→NEGOTIABILE INSTRUMENTS →NOT-NEGOTIABLE INSTRUMENTS
1 Bank Draft 1 Fixed Deposit Receipt
2 Govt. Promissory Note 2 Share Certificate
3 Bill of lading 3 Withdrawal Slip from SB Account.
4 Share warrants & Dividend warrants 4 LIC Policy
5 Treasury Bills 5 Airway Bill

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6 Hundi 6 Document of Title to immovable property
7 Certificate of Deposit & Commercial 7 Currency Note . This itself is money
Paper (Sec 21 of Indian Currency Act)
As per Section 31 of Reserve Bank of India Act, 1934, no person other than Reserve Bank or
Central Government can draw, accept, make or issue any bill of exchange or promissory note
payable to bearer on demand.

Presumptions as to Negotiable Instruments (Sec.118):

1 Consideration : It is drawn/accepted, endorsed or negotiated for consideration
2 Date It is drawn/made on the date mentioned
3 Acceptance Bill of exchange was accepted within a reasonable time after
its date and before its maturity
4 Transfer : Every transfer of negotiable instrument was made before its
maturity
5 Endorsement Endorsements appearing upon a negotiable instrument were
made in the order in which they appear thereon.
6 Stamps A lost instrument was duly stamped
7 Status of Holder Holder was a holder in due course
The onus of proving that the instrument is contrary to these presumption(s) lies with the person
who challenges the same.

Competent party to a Negotiable Instrument:

As per Sec.11 of Indian Contract Act,1872 a minor, a person of unsound mind (lunatic) and an
undischarged insolvent are not eligible for making a valid contract. However, u/s 26 of NI Act “ a
minor may draw, endorse and negotiate a negotiable instrument so as to bind all parties except
himself.”

I. Promissory Note : Sec.4 of NI Act: It is an instrument in writing, signed by the maker,

containing an unconditional undertaking to pay, a certain sum of money only, to or to the order
of a certain person or to the bearer of the instrument.

II. Bill of Exchange :

Sec.5 of NI Act: “A Bill of Exchange is an instrument in writing containing an unconditional order
signed by the maker , directing a certain person to pay a certain sum of money only to or to the
order of a certain person or to the bearer of the instrument.”
A Bill of Exchange is an ORDER to pay money while a Promissory Note is an UNDERTAKING to pay
money.

1. Parties to a Bill of Exchange :

Drawer : A person who order to pay money. He is the creditor.
Drawee: Who is directed to pay money. He is the debtor.
Payee : Who is authorized to obtain the payment.
Acceptor: Who accepts the bill. Generally the drawee.
Drawee in case of Need : He is a person who should be approached in case the drawee fails to
accept or pay the bill. The name of the drawee in case of need is to be mentioned in the bill either
by the Drawer or by any endorser. The bill is not treated as dis-honoured unless and until it is dis-
honoured by drawee-in-case- of need.

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Acceptor for Honour: When a Bill of Exchange is Noted or Protested for non-acceptance, any
person who accepts is for the honour of drawer or any of the endorsers, is called the Acceptor for
Honour. His name is not mentioned in the bill.

III. CHEQUES :
A Cheque has been defined under Sec 6 of NI Act,1881 as follows:
“A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand and it includes the electronic image of a truncated cheque and a
cheque in the electronic form”.

ELECTRONIC CHEQUES : A cheque which contains the exact mirror image of a paper cheque, and is
generated, written and signed in a secure system ensuring the minimum safety standards with the
use of digital signature (with or without biometrics signature) and asymmetric crypto system.

TRUNCATED CHEQUE : A cheque which is truncated during the course of clearing cycle, either by
the clearing house or by the bank whether paying or receiving payment, immediately on
generation of an electronic image for transmission, substituting the further physical movement of
the cheque in writing.
The account holder is the DRAWER of the cheque.
The person in whose favour the cheque is drawn is the PAYEE of the cheque.
The bank, where the account is maintained, is the DRAWEE of the cheque.
Other parties to the cheque include HOLDER, HOLDER IN DUE COURSE, ENDORSERS and
ENDORSEEs.

PAYING BANKER OF CHEQUES

When a banker opens an account of the customer, it is a statutory obligation that the banker will
honour the cheques drawn by the customer against the balance held in the account of the
customer. A banker to whom the order to pay, where the order takes the form of a cheque, is
addressed is known as the paying banker.
The Paying Banker thus undertakes the statutory liability to pay the cheques of its customer and
debit the customers account with the cheque amount.

WHAT IS PAYMENT IN DUE COURSE? Section 10 of NI Act 1881 defines Payment in Due Course
as:-“ Payment in accordance with the apparent tenor of the instrument in good faith and without
negligence to any Person in possession thereof under circumstances which do not afford a
reasonable ground for believing that he is not entitled to receive payment of the amount
mentioned therein. “
Thus we are clear, while analyzing the above definition of Payment in Due Course,
that the paying bank has to pay the cheques in due course in order to debit the Customer’s
account. In case of any wrong payment it has to make good the drawer. In order to make the
PAYMENT IN DUE COURSE it has to ensure that the payment has been made in due course.
THE FOLLOWING ASPECTS ARE TO BE TAKEN INTO ACCOUNT IN CASE OF PAYMENT IN DUE
COURSE OF A CHEQUE.

DATE OF THE CHEQUE:

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[A] Payment of a cheque bearing a future date [ A Post dated Cheque ]is not a payment in due
course . A cheque dated 15 th August 2002[ which is a public holiday] can be paid on or after 16 th
August 2002.
[B] Payment of a Stale Cheque is not a “ Payment in Due Course “. A Stale cheque is a cheque
which is out of its validity period .A cheque normally remains valid for SIX months as per
established customs but not as per the Provisions of any Law. The validity period of the cheque
may be more or less than six months but the same must be clearly expressed on the cheque itself.
A Stale cheque after revalidation only by the drawer or his Authorised Agent can be paid.
[C] An undated cheque should not be paid.
[D] A Cheque bearing an impossible date, say 31st April 2002 can earliest be paid on or after
30.4.2002.

PAYEE OF THE CHEQUE;

The amount of cheque to whom the payment is to be made is known as the payee. A payee may
be of the following type.
[a] MINOR; As per Sec 26 of NI Act “ A minor may draw, endorse, deliver and
negotiate a negotiable instrument “ so as to bind all parties except himself. So a cheque made
payable to a minor can be paid if otherwise in order.
[b] An insolvent is one who is incapable of meeting his liabilities. After a man is adjudged an
insolvent, the true owner of a cheque payable to the insolvent is the Official Receiver/Assignee.
Hence a cheque made payable to an insolvent should not be paid, However, if the bank is unaware
of the insolvency proceeding, the payment of a cheque if made in due course, the paying bank
cannot be held accountable.

[C] A COMPANY/CORPORATION/GOVT. DEPT.

A cheque made payable to any of the above payee should not be paid in Cash.
A cheque made payable to any of the above payee should not be collected in third party account.
A cheque payable to a company should not be got credited to the personal account of any
Employee/Director, etc.

[D] Drawer arrested/Imprisoned : In case of criminal liability or Civil liability, the contractual
power is not extinguished. Hence cheque drawn by the drawer under such circumstances can be
paid. But if the drawer become insolvent and imprisoned, the cheques drawn by the Drawer
should not be paid.

[E] Alternate Payee : A cheque made payable to alternate payees, e.g. pay to A or B or C or order,
the paying bank may pay the cheque to any one or order.

[F] Impersonal Payee: Sometimes cheques are drawn made payable as “ Cash or Order”, “ Lord
Krishna or Order “. Paying banks in such circumstances, in practice, pay such cheques to the
Drawer only.

[G] ILLITERATE PERSONS: Cheques can be [paid to such person against witness of a person
known to him, in the presence of the bank. Address of the witness should be noted. As far as
possible, this witness should be some one not in the employment of the bank.

AMOUNT OF THE CHEQUE;

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Section 18 of NI Act “ If the amount undertaken or ordered to be paid is stated differently in
figures and in words, the amount stated in words shall be the amount undertaken or ordered to
be paid” .

DRAWER’S SIGNATURE:
No Signature, No payment.
Forged signature of the Drawer, no payment.
No protection is available to a paying banker where the signature of the drawer is forged . The
bank cannot debit the Customer’s account because there has been no mandate at all by the
drawer to the drawee bank to make payment of the cheque.
PAYMENT IS TO BE MADE IN GOOD FAITH AND WITHOUT NEGLIGENCE.
The terms “ Good Faith “ and “ Negligence “ have been a subject matter of discussion over a
period of time. The term ‘good faith’ generally means ‘acting honestly ‘where as it is difficult to
define the term negligence. We can generally accept the term “Negligence” as doing a thing, which
a man of ordinary prudence should not do or not doing a thing which a man of ordinary prudent
would do. This means that while making payment, a banker has to exercise care, which should
be reasonable and as can be expected from a man of ordinary prudence.

SOME ILLUSTRATED CASES OF NEGLIGENCE IN PAYMENT OF THE CHEQUE.

[A] Payment of a stale/post dated cheque.
[B] Payment of a crossed cheque in cash.
[C] The amount of cheque is Rs 1,000/- and paid amount is Rs.10,000/-
[D] Payment of a cheque made payable to a company to the employee’s personal account.
[E] Payment of a countermanded cheque.
[F] Payment after Banking hours.

PROTECTION TO THE PAYING BANKER (For Open or Un-crossed Cheques)

The Negotiable Instrument Act, 1881 deals with payment of cheques and protection to the
paying Banker under various Sections which includes Section 10, 31,85,85A, 89 and 126 to 130.
We have already dealt above with Section 10 and 31.
Section 85: Cheque Payable to Order.
Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the
drawee is discharged by payment in due course.
Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by
payment in due course to the bearer thereof, notwithstanding any endorsement whether in full
or in blank appearing thereon, and notwithstanding that any such endorsement purports to
restrict or exclude further negotiation.
Section 85 A . Payment of drafts.
Where any Draft payable to order on demand purports to be endorsed by or on behalf of the
payee, the bank is discharged by payment in due course.

MATERIAL ALTERATION AND PAYING BANKER: (Sec 89)

Any alteration in the cheque which makes a significant change in the mandate given by the drawer
is called a material alteration.
Instances of material alteration are alteration of the [1] date of the cheque [2] name of the payee
[3] order to bearer [4] amount of cheque etc.

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Material alteration, to make it valid, must be authenticated by the drawer or his duly authorized
agent.
The payment of a materially altered cheque without authentication by the drawer or his duly
authorized agent is not a payment in due course.
As per section 89 of NI Act, a paying banker is protected for payment of a materially altered
cheque if:
[1]The alteration cannot be detected with reasonable care and diligence; and
[2] The paying banker pays the cheque in due course. [Sec,10 ]

PROTECTION TO A BANKER OF CROSSED CHEQUES:

Sec 128 gives protection to a Bank paying a Crossed Cheque in case of wrongful payment.
As per this section a banker who has paid the crossed cheque in due course, is not liable for any
wrongful payment.
Section 85 and 85 [A] of NI Act give protection to a paying banker in respect of payment of
cheques and drafts. However, the following two conditions must be fulfilled.
[a] The endorsements are regular; and (A list of regular form of endorsements is
mentioned in “Collecting Banker” herein below.)
[b] The payment made is a “Payment in Due Course “.
The following points are to be taken into consideration while making “Payment in Due Course” of
a cheque.

MUTILATION
When a cheque is torn into two or more pieces, it is called a mutilated cheque. If a banker
honours a cheque which is torn by the customer, in such a way that it gives
sufficient evidence of his intention to cancel it, the former cannot debit the latter’s account with
the amount of the cheque. In case, however, a cheque is torn accidentally, the drawer must
confirm it by writing the words “mutilation confirmed “ and affixing his signature thereto.
INCHOATE INSTRUMENT; Inchoate means incomplete. An inchoate instrument should not be paid
by the paying banker.

MARKING OF CHEQUES:
By marking of a cheque good for payment, the bank undertakes to honour the Cheque when
presented for payment, if otherwise in order. Marking of cheques is not recognized by the NI Act.
It has developed by usage.
Except in exceptional cases and to most valued customers, a banker should avoid marking of
cheques as good for payment.

STOP PAYMENT OF CHEQUES:

Sometimes the drawee bank receives order to stop payment of a cheque. The drawee bank has to
note the following particulars for recording the stop payment of a Cheque.
Date of the cheque; 2. Printed number of the cheque; 3. Drawee bank name ;
Amount of the cheque; 5. Payee of the cheque; 6.Account Number.

WHO CAN GIVE STOP PAYMENT INSTRUCTION TO THE BANK?

The drawer of the cheque.
Payee/holder of the cheque [In this case confirmation of the drawer is required.]
Joint account holder.

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STOP PAYMENT ORDER RECEIVED BY TELEGRAM/ORAL/TELEPHONE.
Sometimes the “Stop payment Order“ is received by the drawee bank by
telegram/orally/telephonically. In that case a written confirmation to be got immediately.
In the meanwhile if the cheque is received for payment either directly or through clearing the
same cheque may be returned with the reason “Payment countermanded by
telegram/oral/telephone. Payment postponed pending confirmation. “

SUITABLE REPLIES TO DISHONOURED CHEQUES;

When a cheque is returned, the paying bank returns the cheque alongwith a memo which is
known as “ Return Memo “ which points out the reason of dishonour. Some
Of the reasons are described below.
1] Refer to Drawer: When the fund in the account of the drawer is insufficient to honour the
cheque. When attachment/Garnishee order is received, this reason may be given.
2] Not arranged for: This phrase is used when passing of the cheque will result in either
overdraft in the account or exceed the limit of overdraft which is not arranged for.
3] Effects not cleared, please present again. : When cheques are received for collection and
proceeds are not still received.
4] Exceeds arrangement: When the amount of overdraft would exceed the approved limit
as a result of payment of cheque, this phrase is used.
5] Insufficient funds: branch should mention reason that opening a/c balance insufficient
where cheque is being returned for insufficient balance in the a/c

COLLECTING BANKER
Collection of cheques has now become an important function of a banker with the growth of
banking habit and with the wider use of crossed cheques. It casts a heavy responsibility on the
collecting banker to collect a cheque to the true owner failing which it is liable for compensation.
While collecting a cheque a banker may act either as :
Holder for value; or An agent of the customer.

HOLDER FOR VALUE:

When the collecting banker gives credit to the customer the amount of the cheque before the
amount of the cheque is actually realised from the drawee banker, the collecting banker is
deemed to be its ‘Holder for value.” The bank takes an undertaking from the customer to the
effect that the latter will reimburse the former in case of dishonour of cheque.

AGENT OF THE CUSTOMER:

A Collecting banker acts an agent of the customer when it gives credit of the instrument after its
realization.

STATUTORY PROTECTION AVAILABLE TO A COLLECTING BANKER FOR COLLECTION OF CHEQUES:

As per Section 131 of NI Act, 1881, “ A banker who has in good faith and without negligence
received payment for a customer of a cheque crossed generally or specially to himself shall not, in
case the title to the cheque proves defective incur any liability to the true owner of the cheque by
reason only of having received such payment”.
The points emerging from the above section:
The cheque must be a crossed one.

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The payment must be received for a customer. It must be collecting the cheque
as an agent of the customer and not as a holder for value.
Payment must be received in good faith and without negligence.
Collecting banker – Negligence in Opening the account :-
For claiming statutory protection under Section 131 of the Negotiable Instruments Act, it is
necessary that the collecting banker should have acted without negligence. Absence of negligence
on the part of the banker is not limited to the actual process of collection of cheque only but it also
relates back to the opening of the account.
General Crossing: (Section 123)
Drawing of two transverse parallel lines across the face of the cheque either with or without the
word “ Not Negotiable” & “& Co” is called a general crossing. By above section we mean General
Crossing is a direction to the Paying Bank not to pay the cheque across the counter but to pay it
through a bank.
SPECIAL CROSSING; [SEC 124] WHERE a cheque bears across its face an addition of the name of a
banker, that addition constitutes a crossing and the cheque is said to be crossed specially. Drawing
of two parallel lines is not essential for special crossing.

WHO CAN CROSS A CHEQUE: [SEC 125]

[1] The holder of a cheque may cross it generally or specially.
[2] The banker to whom the cheque is crossed specially may again cross it specially to another
banker as his agent for collection.

LIABILITY OF THE PAYING BANKER ON CROSSED CHEQUES;

Section 126 lays down that “ where a cheque is crossed generally, the banker on whom it is drawn
shall not pay it otherwise than to a banker and where a cheque is crossed specially, the banker on
whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent
for collection.
Section 128 of NI Act gives statutory protection to the paying banker if the payment of crossed
cheques has been made in due course and as per the terms of above Section 126.

ACCOUNT PAYEE CROSSING:

NI Act does not define “Account Payee crossing”. It has been developed due to practice
prevalent in the business community. These words constitute a direction to the Collecting Bank to
not pay the proceeds otherwise than to the payee. The paying bank need to confirm from the
collecting banker that the proceeds of the cheque is being received for the benefit of the payee.

NOT NEGOTIABLE CROSSING: [SEC 130]

“ A person taking a cheque crossed generally or specially bearing in either case the words “not
negotiable “ shall not have and shall not be capable of giving a better title to the cheque than
that which the person from whom he took it had.” A cheque marked “Not Negotiable” is
transferable. However, it has the following effects.

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EFFECTS OF NOT NEGOTIABLE CROSSING: -
The transferee of a “Not Negotiable” crossed cheque shall not have a better title than that of the
transferor of the cheque.

DOUBLE CROSSING; - A cheque cannot be crossed to two banks, Thus the paying bank will deny
the payment of a cheque if doubly crossed as given below.
----------------------------------------
ANDHRA BANK

CORPORATION BANK
-----------------------------------------
But in the following double crossing the paying bank may honour the cheque.
------------------------------------------
ANDHRA BANK
TO
CORPORATION BANK
[ as agent for collection ]
-------------------------------------------
OPENING OF CROSSING; _
The crossing in a cheque can be cancelled by the Drawer of the cheque. He has to write the words
“Crossing cancelled, Pay Cash “ and put his signature. Thereafter the cheque can be paid in cash.

BOUNCING OF CHEQUES
Sections 138 to 142 of Negotiable Instruments Act, 1881 came into operation w.e.f.
1.4.1989.In order to make acceptance of the cheque in discharge of liabilities as a medium these
penal provisions have been added.
Section 138 states ‘ where any cheque drawn by a person on an account maintained by him
with a banker for payment of any amount of money to another person from out of the account for
the discharge, in whole or in part, of any debt or Other liability, is returned by the bank unpaid,
either because of the amount of money standing to the credit of that account is insufficient to
honour the cheque or that it exceeds the amount arranged to be paid from that account by an
agreement made with the bank, such person shall be deemed to have committed an offence and
shall, without prejudice to any other provision to this act, be punished with imprisonment for a
term which may extend to TWO years or with fine which may extend TWICE the amount of the
cheque, or with both :
Provided that nothing contained in this section shall apply unless –
[a] the cheque has been presented to the bank within a period of six months from the date
on which it is drawn or within the period of its validity, whichever is earlier,
[b] the payee or the holder in due course of the cheque, as the case may be, makes a
demand for the payment of the said amount of money by giving a notice, in writing, to the drawer
of the cheque, within 30(thirty) days of the receipt of information by him from the bank regarding
the return of the cheque as unpaid, and
[c] the drawer of such cheque fails to make the payment of the said amount of money to
the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days
of the receipt of the said notice.
Explanation “debt or other liability “means a legally enforceable debt or other liability.

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 Sec. 139. It shall be presumed, unless the contrary is proved, that the holder of a cheque
received the cheque of the nature referred to in section 138 for the discharge, in whole or in part,
of any debt or other liability.
Sec 140 .It shall not be a defence in a prosecution for an offence u/s 138 that the drawer had
no reason to believe when he issued the cheque that the cheque may be dishonoured on
presentment for the reasons stated in that section.
Sec 141. If the person committing an offence under Section 138 is a company, every person
who, at the time the offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against and punished
accordingly.
Sec 142. Notwithstanding anything contained in the Code of Criminal Procedure 1973 –
[a] No Court shall take cognizance of any offence punishable u/s 138 except upon a
complaint, in writing, made by the payee or, as the case may be, the holder in due course of
the cheque.
[b] Such complaint is made within one month of the date on which the cause of action
arises under clause [c] of the provision to section 138 ; and
[c] No Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first
class shall try any offence punishable u/s 138. Criminal complaints u/s 138 of N.I. Act can be
lodged by the Manager of a branch without referring the matter to any Higher authority. If the
cheque is issued by the guarantor and it is bounced due to “insufficient fund” , the guarantor can
also be prosecuted.
Bank’s specimen forms of Power of Attorney specifically authorise the branch Managers to
file a criminal complaints against the defaulting borrowers in addition to filing of civil suit and/or
application for recovery of Bank’s dues. By virtue of the said power granted in favour of the
Managers, they are authorised to institute criminal cases/proceedings against defaulting
borrowers and guarantors in appropriate cases.

Section 139 is regarding Presumption in favour of holder

  It shall be presumed, unless the Contrary is proved, that the holder of a cheque received the
cheque of the nature referred to in section 138 for the discharge, in whole or in part, or any debt
or other liability. Defence which may not be allowed in any prosecution under section 138
 
1
[Defence which may not be allowed in any prosecution under section 138 It shall not be a defence
in a prosecution of an offence under section 138 that the drawer had no reason to believe when
he issued the cheque that the cheque may be dishonoured on presentment for the reasons stated
in that section].

Section 141 does not make all the directors liable for dishonor of cheque
The criminal liability can be fastened only on those who, at the time of the commission of the
offence, were in charge of and were responsible for the conduct of the business of the company;
vicarious liability on the part of a person must be pleaded and proved and not inferred.

Section 142 deals with Cognizance of offences

 Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974).-
 

89
(a) No court shall take cognizance of any offence punishable under section 138 except upon a
complaint, in writing, made by the payee or, as the case may be, the holder in due course of the
cheque; (b) Such complaint is made within one month of the date on which the cause of action
arises under clause (C) of the proviso to section 138:
 
2
["Provided that the cognizance of a complaint may be taken by the Court after the prescribed
period, if the complainant satisfies the Court that he had sufficient cause for not making a
complaint within such period.]
 
(c) No court inferior to that of a Magistrate or a Judicial Magistrate of the first class shall try any
offence punishable under section 138]. 

Section 143 . Power of Court to try cases summarily.

 (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all
offences under this Chapter shall be tried by a Judicial Magistrate of the first class or by a
Metropolitan Magistrate and the provisions of sections 262 to 265 (both inclusive) of the said
Code shall, as far as may be, apply to such trials:
 
Provided that in the case of any conviction in a summary trial under this section, it shall be lawful
for the Magistrate to pass a sentence of imprisonment for a term not exceeding one year and an
amount of fine exceeding five thousand rupees:
 
Provided further that when at the commencement of, or in the course of, a summary trial under
this section, it appears to the Magistrate that the nature of the case is such that a sentence of
imprisonment for a term exceeding one year may have to be passed or that it is, for any other
reason, undesirable to try the case summarily, the Magistrate shall after hearing the parties,
record an order to that effect and thereafter recall any witness who may have been examined
and proceed to hear or rehear the case in the manner provided by the said Code.
 
(2) The trial of a case under this section shall, so far as practicable, consistently with the interests
of justice, be continued from day to day until its conclusion, unless the Court finds the
adjournment of the trial beyond the following day to be necessary for reasons to be recorded in
writing.
 
(3) Every trial under this section shall be conducted as expeditiously as possible and an endeavour
shall be made to conclude the trial within six months from the date of filing of the complaint.]
 
Section 144 Mode of service of summons.
 (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974) and
for the purposes of this Chapter, a Magistrate issuing a summons to an accused or a witness may
direct a copy of summons to be served at the place where such accused or witness ordinarily
resides or carries on business or personally works for gain, by speed post or by such courier
services as are approved by a Court of Session.
 
(2) Where an acknowledgment purporting to be signed by the accused or the witness or an
endorsement purported to be made by any person authorised by the postal department or the
courier services that the accused or the witness refused to take delivery of summons has been
received, the Court issuing the summons may declare that the summons has been duly served.
90
 
Sec 145 Evidence on affidavit.
 (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974.) the
evidence of the complainant may be given by him on affidavit and may, subject to all just
exceptions be read in evidence in any enquiry, trial or other proceeding under the said Code.
 
(2) The Court may, if it thinks fit, and shall, on the application of the prosecution or the accused,
summon and examine any person giving evidence on affidavit as to the facts contained therein.]

Sec. 146. Bank's slip prima facie evidence of certain facts.

 The Court shall, in respect of every proceeding under this Chapter, on production of bank's slip or
memo having thereon the official mark denoting that the cheque has been dishonoured, presume
the fact of dishonour of such cheque, unless and until such fact is disproved.] 

Sec. 147. Offences to be compoundable.

 Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974.) every
offence punishable under this Act shall be compoundable.]
 

22.RESERVE BANK OF INDIA ACT, 1934 AND MAIN FUNCTIONS OF RBI

Reserve Bank of India came into existence on 1 st April 1935 as a private sector bank as per the
provisions of Reserve bank of India Act 1934 on the basis of recommendations of John Hilton
Young Commission in 1926. It was nationalized on 1 st January 1949 with 100% ownership of
Central Government with paid up capital of Rs. 5 Crs.
The RBI Act 1934 confer upon RBI, the Central bank of our Country, the powers to act as the
Note issuing authority
Banker to the Central and State Governments
Bankers’ Bank
RBI also functions as a promoter of Agriculture & Industry to accelerate the pace of Economic
Development with its periodical Monetary and Credit Policy. It collects and furnishes certain credit
information to Banks and Financial Institutions and also supervises and controls them. RBI also
regulates the Foreign Exchange Market. RBI is managed by a Board of Directors consisting of the
Governor, not more than four Deputy Governors and Fifteen other Directors totaling twenty
Directors.

RBI as Note Issuing Authority:

The currency of our Country consists of one Rupee notes and Coins issued by the Govt. of India
and Bank notes of denominations of Rs. 2/- and above issued by the issue department of RBI. The
One rupee notes bear the signature of the Secretary, Ministry of Finance while the Bank notes
bear the signatures of Governor of RBI. As per Sec. 24 of the RBI Act, Bank notes can be issued in
denominations of Rs. 2,5,10,20,50,100,500,1000,5000 and 10000.

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Section 31 of RBI Act provides that no person other than RBI or Central Govt. can issue a
promissory note or Bill of Exchange marked payable to bearer on demand. Apart from its issue
department, the RBI also appoints Public Sector Banks to act as its agent for distribution of
currency through the currency chests maintained by them at their different branches. The
balances in the currency chests are the properties of RBI. The Agent banks are reimbursed the
expenses incurred by them for maintaining the currency chests.

RBI as banker to Government:

As per section 20 of RBI Act, it is obligatory on the part of RBI to transact the banking business and
manage the public debts of the Central Govt. Section 21 requires Central Govt. to entrust all its
money, remittance, exchange and banking transactions in India and deposit, free of interest, all its
cash balances with RBI. In terms of section 21A RBI perform similar functions on behalf of State
Governments.
Public debts means the borrowing of the Gov t. by way of long term bonds or by way of short term
instruments known as Treasury Bills.

RBI as Bankers’ Bank:

Reserve Bank acts as the banker and lender of last resort to all Scheduled Banks. A scheduled bank
is one which is included in the second schedule to the RBI Act. A bank to be included in the second
schedule is to fulfill the conditions mentioned in sec. 42 of RBI Act. Apart from commercial banks,
both Indian and Foreign, Regional Rural banks and State Co-operative banks are also classified as
scheduled banks.
The Reserve Bank provides short term liquidity support through (A) standing facilities and (B)
liquidity Adjustment facility (LAF).
Standing facilities : At present RBI provides two types of standing facilities namely
Export Refinance to the extent of 15% of outstanding export credit eligible for refinance as at the
end of the second preceding fortnight.
Collaterized Lending facility i.e. borrowing from RBI against the pledge of approved securities.
Liquidity Adjustment Facility : under LAF RBI goes for Reverse Repos transactions for absorption of
surplus liquidity and Repo Transaction for injection of liquidity in the system.
Both these transactions are undertaken through the SGL maintained by individual banks at the
Central Office of RBI.

RBI as promoter of Agriculture & Industry & Pace of Economic Growth

RBI through its Monetary and Credit Policy ensures Price stability and availability of adequate
credit to the productive sector of economy. This is achieved by regulating money supply in the
market and General or Quantitative Credit Control through Bank Rate, Reserve Requirement, open
market operations, Interest rate policy and selective credit control.
In addition to that RBI maintains funds called National Industrial Credit (Long Term operations)
Fund and National Housing Credit (L.T. operations) Fund for augmenting growth of Industrial and
Housing Sector.
Similarly RBI contributes every year to National Rural Credit (LT operations) Fund and National
Rural Credit (stabilization) Fund maintained by NABARD for augmenting Agricultural Credit.
Money Supply: RBI measures the Monetary Aggregate and liquidity aggregates in the following
manner on a fortnightly and quarterly basis respectively,
Monetary Aggregate:
Mo (Monetary base) = Currency in circulation + bankers’ deposit with RBI + other deposits with RBI

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M1 (Narrow Money) = Currency with public + demand deposit with Banks + other deposits with
RBI
M2 = M1 + CD issued by banks + TDS (excluding FCNRB) with maturity upto 1 year with banks + SB
deposit with banks.
M3 (Broad money) = M2 + TDS (excluding FCNRB) above one year + call borrowing by the banking
system from non-depository financial corporations.
Liquidity Aggregate:
L1 = M3 + All deposit (excluding NSCs) with post office savings bank.
L2 = L1 + TDs/TBs/CDs issued by TL institutions/refinancing institutions.
L3 = L2 + Public deposits of NBFCs.
RBI regulates the money supply and liquidity position through various tools like Reserve
requirements, liquidity adjustment facility, market stabilization scheme, market sterilization
process.
Bank Rate : Section 49 of RBI Act defines Bank Rate as “the standard rate at which RBI is prepared
to buy or rediscount bills of exchange or other commercial papers eligible for purchase under the
Act”.
Bank rate affect both cost & the availability of credit. However after the deregulation of interest
rate the effectiveness of bank rate as a credit control measure has become very limited.
Reserve Requirement : RBI has powers to change the Cash Reserve Ratio (CRR) and Statutory
Liquidity Ratio (SLR) which in turn affects the lendable resources of the banks.
CRR – As per section 42 of the RBI Act 1934, all scheduled banks are required to maintain cash in
the form of current account balance on an average basis over a period of 14 days subsequent to
the reporting Friday ,upto a specified percentage as determined by RBI, of its Net Demand and
Term Liabilities (NDTL) as on the reporting Friday. However, CRR should not fall below 70% of the
required amount on any particular day.
For non-maintenance of CRR at stipulated level RBI charges hefty penalty.
SLR – As per section 24 of Banking Regulation Act 1949, a Banking Company is required to
maintain at the close of business on any day, a specified percentage as determined by RBI ranging
from minimum 25% to maximum 40% of its net demand and Time liabilities in India as on last
Friday of the second preceding fortnight in the form of Cash, gold and unencumbered approved
securities.
Interest Rate Policy :
Section 21 and 35A of BR Act empowers RBI to stipulate rate of Interest on Deposits and Advances.

Selective Credit Control :

By virtue of section 21 & 35A of BR Act, RBI is empowered to exercise selective credit control i.e.
qualitative control by stipulating (i) minimum margin for lending against selected commodities (ii)
ceiling on the level of credit and (iii) the minimum rate of interest to be charged.

Collection and furnishing of Credit Information:

The Reserve Bank has powers to direct any banking company to submit such statements on such
credit information in such form and within such time as may be specified by it from time to time
(sec. 45C).

As per this section (45C) all banks are required to submit a return as on last Friday of April and
October every year giving information on borrowers enjoying secured credit limits of Rs. 10 lacs
and above and unsecured credit limits of Rs. 5 lacs and above.

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RBI has formed credit information Bureau (India) Ltd. (CIBIL) which collects the details of all
doubtful, loss and suit filed accounts showing aggregate outstanding of Rs. 1 Cr. and above and
circulate these details to all banks to help them to take proper credit decision.
All Banks are required to submit to RBI a return called Basic statistical Return (BSR).
BSR-1, Part-A – Particulars of all borrowal accounts enjoying credit limits above Rs. 2 lacs
Part-B – Aggregate of limits of Rs. 2 lacs and less.
BSR-2 – Information on deposits with break up into current, savings and term deposits.

BANKING REGULATION ACT 1949 AND ITS IMPORTANT PROVISIONS

This act was originally passed as Banking Companies Act 1949 and came into force with effect
from 16th March 1949. Subsequently w.e.f. 1st March 1966 the nomenclature of the Act was
changed to Banking Regulation Act 1949. The Act is applicable to whole of India but is not
applicable to Primary Agricultural Credit Societies, Co-operative Land Mortgage Banks and Non-
Agricultural Primary Credit Societies.
Section 9 – A Bank cannot hold immovable property (except for its own use) for any period
exceeding seven years. However, RBI may in any particular case extend the period further not
exceeding Five years.
Section 10 – The period of office of a Managing Director/whole time Chairman cannot exceed Five
years at a time. This can be renewed/extended for a period not exceeding five years at a time.
Section 19 – No banking company shall hold shares in any company whether as pledger,
mortgager or absolute owner of an amount exceeding thirty percent of the paid up capital of that
company or thirty percent of its own paid up share capital and reserve, whichever is less.
Section 20 – No banking company shall grant any loan or advance on the security of its own
shares.
Section 24 – Statutory Liquidity Ratio (SLR)
Section 26 – Every bank shall within thirty days after the close of each calendar year submit a
return to RBI on all deposit accounts which have not been operated for Ten years and above. In
case of term deposits this ten years’ period starts from the date of maturity.
Section 31 – Every bank has to submit balance sheet and Auditors Report within three months
from the date of Balance Sheet.
Section 35 – RBI is empowered to conduct inspection of any bank.
Section 35(A) – As per section 35(A) RBI can issue directions to banks as it deems fit and all banks
are bound to comply with such directions. Some of the directions issued by RBI are : Rounding off
transactions to nearest rupee. Complying with the provisions of Banking Ombudsman Scheme.
Adhering to Know Your Customer guidelines. Adhering to guidelines issued on Clean Note Policy.
Section 45Z – Customers may get the paid instruments returned at their request. True copies of all
such instrument, mechanically or electronically devised to be kept in bank’s possession. Customers
are required to preserve them for a period as prescribed by Central Govt. (45Y)
Section 45ZA to ZE – Nomination for deposit accounts, safe custody articles and safe deposit
lockers

सेवा शर्ते –अधिकारी

94
 SERVICE CONDITIONS
UCO BANK (OFFICERS') SERVICE REGULATIONS,1979 CONTAIN 54 REGULATIONS GOVERNING
THE SERVICE CONDITIONS OF THE OFFICERS.

Some important Regulations are given hereunder:

1. SCALES OF PAY
Scale Basic Pay
Scale I 14500 600/7 18700 700/2 20100 800/7 25700
Scale II 19400 700/1 20100 800/10 28100
Scale III 25700 800/5 29700 900/2 31500
Scale IV 30600 900/4 34200 1000/2 36200
Scale V 36200 1000/2 38200 1100/2 40400
Scale VI 42000 1200/4 46800
Scale VII 46800 1300/4 52000

2. Fitment:
Fitment shall be stage-to-stage i.e. on corresponding stages from 1 st stage onwards and the
increments shall fall on the anniversary date as usual

3. Increments:
Increments in the Scales of Pay will be sanctioned by Competent Authority on an annual basis

Officers in Scale I and Scale II, one year after reaching maximum in their respective scales shall be
granted further increments in the next higher scale subject to their crossing the EB.

Grant of such increments in the next higher scale shall not amount to promotion. Officers even
after receipt of such increments shall continue to get privileges, perquisites, duties, responsibilities
or posts of their substantive Scale I or Scale II as the case may be.

4. Stagnation Increment:
Scale When Payable Stagnation Increment
I II III IV
JMGS I After having moved to scale of pay for Rs.800/ Rs.800/- Rs.900/ Rs.900/
MMGS II (in terms of Regulation 5(b) and -
on completion of every three years after
reaching maximum of the higher scale
MMGS II After having moved to scale of pay for Rs.900/- Rs.900/- Rs900/- No
MMGS III (in terms of Regulation 5(b) and
on completion of every three years after
reaching maximum of the higher scale
MMGS On completion of every three years after Rs.900/- Rs.900/- Rs.900/ Rs.900/
III reaching maximum in the scale - -

5. Dearness Allowance:

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D.A. payable for every rise or fall of four points over/from 2836 points in the quarterly average of
the All India Average Working Class Consumer Prince Index
(General) Base 1960=100 @ 0.15% of pay.

6.House Rent Allowance:

Centre/Area HRA Payable
Major “A” Class Cities and Project Area Centres in Group A 8.50% of PAY
Other Places in Area I and Project Area Centres in Group B 7.50 %of PAY
Other Places 6.50 % of PAY
If an officer produces a rent receipt, the HRA payable to him/her shall be the actual rent paid by
him/her for the residential accommodation in excess over 1.2% of Pay in which he/she is placed
with a maximum of 150% of the HRA payable as per aforesaid rates
The claims of officer employees for House Rent Allowance linked to capital cost shall be restricted
to 150% of HRA

7.City Compensatory Allowance

Area Rate Maximum Amount
i) Places in Area 1 and in the State of Goa 4% of Basic Pay Rs.540/- p.m.
ii) Places with population of five lakhs and over 3% of Basic Pay Rs.375/- p.m.
and State Capitals and Chandigarh,
Puducherry and Port Blair

8. Medical aid (w.e.f.1-11-2007)

a) Officers in JMG and MMG scales Rs.5100/- p.a.
b) Officers in SMG and TEG scales Rs.6320/- p.a

9. Hospitalisation Expenses (w.e.f.1-5-2010)

Regulation 24(1) (b)(i) of Officers Service Regulations:
100% in the case of Officer employees and 75% in the case of his family members. The monthly
income of the dependant should not exceed Rs.3500/-

Scale of Officer Limits

a) Junior Management Grade Scale I i) Bed Charges
Middle Management Grade Scale II Self : Rs.700/- per day
and III Family : Rs.525/- per day
ii) Other Charges
At the scale of 125% of the limits laid down under the
Hospitalisation Scheme applicable to workmen
employees as given in
Annexure I
b) Senior Management Grade Scale IV i) Bed Charges
and V and Top Executive Grade Scales Self : Rs.900/- per day
VI and VII Family : Rs.675/- per day
ii) Other Charges
At the scale of 150% of the limits laid down under the
Hospitalisation Scheme applicable to workmen
96
 employees as given in Annexure I

Package Charges: For specialized treatment for diseases pertaining to Heart, Kidney, Coronory etc.
Treatment for Eligibility for Scale I to III Eligibility for Scale IV and above
Coronory Bypass Surgery Rs. 2,00,000/- Rs.2,40,000/-
Coronory Angiography Rs. 20,625/- Rs. 24,750/-
Angioplasty/Stentoplasty Rs.1,00,000/- Rs.1,20,000/-
Kidney Transplant Rs. 2.25,000/- Rs.2,70,000/-
Liver Transplant Rs. 2,75,000/- Rs.3,30,000/-

Note: Liver transplant charges are not reimbursable in cases where damage to the liver has been
caused by alcoholism
Sanction of advance and demand loan against hospitalization expenses to members of staff:
1. Advance : Rs.1,0,000/-
2. Demand Loan : Rs. 25,000/- (with commercial rate of interest)

Domicilliary Treatment:
Medical Expenses incurred in respect of the following diseases which need domiciliary treatment
as may be certified by the recognized hospital authorities and bank’s medical officer shall be
deemed as hospitalization expenses and reimbursed to the extent of 100% in case of officer
employees and 75% in the case of his family

Cancer, Leukaemia, Thalassemia, Tuberculosis, Paralysis, Cardia Ailment, Pleuresy, Leprosy, Kidney
ailment, Epilepsy, Parkinson”s Disease, Psychiatric disorder, Diabetes, Hepatitis-B, Hepatitis-C,
Haemophilia, Myasteniagravis, Wilson’s disease, Ulcerative Colities, Epidermolysis bullosa, Venous
Thrombosis(not caused by smoking), Aplastic Anaemia, Psoriasis, Third Degree Burns, Rheumatoid
arthritis, Hypothyroidism and Hyperthyroidism.

Note: The cost of medicines etc. in respect of domiciliary treatment shall be reimbursed for the
period stated in the Specialist’s prescription. If no period is stated, the prescription for the
purpose of reimbursement shall be valid for a period not exceeding 90 days

10. Recovery of House/Furniture Rent

i) House Rent recovery shall be @1.20% of the first stage of the scale of pay in which the officer
is placed or the standard rent for the accommodation, whichever is less
ii) Furniture rent recovery shall be @0.25% of the first stage of the scale of pay in which the
officer is placed

11.Fixed Personal Pay (w.e.f.1.11.2007)

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Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall
remain frozen for the entire period of service.
Increment Component DA as on 01.11.2007 Total F.P.P. payable where bank’s
(Rs.) (Rs.) accommodation is provided (Rs.)
(A) (B) (C)
800 58 858
900 65 965
1000 72 1072
1100 79 1179
1200 86 1286
1300 94 1394

Note:
(i) F.P.P. as indicated in “C” above shall be payable to those officer employees who are
provided with bank’s accommodation.
(ii) F.P.P. for officers eligible for House Rent Allowance shall be “A” + “B” plus House Rent
Allowance payable on the last increment of the relevant scale of pay.
(iii) The increment component of F.P.P. shall rank for superannuation benefits.

12. Professional Qualification Pay (PQP) (w.e.f. 1.11.2007)

(A) Officers shall be eligible for professional qualification pay as under :
(i) Those who have passed only CAIIB – Part I / JAIIB
Rs.410/- p.m. one year after reaching top of the scale.
(ii) Those who have passed both parts of CAIIB –
a. Rs.410/- p.m. one year after reaching top of the scale.
b. Rs.1030/- p.m. two years after reaching top of the scale.

(B) An Officer employee acquiring JAIIB/CAIIB (either or both parts) qualifications after reaching
the maximum of the scale of pay, shall be granted from the date of acquiring such
qualification the first installment of PQP and the release of subsequent installments
of PQP shall be with reference to the date of release of first installment of PQP.
13. Other Allowances
(i) Deputation Allowance (w.e.f. 01-05-2010)
a) An officer deputed to serve outside the bank – 7.75% of Pay with a maximum of
Rs.2,300/- p.m.

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 b) An officer deputed to an organization at the same place or to the training establishment
of the bank – 4% of Pay with a maximum of Rs.1200/- p.m.
(ii) Hill and Fuel Allowance (w.e.f. 1.11.2007)
Place Rate
a) Places with an altitude of 1000 metres and above 2% of Pay subject to a
but less than 1500 metres and Mercara Town maximum of Rs.550/-p.m.
b) Places with an altitude of 1500 metres and above 2.5% of Pay subject to a
but less than 3000 metres. maximum of Rs.680 p.m.
c) Places with an altitude of 3000 metres and above. 5% of Pay subject to a
maximum of Rs.1570/- p.m.

(iii) Halting Allowance (w.e.f. 1.5.2010)

Metros
Major ‘A’ Class
Delhi, Mumbai Area I Other Places
Grade / Scales of Officers Cities
Kolkata (Rs.) (Rs.)
(Rs.)
Chennai
Officers in Scale IV & above 1200/- 1000/- 800/- 700/-
Officers in Scale I/II/III 1000/- 800/- 700/- 600/-

Reimbursement of hotel expenses (w.e.f. 29.04.2011)

Grade/Scales of Maximum Room Tariff Proposed (exclusive of admissible taxes)
Major ‘A’ Class Cities Area I Other Places
Officers/ Executives
(Rs.) (Rs.) (Rs.)
TEGS- VI & VII 6800 # 3400 3000
SMGS- IV & V 4000 # 2400 2000
MMGS- II & II 2400 1600 1200
JMGS-I 1600 1200 800
# Reimbursement at Mumbai, New Delhi, Kolkata, Chennai, Bangalore, Ahmedabad and Hyderabad may be
up to 125% of the above applicable ceilings of tariff for executives in Scale-IV to VII.

(iv) Special Area Allowance (w.e.f. 1.11.2007)

At places where special area allowance is payable in terms of Regulation 23(ii) of Officers’ Service
Regulations, 1979/1982, the said allowance shall be payable at rates as in Annexure IV.-Joint Note

(v) Mode of Travel and Expenses on Travel (w.e.f. 1.5.2010)

The following provisions shall apply wherever an officer is required to travel on duty :
a) An officer in Junior Management Grade is entitled to travel by 1st Class or AC 2-tier Sleeper
by train. He may, however, travel by air (economy class) if so permitted by the Competent
authority, having regard to the exigencies of business or public interest.
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 b) An officer in Middle Management Grade is entitled to travel by 1 st Class or AC 2-tier Sleeper
by train. He may, however, travel by air (economy class) if the distance to be travelled is
more than 1000 kms. He may, however, travel by air (economy class) even for a shorter
distance if so permitted by the Competent Authority, having regard to the exigencies of
business or public interest.
c) An officer in Senior Management or Top Executive Grade is entitled to travel by AC 1 st Class
by train or by air (economy class).
d) An officer in Senior Management or Top Executive Grade may travel by car between places
not connected by air or rail provided that the distance does not exceed 500 km. However,
when a major part of the distance between the two places can be covered by air or rail
only the rest of the distance should normally be covered by car.
e) Any other officer may be authorised by the Competent Authority, having regard to the
exigencies of business, to travel by his own vehicle or by taxi or by the Bank’s vehicle.
The remaining provisions as in Sub-regulations (2) & (3) of Regulation 41 of Officers’ Service
Regulations shall remain unchanged.

(vi) Leave Travel Concession (w.e.f. 1.5.2010)

1. During each block of 4 years, an officer shall be eligible for leave travel concession for
travel to his place of domicile once in each block of two years. Alternatively, he may travel
in one block of two years to his place of domicile and in another block of two years to any
place in India by the shortest route.
2. Alternatively, an officer, by exercising an option anytime during a 4 year block or two year
block, as the case may be, surrender and encash his LTC (other than travel to place of
domicile) upon which he shall be entitled to receive an amount equivalent to 75% of the
eligible fare for the class of travel by train to which he is entitled upto a distance of 4500
kms. (one way) for officers in JMG Scale I and MMG Scale II & III and 5500 kms (one way)
for officers in SMG Scale IV and above. An officer opting to encash his LTC shall prefer the
claim for himself / herself and his / her family members only once during the block / term
in which such encashment is availed of. The facility of encashment of privilege leave while
availing of Leave Fare Concession is also available while encashing the facility of LTC.

3. The mode and class by which an officer may avail of Leave Travel Concession shall be the
same as the officer is normally entitled to travel on transfer and other terms and conditions
subject to which the Leave Travel Concession may be availed of by an officer, shall be as
decided by the Board from time-to-time. Provided that w.e.f.1 st May 2010 an officer in
Junior Management Grade Scale I while availing LTC will be entitled to travel by air in the
lowest fare economy class in which case the reimbursement will be the actual fare or the
fare applicable to AC 1st Class fare by train for the distance traveled whichever is less. The
same rules shall apply when an officer in Middle Management Grade Scale II and Middle
Management Grade Scale III while availing LTC where the distance is less than 1000 kms.

(vii) Definition of Family:

100
 a) For the purpose of medical facilities and for the purpose of leave fare concession, the
expression ‘family’ of an officer shall mean an officer’s spouse, wholly dependent
unmarried children (including step children and legally adopted children), physically
challenged brother/sister with 40% or more disability, as also parents ordinarily residing
with and wholly dependent on the officer.
b) The term wholly dependent child/parent, wholly dependent physically challenged brother/
sister shall mean such member of the family having a monthly income not exceeding
Rs.3500/- p.m.
If the income of one of the parents exceeds Rs.3,500/- p.m. or the aggregate income of both the
parents exceeds Rs.3,500/- p.m., both the parents shall not be considered as wholly dependent on
the officer.

14. Project Area Allowance (w.e.f 1st November 2007)

Project Areas falling in Group A – Rs.290/- p.m.
Project Areas falling in Group B – Rs.255/- p.m.

15. Mid Academic Year Transfer Allowance (w.e.f. 1st May 2010)
Rs.700/- p.m. subject to other conditions.

16. Split Duty Allowance

On and from 1st November 2007, Split Duty Allowance shall be payable at Rs.165/- p.m.

17. Officiating Allowance

1. In case of mismatch posting, after one year of recategorisation of the branch, officiating
will be permitted only in number one position in terms of UCO Bank(Officers) Service
Regulatins, 1979.
2. Officiating will also be allowed in number one position in the branch in the cases of
sanctioned leave availed in terms of UCO Bank(Officers) Service Regulatins, 1979.
3. No chain officiating will be permitted (CHO/POS/13/2003 dt, 06-10-2003 and
CHO/POS/04/2004 dt. 27-01-2004)
4. If an officer officiates in the higher scale for not less than 7 days in a calendar month,
he/she shall receive an officiating allowance equal to 6% of his/her Basic Pay. Pro rata for
the period for which he/she officiates. Officiating allowanced will rank for PF/Pension. No
maximum limit for officiating allowance
5. (Ref. CHO/POS/04/2004 dt. 27-01-2004)

18. Half Yearly Closing Allowance

An officer employee if posted at a branch where books are closed on 31st March and 30th
September, a closing allowance of Rs.250/- for each of the two closings.

19. Compensation on Transfer (w.e.f. 1.5.2010)

An officer on transfer will be eligible to draw a lumpsum amount as indicated below for
expenses connected with packaging, local transportation, insuring the baggage etc.
Grade/Scale of Officer (Rs.)
Officers in Scale IV and above 12,000/-
Officers in Scale I, II and III 9,000/-

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20. Leave Rules:
Casual Leave
12 days in a year. Maximum period of 4 working days at a time. CL cannot be combined with any
other leave. Unavailed CL can be availed on sick grounds within three years.

Privilege Leave:
PL can be accumulated upto 240 days. PL should not exceed 240 days at any particular point of
time.

Sick Leave:
30 days Half-pay for each year for the first 18 years of service which can be availed on full pay
basis

Additional Sick Leave:

Eligible for 30 days half-pay sick leave for the next 3 years after completing 24 years of service.
i.e. on completing 25th years : 30 days
on completing 26th year : 30 days
on completing 27th year : 30 days
This can be availed on full pay basis after exhausting the regular sick leave.

Maternity Leave (w.e.f. 1.5.2010)

a) Maternity leave, which shall be on substantive pay, shall be granted to a female employee
for a period not exceeding 6 months on any one occasion and 12 months during the entire
period of her service.
b) Within the overall period of 12 months, leave may also be granted in case of
miscarriage/abortion/MTP.
c) Within the overall period of 12 months, leave may also be granted in case of hysterectomy
upto a maximum of 45 days.

Encashment of Privilege Leave:

a) An officer employee resigning from Bank’s service can encash half of Privilege Leave at his
credit subject to a maximum of 120 days
b) Once in every 4 years at the time of availing LTC, maximum of one month PL can be
encashed.
c) Accumulated PL up to a maximum of 240 days may be encashed at the time of retirement.

21. Joining Time

Seven days exclusive of journey time is permissible to officers for joining at the new place of
posting. The joining time can be availed in two stages also with the prior permission of the
appropriate authority. Unless specifically instructed not to avail joining time, the Officer is
supposed to avail joining time at the time of transfer. Joining time cannot be prefixed to any

102
leave. Joining time is to be availed within 6 months or on relief from the branch/office or within 3
months of the end of the academic session of child whichever is later.

22.Halting Allowance on Transfer

An officer on his transfer from one place to another station shall be eligible to claim Halting
Allowance for the period spent on journey and in exceptional circumstances, he/she may be
allowed Halting Allowance subject to maximum period of 15 days for stay at the new station. Such
HA shall be paid from the date and time the officer arrives at the new place of posting but not
during leave or joining time availed during this period. The officer shall not be entitled to payment
of HRA during the period for which he is being paid Halting Allowance

23.Conveyance Reimbursement Scheme

Scheme A (for Officers not owning vehicles)

Category of Officers Revised Monthly Ceiling of Lumpsum
Reimbursement under Scheme ‘A’
(w.e.f.01.02.2012)
1. All Officers in Scale-IV and above Rs.1000/-
2. All Officers in Scale-III Rs.800/-
3. All Officers in Scale-II Rs.500/-
4. Officers in Scale-I Rs.400/-

Monthly monetary ceiling for reimbursement of conveyance expenses to officers who own
vehicle and use the same for greater mobility in the exigencies of the Bank’s work under Scheme
‘B” (on declaration basis)
(with effect from 1st February 2012)
Category of Officers Area of Operation Four Wheeler Two Wheeler Mopeds
All Officers in Scale- Metropolitan Rs.1,330/- Rs.1,000/- Rs.470/-
III and above Area-I Rs.1,060/- Rs.930/- Rs.420/-
Area-II Rs.1,000/- Rs.730/- Rs.370/-
Area-III Rs.800/- Rs.730/- Rs.370/-
All Officers in Scale-II Metropolitan Rs.1,000/- Rs.800/- Rs.440/-
and Area-I Rs.700/- Rs.500/- Rs.260/-
Scale-I Area-II Rs.600/- Rs.400/- Rs.250/-
Area-III Rs.550/- Rs.400/- Rs.250/-
Scheme B ( For officers owning vehicles)
Monthly ceiling of petrol reimbursement to the eligible officers under Bank’s Conveyance
Reimbursement Scheme (Scheme ‘B’)
With effect from 1st February 2012

A . For Use of Cars :

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 Metropolitan Cities Area – I Area – II Area – III

i) Officers in Scale III 63 litres 58 litres 52 litres 40 litres

and Above
ii) Officers in Scale 46 litres 40 liters 35 litres 35 litres
I/II who are eligible
under the Scheme
.
B . For use of Two Wheelers :
For all above categories of officers Metropolitan Area – I Area – II Area – III
who use Cities
i)Two Wheelers other than moped 29 litres 23 litres 17 litres 17 litres
ii) Mopeds 17 litres 14 litres 12 litres 12 litres

1. The unavailed balance of the limit in a calendar month shall not be carried over and hence
lapsed.
2. Promotee officers and direct recruit officers will not be eligible for such facility till they are
confirmed in the officers’ scale and Bank’s service, respectively.
3. The stipulated monthly limit will be reduced on pro-rata basis when the officers is away
from his headquarters on Bank’s work or on leave for a period of seven days or more.

1. An officer owning vehicle and given option for availing the facility of reimbursement of fuel
units (under Scheme ‘B’) must have submitted to the Bank the following documents for
verification :
i. Driving License in his name (if self driven)
ii. Blue Book – Ownership Registration Book
iii. Insurance Paper of the vehicle
iv. Road Tax Token
The concerned officer shall also submit the above documents to the Bank once in every six months
(i.e. 1st week of January and 1st week of July every year) for verification and confirmation.

Conveyance allowance to Blind and Orthopaedically handicapped employees

5% of Basic Pay subject to a maximum of Rs. 400/-

24.Residential Telephone Facility for Officers/Telephone Bill Reimbursement:

Category of Officers Amount
Branch Heads in Scale-III Rs.438/- p.m. on fixed line or Mobile inclusive of STD/Roaming Facility
Other Scale III Officers Rs.375/- p.m. on fixed line or Mobile inclusive of STD/Roaming Facility
Branch Heads in Scale II Rs.313/- p.m. on fixed line or Mobile inclusive of STD/Roaming Facility
Branch Heads in Scale I Rs.313/- p.m. on fixed line or Mobile inclusive of STD/Roaming Facility
LDMs LDMs will be considered at par with Branch Heads in the respective
scale

25.Provision of Newspaper to Officer employees:

104
Category of Officers Eligible reimbursement

All branch heads in JMGS-I, MMGS-II Cost of two newspapers and one business magazine
and all officers in MMGS-III subject to maximum of Rs.180/-
All others officers in JMGS-1 and MMGS Cost of one newspaper and one business magazine
-II subject to maximum of Rs.130/-

26.Health Check-up Scheme:

Employees in the age group of 40 years and above are reimbursed upto a maximum of Rs.2,500/-
(for spouse it is Rs.1500/-) in every year against production of bills for health check up.
(CHO/PMG/29/2012-13 dated 20.11.2012)

27.Funeral Expenses:
Rs.20,000/- to be paid to the family of the deceased member of staff to meet funeral expenses .
(CHO/PMG/15/2008-09 dated 10-09-2008)

28.Festival Advance
One month’s emoluments i.e. Basic Pay + Spl. Pay + D.A. etc. but excluding HRA and CCA subject to
a maximum of Rs.25,000/-

29.Entertainment Expenses Per Annum:

Sl. No. Scale of Officer Annual Monthly Monthly Limit
ceiling Limit for the from the month
( per annum) month of of February to
January (in ) December( in)
1 Scale-VII 24000.00 2000.00 2000.00
2(a) Scale-VI- as Branch Head(BH)/ 20000.00 1740.00 1660.00
Zonal Head(ZH)
2(b) Scale-VI- other than BH/ZH 12000.00 1000.00 1000.00
3(a) Scale-V- as Branch Head(BH)/ 12000.00 1000.00 1000.00
Zonal Head(ZH)
3(b) Scale-V-other than BH/ZH 7500.00 625.00 625.00
4(a) Scale-IV- as Branch Head 12000.00 1000.00 1000.00
4(b) Scale-IV-other than BH/ZH 6000.00 500.00 500.00
5(a) Scale-III- as Branch Head 8000.00 740.00 660.00
5(b) Scale-III-other than BH/ZH 4000.00 370.00 330.00
6(a) Scale-II- as Branch Head 6000.00 500.00 500.00
6(b) Scale-II-other than BH/ZH 3000.00 250.00 250.00
7(a) Scale-I- as Branch Head 5000.00 435.00 415.00
7(b) Scale-I-other than BH/ZH 2500.00 245.00 205.00

105
 30.Various Loan Schemes:

Conveyance Loan: (Two Wheeler)

Eligibilty All confirmed Officers
Quanturm 90% of cost of vehicle subject to a maximum of Rs.60000/-
Rate of Interest Upto Rs.15000/- = 7.5% simple Beyond Rs.15000/- = 12.00% simple
Repayment 84 months(70+14)

Conveyance Loan (Motor Car)

Eligibilty All confirmed officers
Quanturm 80% of the cost of vehicle subject to maximum of Rs.3.50 lakhs
Rate of Interest Upto Rs.80000/- 8.5 % simple Beyond Rs.80000/- 12.00 simple
Repayment 200 months (120 + 80)

Second Car Loan facility available

Loan for repairs to Motor Car
Maximum Rs.10,000/- once in every two years for the purpose of carrying out the repairs to the
vehicle owned by the Officer

Consumer Loan
Old Scheme New Scheme
Eligibilty 2 Years of confirmed service 3 years of service
Quanturm 90% of the cost of items subject to 90% of the cost of items subject to a
a maximum of Rs.10000/- maximum of Rs.15000/-
Rate of Interest 11% 11%
Repayment 48 months 60 months

Marriage Loan
Eligibilty All confirmed employees
Quanturm Rs.50000/-
Rate of Interest 11%
Repayment 60 equated monthly instalments
Second loan can be availed after 3 years from the date of sanction of first loan or after adjustment
of first loan in full

Housing Loan
Eligibilty Confirmation in bank’s service
Quanturm Rs.20 lakhs
Rate of Interest Upto 1 lac 5% simple above one lac base rate
Repayment 240 instalments (180+60)

Supplementary Housing Loan:

Purpose:
Construction/Enlargement/Completion : Rs.3 lakhs
For Repairs : Rs.1.50 lakhs

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OD Facility
Service Limit
> 10 years upto 15 years Rs.2 lakhs
> 15 years upto 20 years Rs.3 lakhs
> 20 years Rs.3.50 lakhs

Conversion of OD facility to Term Loan

Eligibility : Age 50 years and above (40% Net take Home pay including proposed EMI)
Rate of Interest : 10.5% or 2% below BPLR
Repayment : Remaining period of service in Equated Monthly instalment if remaining service
is less than 5 years EMI based on 60 months to be recovered during the period of service and
The balance to be recovered from terminal benefits

31.Settlement of Terminal Benefits

The amount of gratuity payable to an officer shall be one month’s pay for every completed year of
service subject to maximum of 15 months pay provided that where an officer has completed more
than 30 years of service, he/she shall be eligible by way of gratuity for an additional amount at the
rate of one half of a month’s pay for each completed year of service beyond 30 years

24.Our Technological Products

Our Bank has envisaged upon an ambitious plan to emerge as the most trusted, admired and
sought after world class financial institution in the coming days. We need to acquire more
customers especially young customers to achieve this goal. Giving polite and courteous service to
the existing customers at the counter and also behaving politely whenever and wherever we meet
them outside the premises will spread the word of mouth publicity and may bring more
customers.
And for attracting more young customers to our fold, our technological products will come in
handy. Knowing the benefits of our technological products and gaining skill by using it ourselves is
the main condition for us to market it successfully and leveraging its benefits to expedite customer
acquisition.
What are our technological products and what are the benefits the customer gets through our
technological products?
1. E-Banking (Internet Banking)
2. Mobile Banking
3. Visa Debit Card
4. Personlised Multi-city cheque books
5. Western Union Transfer
6. Banking on wheels, bio- metric cards etc.

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E-Banking
The most beneficial technological product for the customer is internet banking. Today’s young
customer has got no time to visit a banking branch to do their banking. The entire gamut of
banking can be conducted by sitting at the convenience of one’s own house, internet café or while
travelling anywhere any time. Even though the day is a holiday or the banks are closed due to any
reason such as bandh, strike etc will not make a difference to the E Banking customer as he will
continue his banking through internet.
UCO e-Banking Services can be performed by sitting at a PC through a link to the Bank’s Internet
Banking Server from the Bank’s Website www.ucobank.com. The Products and Services offered
through UCO e-Banking are
A) Retail Internet Banking
B) Internet Banking for Corporate
c) Kids Internet Banking
Transection limits in e-Banking:

Service Type Per Transaction (Debit) Per Day Per Calendar Month Tax Payment

Retail Internet Banking Rs. 2 Lakh Rs. 5 Lakh Rs. 30 Lakh Full**
Corporate Internet Rs. 5 Lakh Rs. 25 Lakh Rs.200 Lakh Full**
Banking

** For Tax payments, there shall be no limit and customer can pay tax as per the amount available
in their balance. Such payment shall not be accounted while calculating calendar month limit.

FACILITIES AVAILABLE IN UCO e-BANKING SERVICES

1. ACCOUNTS
While clicking on ‘my accounts’ in the menu bar all accounts that linked to the customerid will
be shown in the same page

View Details
If we click on each account , details of that account will be shown were last 8 transactions also
will be shown.
Accounts Statement
Click on the option box>transaction history >go >fill transaction date range>statement.

Transactions
Various types of transactions are allowed through ebanking which are listed below.
A. FUND TRANSFER:-There are three types of funds transfer i.e Self a/c transfer, Third
party transfer and NEFT/RTGS transfer. For self a/c transfer you can transfer from one a/c to the
other a/c which is available in internet banking. Click on self/linked a/c. New page will open titled
between your own a/c’s. Select from the drop down checkbox the account no. from where you
want to transfer and again from the drop down checkbox the account no. into which you want the
transfer to be effected and fill in the amount. The transfer can be effected on the same day or can

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be scheduled on a future date where you have to fill the date in dd/mm/yy format & select the
option by marking in the round box.

For effecting third party funds transfer click on third party transfer under funds transfer
menu. New page will open for registering the payee. > Add New Payee. Another page will open
where you will fill the account number & click on a/c details. The third party’s name & branch
details will be provided by the system. Enter a nickname for the payee & click on Add Payee. An
OAC code (One time authorization code) will be generated by the bank & transmitted to the
mobile phone &e-mail id of the user who sought registration of the payee. The user will have to fill
this OAC code in the column provided by the bank for entering OAC code. If for some reason you
don’t get the OAC code you can regenerate the code by clicking on Regenerate OAC code. Once
the bank verifies the OAC code entered by the user and confirms the registration is completed &
payees name is reflected in the registered payee list. This list has 2 columns i.e Nickname &
Action. Payee will be registered as per the nickname given while registering. Select the payee from
the nick name & click on make payment from the Action column.

For effecting NEFT/RTGS funds transfer click on NEFT/RTGS transfer under funds transfer menu.
New page will open for registering the beneficiary. Click on Add New beneficiary. Another page will
open where you will fill the beneficiary name & nickname then select the bank name from the drop
down check box & select the branch name by clicking on the button box & click on get branch. The
branch details will be displayed. Confirm the branch name & give the a/c no. in the box provided &
select the type of a/c & click on add beneficiary. The beneficiary name & branch details will be
provided by the system. An OAC code (One time authorization code) will be generated by the bank
& transmitted to the mobile phone & e-mail id of the user who sought registration of the payee.
The user will have to fill this OAC code in the column provided by the bank for entering OAC code. If
for some reason you don’t get the OAC code you can regenerate the code by clicking on Regenerate
OAC code. Once the bank verifies the OAC code entered by the user and confirms the registration is
completed & beneficiary name is reflected in the Make NEFT/RTGS Payment. This list has 4 columns
i.e Beneficiary Name, Nickname, Account Details & Action. Select the beneficiary for whom NEFT
transfer has to be effected & click on make payment from the Action column. New page will open
showing all beneficiary details like a/c no. bank name, branch etc. fill in the amount box & select your
a/c which has to be debited by scrolling down the drop down box. Fill the column of information to
beneficiary and tick the check box for terms & conditions & click on transfer. It will carry forward to
the next page giving the beneficiary address. Confirm the same & click on continue for logging to your
transaction password. Once you give the correct password your transfer will be effected and cyber
receipt will be generated.

How the customer can stop payment of his cheque?

Click menu bar ‘My Accounts’. Select the account number ,whose cheque need to be
stopped.Select ‘check status enquiry’ from the drop down list available in ‘options’.And click on
‘go’.If you don’t know the cheque number select ‘query on date’ and give probable dates during
which the cheque might have been issued to you. And click on ‘retrieve’. Cheque number will be
displayed on the next page and note down the cheque numbers which you want to stop. And click
on the box ‘back’.Now click on ‘querry on cheque number’ and enter the cheque number which
you want to stop.And again click on retrieve. If you want to stop multiple cheques, click on that
box or selct the particular cheque which you want to stop and click on the box ‘stop cheque’. It will
lead you to the validation page where you have to give your transaction password and ‘validate’.
The payment of that cheque will be automatically stopped. But customer cannot revoke ‘stop
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payment’. Only branch authorities are empowered to revoke ‘stop payment’ done by the
customer. This is another excellent facility available to the customer.
B. Bill Payment.
Paying bills such as Electricity Bill, Telephone Bill, Mobile Bills etc online. Registration process is
almost the same as that for LIC premium, which is explained below.

C. Paying LIC premium.

A onetime registration with our E Banking will ease the customer from botherations of
remembering the premium pay date and paying it, as our E Banking will take care of his duty of
paying the premium till the maturity of his policy, provided sufficient fund is kept in his operative
account (SB, Current or CC).
By just propagating this scheme, our CASA will increase automatically, as customer will always
keep fund in his savings account. Besides Bank will earn transaction commission from LIC.
Just by visiting LIC office nearby to our Branch, we can catch hold of new customers, from the long
queue of people lining up to make LIC premium.

For registering in Bill Payment for payment of premium of LIC:-

UCOBank site should be opened. Click E Banking,> personal banking > put login id and password.
Ebanking page main page will be opened. Click 'bill payment' on the menu bar.
Another page will be opened. On the left hand side of the page you can see 6 items. Click on the
5th item 'bill presentment’. Another page will appear. Click on payee setup registration. Another
page will appear. Give the payee name as LIC and click on search. Another page will appear. Click
on blue colored LIC. Another page will appear. In this page the customer has to give only three
information. LIC policy number, premium amount and email. Premium amount should be given
with paisa. For example, if premium amount is 1700, the customer should put the amount as
1700.00 Then click on 'add' in the bottom. A number will be generated and note down this
number. Allow LIC and our Bank minimum of 15 days to have the necessary 'handshake' before the
due date of first premium.
Our E Banking will continue to pay the premium to LIC by deducting his account till the maturity. It
s very comfortable for the customer. He needs to keep sufficient amount in his account. For each
LIC policy, the customer should register separately. Once registered, customer can forget about
payment till maturity, if sufficient amount is provided in his account. And customer can have a
good E Banking experience

D. Tax Payment.
Customer can pay tax (Personal income tax and other service taxes) on line. For each tax
remittance made by the customer through his E Banking, our Bank will earn Rs.45.00 as
commission from Income Tax department.
Procedure.
Click on ‘UCO e- Tax payment’ link in the main page of E Banking. (Before Personal
login/corporate login.) Click on ‘direct tax payment’. In the next page click on ‘login’.NSDL e-
payment page will be opened. Select the appropriate Chelan (ITNS280-for individuals).In the next
page first select the tax applicable. Fill up all mandatory columns. And click on proceed. Another
page will be opened. Click on submit to the bank. On clicking this link, your login page will be
opened. Login with your user_id and password. Chelan will appear. Fill up the amount column in
rupees and click on ‘calculate total’. And click on pay. It will direct you to confirm your transaction
with your transaction password. The message will come ‘payment is successful’. Click on ok and

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the receipt will come and save it or take a printout by clicking on the appropriate box. Then click
on ‘generate cyber receipt’ and save it.
Detailed demo is available in our E Banking main page by clicking on the link ’E Banking
Demo’.
Similarly branches can pay the tax of a non customer by depositing his cash in the zero balance
current account opened with scheme code CA 705 and remitting it the same way explained above.
Detailed flow chart is available with circular no.CHO/SUA/63/2009-10 dated 25.01.2010.

E. ASBA- (Application Supported by Blocked Amount) this is the most modern facility offered by
our Bank which is not available to E Banking customers of some of the so called big banks. Our E
Banking customers can apply for IPO and FPO online without any hassle. Application is sent
electronically and the application money is blocked in his Savings account. The money will be
withdrawn from his account, only when he/she is allotted some share. We can utilize this facility
for augmenting our CASA as well as NII. Customers will keep the application money with us and he
will earn applicable interest on the money till it is withdrawn. Bank will earn commission from the
IPO Company. (Customer’s Demat account and trading account can be with any bank or company).
For applying through ASBA, one has to click on the ASBA in the menu bar of their home page in E
Banking. Click on ‘bid cum application’ on the left hand side. It will tell you which are the IPO/FPO
available on that day. Select the appropriate from the drop down list. Customer need to give his
client id, Demat id and pan number. And number of shares. Then click on bid price or bid at cut off
price whichever is applicable. Select the debit account number from the drop down list (Current
account or Savings account).Submit. The receipt will come. Take the printout.

F. Online Share Trading-

This is the latest benefit offered to our E Banking Customers. Customer can trade online through
his E Banking. Customer need to open trading account with M/s Religare and Demat account with
UCOBANK. This facility can be leveraged by our people to acquire new customers young as well as
aged.

G. Customer can request

for issuance of DD, Pay Order etc online. He can order for cheque book online.

H.Customer can change

his E Banking login pass word as well as transaction password through ‘customise’ menu.

I. He can set his SMS password

through ‘customize’ option. Don’t forget to change both login password and transaction
password.

J. He can subscribe for alerts.

By clicking”alerts” menu and then’subscrition’.

K.He can see Maturity Value and EMI

of Deposits and Loan through ‘Projections’ menu in his E Banking.

L. An e-Banking customer can create e-FDR through request option.

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M. Projections: Under this option the customer can get the loan and deposit modeling i.e one can
get the required loan instalment and also maturity of the deposit for a fixed period.

Check list for the branches for issuance of Internet Banking

1. For individuals get Retail application and for firms & companies, corporate application form
2. In case of firms & companies, get suitable resolution/authority letter for transaction or
view facility.
3. For transaction facility, only the authorised operators who operate the account, are to be
made users.
4. View facility can be provided to any one after getting authorisation from the firm.
5. Enter the applications Internet Banking Application Register to be maintained at your
branch. 
6. The columns will contain, Name, Address, A/c.No., Cust Id, Facility whether
Transaction/View, Annexure  sent to HO on (date), User id Received from HO on (date),
Delivered to user against acknowledgement, (date), Activation request sent to HO
(date) etc.
7. After receipt of the application from the customer the information should be send to HO E-
BANKING Cell through IRPS. HO will send user id and pass word which should be delivered
to users against acknowledgement.
8. While sending particulars to HO, please verify the mode of operation of the account to see
whether it conforms to the constitution of the firm.
9. On delivery of the Used ID for E-banking to the customer, the same should be sent for
activation at HO through IRPS.

E-Banking Request Processing through IRPS

How to enter an E-Banking related request?
1. Enter Cust Id of the Customer in the desired field and press enter.
2. If the Customer is an existing E-Banking customer, the Name of the customer and customer
type (Retail or Corporate) will be populated automatically.
3. You need to now select request type from the drop down list.

For Retail Users following requests types are available.

i. Account Activation (need to provide the Date of delivery of password to the user)
ii. Password Reset (need to provide the password reset for i.e. login, transaction or both)
iii. Change Operation Facility (need to provide the facility required i.e. View only / Transaction)
iv. Cust Id Linking (need to provide the cust id to be linked)
v. Account Block

For Corporate Users following requests types are available.

i. Account Activation (need to provide Corp User Name and Date of delivery of password to
the user)
ii. Password Reset (need to provide Corp User Name and password reset for i.e. login,
transaction or both)
iii. Change Operation Facility (need to provide Corp User Name and the facility required i.e.
View only / Transaction)
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 iv. Cust Id Linking (need to provide the cust id to be linked)
v. Account Block
vi. User Block (need to provide Corp User Name to be blocked)
vii. User Addition (need to provide the details of the Corp User Name to be added)
viii. Requests Pending For Verification

Search Requests by request id, cust id, sol id etc.

Last 10 Requests of the Branch
New Requests 1st enter Cust Id of the customer here for any type of request
4. When you select one request type, required fields for the particular request will appear in the
screen. You need to select / enter the desired fields and submit the request.
5. One Request Id will be generated. Please note down the same. Another officer of your Branch
will need to verify the request. Then only the request will come to the E-Banking Cell.
6. If the Customer is not an E-Banking Customer, then the Account No’s of the Customer, Name
and Constitution of the Customer will be populated and request type will be
 Id Creation Corporate
 Id Creation Retail
7. You need to select the option as per the constitution of the Customer. After Selection of the
same, the required fields will appear and you need to select / enter the same.

Verifying E-Banking Related Requests

1. All the entered requests will appear in the pending for verification section. Officer of the Branch
(other than who has entered the request) can verify the requests and send it to the E-Banking Cell.
2. However entered requests can be rejected by any officer, if so desired.
3. Select the option (Send to E-Banking Cell or Rejected) and click on Submit

Searching E-Banking Related Requests

1. Requests can be searched by Cust Id of the Customer; Sol Id of the Branch, Request Id, Date of
entry, User Id of the officer entered / verified the requests.
2. List of requests Ids matching the Search criteria will come and you can click on the request id to
see details of the requests.
3. You can always see last 10 requests of your Branch in the section provided for the same.
Customers desirous of having Internet Banking services shall request for providing such services
through an application to the concerned Branch where they are having their account.

The Login Password:

This will enable the customer to enter the Internet Banking Service.
Transaction Password:
this password is required to confirm transactions such as Funds Transfer, Cheque Book/Stop
cheques etc.
The user shall correctly key in the login password because after three unsuccessful attempts the
user- id gets disabled by the system. On clicking “login” a screen will appear to change the log in
and transaction password. The customer will then be asked to accept the terms and conditions by
clicking the ‘AGREE” bottom. Once the user successfully completes it the Internet Banking Services
would welcome the user.
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The user then can perform the activities mentioned above as per his requirement and enjoy hassle
free, paperless, convenient banking.

UCO MOBILE BANKING

Mobile Banking is the latest entrant in our kitty of technology products. Our Bank launched
mobile banking on our 68th foundation day i.e on 6th Jan 2011. We must be proud of our bank that
as on date there are only a handful of banks that have started this most modern facility. Within
months all the banks in India may start providing this facility all its customers.
The process of starting mobile banking is very simple. The aspirant should have a GPRS, Java
enabled cell phone. Just visit any UCO ATM with your Visa Debit Card and register for mobile
banking through ‘other services’ option which is available on the left hand side bottom of the main
page. Follow the instructions and after successful registration you will get a message which
contains a web address for downloading application software, Application password and MPin. Go
to that web address (by using the ‘use details’ option available in your phone.>use web address).
And start enjoying the vivid experience of UCO Mobile banking.

Check points for UCO MBanking

UCO MBanking service will be available to Savings Bank account holders with single or joint
operation as E/S or Anyone /S facility. It will also be available to Current Account (Individual)
holders. In case of joint holders with e or s or anyone or survivor facility, mandate of other holder
to operate the account is essential. At present, it is confined to holders of UCO Visa/ATM cards as
UCO Visa/ATM cards are issued only to those holders who comply with KYC norms. However, non-
Visa/ATM card holders can also get the facility after they comply with KYC stipulations.

Requirement
Customer must have a mobile device of any make which should be either Java enabled or
Windows enabled.

TRANSACTION LIMIT
Maximum-Rs50000/- per day (Rs5000/= for transfer of funds and Rs10000/= for purchase of goods
and services per transaction)

Registration Process
Registration of UCO MBanking consists of two processes:-
A. Through UCO ATM:
Step 1: Customer walks into the UCO Bank's ATM to register UCO MBanking Service
Step 2: Customer inserts/dips ATM card in the ATM
Step 3: ATM prompts the Customer to enter ATM Card's PIN
Step 4: Customer selects Other Services - Mobile Banking > Registration option in the ATM Menu.
(It will show i) Registration (ii) De-Registration and (iii) Forgot Application Password/ MPin).
Step 5: ATM prompts the Customer to enter his/her Mobile number
Step 6: Customer should enter 10 digit Mobile number and select <Confirm> button.
Step 7: ATM prompts the Customer to Select the Account Type options <CURRENT> or <SAVINGS>
Step 8: If the Customer entered details found valid then ATM displays "Your Mobile Number
Registered successfully" and prints the same
Step 9: If the customer details found invalid, then ATM Displays "Registration Failure",

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Step 10: After successful registration, Customer receives SMS (Service SMS) to his/her Mobile from
Bank containing Mobile Application URL link for downloading the Mobile Application, Application
password and MPin
Step 11: If the customer Mobile handset is enabled for GPRS/EDGE/3G, customer downloads the
application by clicking the URL link in the SMS message
http://mobile.fssnet.co.in/MPAYPORTAL/MobileDownload?
SID=xxxxxxxxxxxxx and downloads the Mobile Banking application to his/her Mobile.
Step 14: After successful download of application, on clicking the UCO MBanking application, the
customer is prompted to enter the Application password and there after MPin, Initially the
application / login password received via SMS is entered, then the user is forced to enter new login
application password. After the same user is prompted to enter MPin or activation code [note:
MPin and Activation Code are same]. The user is forced to enter new MPin. Before performing any
transaction, the communication mode is to be selected i.e. either via SMS or GPRS. The application
password and MPin should be changed mandatorily and the new application password and MPin
should contain any four digit. It is to be remembered that both application password and MPin
should not be same and must be different. Note that after successful Activation, Activation code
called as MPin is essential for each enquiry/transaction authentication. With this the UCO
MBanking registration is successful and completed.

1) Installation using Bluetooth

Customers who have access to Bluetooth on their laptop/PC can transfer the UCO MBanking
application into their handsets by selecting Download button and sending the same file to Mobile
Handset through Bluetooth.
2) Installation using Data Cable
Customers who have access to data cable for their laptop/PC can download the UCO MBanking
Application on their desktop. Customer can transfer this file to their mobile handset using data
cable.
3) Installation using GPRS:
Customers having GPRS facility on their mobile phones can directly download the Mobile
application by invoking the link http:// mobile. fssnet.co.in /MPAYPORTALwhich they get while
registering at the ATM for UCO MBanking

B .Through Branch
Customers who do not have UCO Visa/ATM card or where UCO ATM is not available can go to
branch and submit the application.
1. Customer will submit request for UCO MBanking as per prescribed form (Annexure 1) at the
branch, which will consist of, among other things Mobile Devise Number. On getting the same
from the customer, branch will verify the signature of the applicant and also signature of any joint
holder. It is to be ensured that the particulars especially card number and mobile number
mentioned matches with that available in bank's core banking system.
2. Branch will lodge the request to HO ebanking Cell where it will be uploaded through bulk
uploading system.
3. Customers will get an SMS informing them a link for downloading of Application software and
application password and MPin.
4. On opening the link, application software will be downloaded at the handset of the customer

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5. However, if for some reason, customer is unable to open the link, he may have the application
software downloaded from the website http://mobile.fssnet.co.in/MPAYPORTAL
6. After downloading, customer will be prompted to install the application.
7. After installing the application, customer will open the application with application password
and change the application password.
8. Customer will, then, be prompted to change the MPin. The MPin should have four digits.

UCO MBanking Features

1. Information Services
2. Fund Transfer:
Within the Bank
• Mobile to Mobile
• Mobile to Account
3. 3a. Fund Transfer: Other Bank
• NEFT [beneficiary registration]
• NEFT Payment
4. My Services
a) Bill Payment
b) Airline Ticketing
c) Movie Ticketing
d) Shopping

e) Mobile Recharge
f) Temple Donation
g) Fees Payment
h) Other Services
i) Stop Cheque
ii) Cheque Status
iii) Block Card
IV) Locator
ATM Locator
Branch Locator
REQUEST TO BANK
Request for Cheque Book
Request for A/C statement
Request for Fixed deposit
Request for Loan
Request for Credit Card
Request for New Account

MY SETUP
i. Enable or Disable Transaction - Enable or disable the transactions in application.
ii. Change Service Number - A Service number is provided, please do not make any change to
this number.
III. Change Enter Service URL - A service URL has been provided not to be changed.

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 iv. Save Application in Memory - Select "Yes" or "Save" in order to save the messages received in
the inbox.
v. Communication Mode - Select communication mode either GPRS or SMS according to your
requirement.
vi. Refer a Friend - Enter MPin, mobile number and email id of the friend whom you want to
enjoy the benefits of Mobile banking of the bank.
vi. Email id Configuration - Enter MPin and then incorporate your email id.
vii. WAP Option - If the handset is WAP enabled, you can use this option.
ix. Change Login Password - You can change your login password by entering your old password,
then new password and then re-enter the new password.

Change MPIN
Select this option. Then enter old MPin, after that enter new MPin, then Re-enter new MPin Click
'Yes' for "Allow application uco e-Banking to send text message for authentication.

Generation of Duplicate Application Password/MPin

In case of requirement of generation of new application Password or MPin, users can go to UCO
Bank ATM, insert their card and validate it by providing PIN and go to Other Services. They can
choose from the screen Forgot Application
Password/MPin and a new Application Password/MPin will be sent to their mobile number.
De Registration from UCO M-Banking
1. Through UCO Bank ATM
2. Through Branch
Minimum Balance and Charges
There is no specific minimum balance or charges for UCO EBanking. However, normal banking
rules for minimum balance shall apply. Similarly, there is no charge for UCO MBanking. However,
customers will have to bear normal SMS/GRPS charges as applicable for the services.

Accounting of UCO M-Banking Services

Over the last few years, the mobile and wireless market has been one of the fastest growing
markets in the world and it has become an essential communication tool for almost every
individual.  UCO Bank has remained committed to the customer and has taken several initiatives to
expand the bouquet of choices for its customers.  Now our Bank has come with one more new
initiative viz. UCO mBanking.
 
“The account that travels with you". This is needed in today's fast business environment. 
Mobile banking which is an integral part of mCommerce has become very popular among mobile
users ever since its existence in 2007. It creates new, convenient communication and fast financial
transactional channel for mobile users which is accessible from anywhere, anytime.
 
UCO mBanking Services is a full fledged application based Mobile Banking Solution available
on mobile phones (SMS/GRPS) where the user is required to download the application software on
to the mobile handset.
 

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Applicability of UCO mBanking Services 
a) UCO mBanking service will be available to Savings Bank account holders with single or joint
with E/S or Anyone /S facility.   It will also be available to Current Account – Individual
holders.
b) In case of joint holders with E or S or Anyone or Survivor facility, mandate of other holder
to operate the account is essential.
c) At present, it is confined to holders of UCO Visa/ATM cards as UCO Visa/ATM cards are
issued only to those holders who comply with KYC norms.  However, non-Visa/ATM card
holders can also get the facility after they comply with KYC stipulations.
d) The service will be carrier-agonistic i.e. all customers can avail the services irrespective of
the service provider for the mobiles.
e) At present, the service is free of charge.  However, SMS/GRPS cost will be borne by the
customer as and when required to avail the services. 

Requirement
Any phone or mobile operator is supported by the system.UCO mBanking works on even the most
basic phone (GSM or CDMA) and does not require any special tariff plan or mobile operator
registration.

Registration Process 
Registration of UCO mBanking can be done through either of the following two processes:-   

A.   Registration through UCO ATM: 

1. Customers can walk in at any ATM of UCO Bank and click at the Other services.  They can
choose Mobile Banking Registration. It will show
i)           Registration
ii)         De-Registration and
iii)        Forgot Application Password/ mPin. 
After selecting Registration, system will ask the customer to give her/his Mobile Number. It will
then ask to select the account type of the account to be linked viz. Savings or Current.  On
choosing, it will confirm registration and a receipt will be issued quoting the card no. with the
message “Your Mobile Number Registered Successfully”
2. Customers will get an SMS containing a link for downloading the Mobile Banking
Application Software. SMS will also contain application password and mPIN of the Mobile
Banking Services.
3. On opening the link, application software will be downloaded in the handset of the
customer
4. However, if for some reason, customer is unable to open the link, s/he has the option to
download the application software from the website
http://mobile.fssnet.co.in/MPAYPORTAL and copy it to her/his mobile handset.
5. After downloading the application software, customer will be prompted to install the
application.
6. After installing the application, customer will open the application with application
password and system will force the user to change the application password, initially
provided by the system at the time of registration.
7. Customer will, then, be prompted to change the mPIN.  The mPIN should have four digits.

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B.    Registration through Branch
Customers who do not have UCO Visa/ATM card or where UCO ATM is not available can go to
branch and submit the application. 
1. Customer will submit request for UCO mBanking as per prescribed format (Annexure 1) at
the branch, which will consist of, among other things, Mobile Number of the customer.  On
getting the same from the customer, branch will verify the signature of the applicant as
also signature of any joint holder.  It is to be ensured that the particulars especially card
number mentioned in the application form matches with that available in bank’s core
banking system.
2. Branch will lodge the request to HO ebanking Cell through IRPS, where it will be uploaded
through bulk uploading system.
3. Customers will get an SMS containing a link for downloading the Mobile Banking
Application Software. SMS will also contain application password and mPIN of the Mobile
Banking Services.
4. On opening the link, application software will be downloaded at the handset of the
customer
5. However, if for some reason, customer is unable to open the link, , s/he has the option to
download the application software from the website
http://mobile.fssnet.co.in/MPAYPORTAL and copy it to her/his mobile handset.
6. After downloading, customer will prompted to install the application.
7. After installing the application, customer will open the application with application
password and system will force the user to change the application password, initially
provided by the system at the time of registration.
8. Customer will, then, be prompted to change the mPIN.  The mPIN should have four digits.

Password Properties 
Users will be provided with two password by way of SMS
(i)     Application Password and
(ii)    mPIN. 
Application Password is required for logging into application.  After initial login system will ask for
changing the password.  Similarly, system will prompt to change mPIN.  At the time of first login,
both the application password and mPIN are to be changed mandatorily.  Passwords should
consist of four digits and both, the application password and mPIN should not be same.

Login Procedure
Once the application is installed, an icon or list in the name of UCO mBanking with bank’s logo
will be visible in the mobile.  Users will have to select the icon.  System will ask initially whether
s/he is a new user or old user.  For first time login after Registration, user should select as a new
user and for subsequent utilization, s/he should select as old user.  However, in case of change of
mobile handset or change of mobile number, user should select as old user. 
Once it is selected as new user, system will ask to put the Application password and to change
it.  Once validated, it will mandatorily prompt the user to change the mPIN. 
After changing both the application password and mPIN, system will prompt for
communication mode viz. SMS or GPRS.   By default, mobiles are under SMS mode only.  However,
depending on the choice of user, it can be changed to either SMS or GPRS.

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 For subsequent use of the application, users will have to simply select the UCO mBanking and
put the application password and mPIN.  For any utilization viz. balance enquiry, mini statement,
fund transfer etc mPIN is required and only validation result will be exhibited. 
  
UCO MBanking Services
Informational Services
I. Balance Enquiry
II. Statement of Accounts
III. Holding, Bill and Scrip enquiry in Demat A/c

Transaction Services
           Fund Transfer –
i)        Within Bank
a)    From Mobile to Mobile
b)    From Mobile to account
ii)     Other Bank –
a)    Through IMPS
b)    Through NEFT

 Booking of Airtickets, Movie Tickets

 Utility Bill Payment,
 Donation to Temple, Charity
Request Services
 Cheque Book
 Statement of Accounts
 New Pin or Change Pin
 Cheque Status Enquiry
 Stop Payment of Cheque
 Hotlisting of ATM/Debit Card
  
Transaction Limit
UCO mBanking shall be subjected to a transaction limit as specified by Reserve Bank of India with
daily maximum limit of Rs.50,000/- (Rs.5,000/- per transaction for fund transfer and Rs.10,000/-
per transaction involving purchase of goods and services).
 
Utility Bill Payments
Customers will be able to avail Utility Bill Payments through UCO mBanking.  For this purpose, pool
account system, i.e. accumulation of all payments to a single collection account will be used, as in
the case of UCO eBanking, and from there the payments will be made to different utility billers. 
Existing nodal branch for UCO eBanking utility payment will function to take care of utility bill
payments through UCO mBanking as well.   A new collection account number 00030210001646
may be utilised for the purpose for settlement of utility bill payments of UCO mBanking.

Generation of Application Password/mPIN

In case of requirement of generation of new application Password or mPIN, users can go to UCO
Bank ATM, insert their card and validate it by providing PIN and go to Other Services.  They can

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choose from the screen Forgot Application Password/mPIN, and a new Application
Password/mPIN will be sent to their mobile number.
 
De-Registration from UCO mBanking
 Customers shall be able to withdraw from UCO mBanking by two processes: 
 Through UCO Bank ATM
 Through Branch

Through UCO Bank ATM

Customer can walk in at any UCO ATM, insert their card and validate it with his/her PIN.  They can
choose Other services – Mobile Bank Registration – De –registration.  They system will prompt to
put his mobile number.  On putting the mobile number, system will give a receipt “ De-Registration
of your Mobile Number is successful”
 
Through Branch
Customers can give a letter in writing quoting their mobile number for withdrawing from UCO
mBanking.  Branch will lodge the request to HO, which will be uploaded at their end. 
 
Minimum Balance and Charges
There is no specific minimum balance or charges for UCO mBanking.  However, normal banking
rules for minimum balance shall apply.  Similarly, at present there is no charge for UCO mBanking.
However, customers will have to bear normal SMS/GRPS charges as applicable for the services.
 
VISA DEBIT CARD
A bankcard used to make an electronic withdrawal from funds on deposit in a bank, as in
purchasing goods or obtaining cash advances. Our Bank has stopped issuing ordinary ATM
card and now the all-powerful Visa Debit Card is issued by us to all our aspirant customers. Our
card can be used internationally. We can approach Hajj pilgrims and other people intending to visit
abroad and can market our Visa Debit Card. When people use our card in any Visa enabled ATM
abroad, the currency of respective country is delivered to him. Our bank will earn some exchange
profit from these transactions. Also customer will keep his money in our account. Our card is
accepted by almost all merchant establishments within the country and all over the world, for
purchases. By popularizing Visa Debit Card, we can acquire new customers as well as increase our
CASA and NII.

How can our Visa Debit Card be used for online payment?
First visit our Bank’s website www.ucobank.com in internet explorer. In the home page there is a
link “Visa debit card -verified by Visa-(vbv)registration”. Click on that link which will take you to
another page.Click on the link “ new user Register”. Fill on mandatory coulumns and create your
own password for online payments. This is a one time registration. After the completion of this
process our card can be used for any online payment just like we use credit cards.Our Bank has
decided to issue Visa Debit Card to minors who attained 14 years of age

Example using our visa debit card for railway ticket booking.
Visit www.irctc.co.in . Create a userid and password for railway site. After completing the initial
filling of data such as train , passenger etc click the 'make payment' option . Select  payment
gateway of any bank such as ICICI /Axis/Citi bank etc.  Give  our debit card number and cvv . It will
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direct you to another page where you have to give the password which you have created through
'verified by visa registration'  link of our website *www.ucobank.com*
cvv is the last three digits that appear on the reverse side of our card.

Example using our visa debit card for mobile recharge.

Visit www.rechargeitnow.com
Create your own userid and password for this site by clicking “new users register”.
Sign I with your newly created userid and password.Select the mobile service provider by clicking
on the appropriate icon.Give the number of your mobile and click on ‘go’.Give the amount and
click on ‘continue’.In the next page select payment option as ‘debit card’ and further details as visa
debit card.In the next page select other bank vis/master card and give the 16 digit number of our
card ,exiry date and cvv.click next will take you to another page were we have to give the verified
by visa card password created by you .click submit.
The process is almost same for online payment for other facilities such as airline ticket
booking,purchase of books,donation to religious institution,universities,Government payment etc.

Debit Card Issue process.

1. Non-Personalised Cards
1.1 Delivery of Non Personalised Cards
1.2 Delivery of Non Personalised Add-on Cards
1.3 Card Re-Issue
2. Support Functions
2.1 Link/De-Link of Accounts
2.2 Pin-reissue
2.3 Change card status
3. Un-verified records (other than inventory)
4. Inventory Maintenance
4.1 Card received entry
4.2 Mark card not received
4.3 Move cards to Issuable inventory
5. Report
5.1 Card Information Report
5.2 Card Request Report
6. Customer Information
6.1 Card details for a given Account Number
6.2 Account Details for given card number
6.3 Get new Account number for old Account Number.

Inventory Maintenance:
Upon getting the request from branches for new cards, the Head Office, ATM Cell, will generate
the VISA Debit cards and a file will be sent to branches through menu option GARUDA, from where
the branches can download the file consisting of the card nos. to be uploaded in the inventory.

Procedure for uploading the Inventory in Finacle:

Copy the file to c:\
In the finacle Main menu screen,

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Step 1:
 type the menu option PTW.
 Option no. 20 (ATM Inventory upload)
 Enter the filename: (Enter the filename that has been copied at c :\)
 press F4
 The system will display as follows
Transfer of Files from PC side to UNIX side is processed.
Press any key to continue.
 Press F4
 Press ‘q ‘and F4.

Procedure for uploading the Inventory in Finacle:

Copy the file to c:\
In the finacle Main menu screen,

Step 2:
Type the menu option DCR (Debit Card Request) and press enter key
Click on Inventory Maintenance.Another screen will appear.
Function code: A
Request type: R- Received cards entry
Upload file name: type the upload file name here.
Click on upload
The screen will appear showing the card numbers
Click on Accept, the system will generate a Request number. The cards that the branches will
receive physically have to be checked with the inventory that will get uploaded.

For the branch ‘A’, if the cards issued, say, 500, and if the branch upon physically counting the
cards received physical cards, say, 495,whereas the inventory uploaded is 500, thus there is a gap
of 5 cards which branch did not receive, the branch should mark these cards as Inventory not
received. For the remaining cards, that has not been
Received by the branch, the card numbers upon receiving later has to be input in a simple
text-file and should be uploaded again using DCR menu option.

Function code: A
Request type: M- Marks card not received
Request number: Click on the tree (search button) and select the particular request number which
the system got generated while uploading the inventory.
After selecting the concerned request number, the inventory that got uploaded will be displayed
with from card No. and to card No.Click on Accept.
In the checked column, click the Box for the particular card no. which has not been received
physically by the branch, and in the remarks column mention the reason, the same card number
(inventory) will not be uploaded into the branch inventory.

Example: In the above screen, the record no. 4 was not received by the branch, where in it has
been mentioned in the checked box by clicking and the remark column has been mentioned as
INVENTORY NOT RECEIVED.

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Click on accept. The screen will display as Record added successfully.

Note: Any user in the branch can enter the inventory and the same user has to mark the inventory
for ‘Mark card not received’ in case of non-receipt of that inventory. The user having work class
more than 150 has to verify the inventory

Verification of the Inventory Maintenance:

Menu Option: DCR
Function Code: V
Request type: A – Move cards to Issuable inventory
Click on accept. The system will display as Record verified successfully.

Report of the Inventory Maintenance:

A report can be taken by the branch for the records that has been
Uploaded in to the inventory. The report will be generated only in the
user where the inventory has been verified.

Menu option : PR (Main menu)

Report Name : Inventory movement report
The branch can take the print of the report by copying the report to C:\Finaclereports.
The report contains the following information;

Sl.No. Card number Account Linked Customer name Customer Signature Bank use

The details of the Card numbers (Inventory) that got uploaded in inventory will be displayed
here. The branches can take the print of the same and file in a ledger or paste in a ledger. The
same can be used for future reference whenever the card is delivered to the customer, the
signature can be obtained, and the account number of the customer can be incorporated in the
account linked column.

Issuance of Non personalized cards

Menu Option : DCR
Click on the radio button : Non personalised card
Function: Add
Request type: Delivery of non personalised cards
Account Number : (Give the account no. to whom the card has been issued.)
The account no. can be selected even by clicking on the search Tree
Validate A/c.: After clicking on validate A/c. the system will show a dialog box by displaying the
customer account name

After verifying the Account number and account name, the branch upon clicking on close, the
Card Number field will be highlighted.
Card number: The card number can be selected by clicking on search tree. The entire card
data of the branch will be shown, where the branch can click on the card no.
Click on ACCEPT.
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The Cust id, Customer Name, Scheme code, Scheme Description, and Mode of operation,
Communication address, City, State, Pin code, and Date of birth will be automatically picked up
from Finacle (CUMM).
Note: All the above fields are mandatory, where in the system will not allow you further for
processing. Ensure all the data fields has been duly entered in CUMM.
Click on ACCEPT

The screen will be displayed as

“DATA INSERTED SUCCESSFULLY WITH REQUEST NUMBER”.
The syntax for the Request number is XXXXDDMMYYNNNNN where XXXX: Sol_ID (Branch code)
DDMMYY: Date, Month, Year
NNNNN: Running serial Number.

VERIFY
Menu Option: DCR
Click on Non personalised cards. The screen will appear where put
Function: Verify
Request Number: Click on tree, a Dialog box will be opened giving the details of Request Number,
Event Description, Entered by, Verified by, Request Status.
Upon clicking on Request Number, the request number will be displayed in
the Request number column. Click on ACCEPT. The screen will be displayed.

Click on Accept. The system will display the message as “Data Verified successfully for the request
number “

MODIFY
Function: M – Modify
Any data required to be modified has to be done before verification of the request. The data like
Phone Number, Father’s or Husband’s name, Mother / Guardian Name, Place of Birth can be
modified. Rest of the fields, if require modification, has to be done through CUMM in finacle.
Verification is must after modification.

CANCEL
Function: C – Cancel
Any data to be cancelled is to be done before verification of the request. The request Id will be
cancelled.

DELETE
Function: D – Delete
1. After verification of the data, if the data required to be deleted, the data can be deleted.
2. The data cannot be deleted once the data has been downloaded at Head Office level.
3. Verification of the data is required if the data is deleted.

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Delivery of Non personalised Add-on Card
Menu Option: DCR
Function: Add
Request type: Delivery of Non Personalised Add on Card
Card Number: The system will prompt you to ‘Please enter the primary card
number in the card number field.
After entering the card no. in the card number field, click on ACCEPT.
The system will display all the fields relating to the primary account holder including address and
date of birth.
The card no. delivered to the Add-on customer should be picked by clicking on search tree or by
physically entering the card no.
Click on ACCEPT. The system will display that “Data entered successfully “with the request
number, where the same has to be verified using the same option.

CARD REISSUE
Menu Option: DCR
Click on Non-Personalised cards
Function: ADD
Request type: Non Personalised Card reissue
After clicking on Request type, the system will display as follows
“Please enter Old card number in card number field”
Note: Ensure that old card number is first hot listed at switch. To hotlist the card, the branch can
contact Help line Number on 18003453337 /18003450123. Only for the hot listed cards, reissue
can be done.
 Type the card no. which has been hot listed in the card number field.
 Click on ACCEPT.
The system will display the old card number and customer name along with the address of the
customer. If there is any change in the address, the same has to be updated in the CUMM of the
Finacle main.
New Card Number: Through the search button, the user can select any card or if the user knows
the card no. the same can be typed in the new card number field.
Re-issue Remarks: The remarks field is Mandatory. The reason for reissuing of the card has to be
mentioned in the column. With all the above,
Click on Accept. The system will generate a Request Number which requires verification.

Verification:
Menu Option: DCR
Click on Unverified Records (other than Inventory) Or Click on Non Personalised cards
Go to Verify Option and click on tree to select the Request Number Option and click on ACCEPT.
The system will display the message that “Data Verified successfully with the TRANID ________ for
the Request No. “
NOTE: For the card re-issue, the system will automatically deduct the charges from the primary
account. If the balance is not available in the account, the system will put the entry in ENTERED
Status.

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SUPPORT FUNCTIONS
The following types of support functions can be performed against the active card:
Link/ De-Link Accounts
Pin re-issue
Change card status
Note: Branch has to note that for a single card only one request can be given on the same day.
Menu Option: DCR
Click on Support functions

LINK-De-Link Accounts
Function: Add
Request type: Link-De-link accounts
Card Number: Enter the card number for which linking or de-linking of account is required
The system will display the card number, customer name and Primary Account No.
Here there are two functions;
Link Account
De-link Account

Link Account:
Function: Link Account
Link Account Number: Give the account No. to be linked to the card.
Note: Ensure proper verification of the Signature and the customer because any account no. of
any branch of the scheme type SBA, ODA (Staff) and CCA (Individual) can be linked to the
card.After giving the account number the system will show a dialog box giving the status as “Valid
Account Number. The system will display the Account
Holder name”. Click on Ok. Click on Accept.
The system will display the message “Account is linked successfully with
the card no. _____________________. Request number is __________".
Verification of Account Linking
Menu Option: DCR
Click on Support functions menu Or
Click on unverified records (other than inventory)
Function: Verify
Request Number: Click on the search (tree)
Click on ACCEPT
The system will show the link account number. Click on ACCEPT.
The system will display the screen “Account is Linked Successfully with the Card Number:
_________”

De-link Account
Menu option: DCR
Function: Add
Request type: Link-De-link accounts
Card Number: Enter the card number for which linking or de-linking of account is required. The
system will display the card number, customer name and Primary
Account No.
Function: De-link

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The accounts that got linked to the card will be displayed on the screen under linked accounts
field.
The Account Nos. linked to the card only can be delinked. The primary account cannot be delinked.
After input of the account no. to be delinked, in the account number field, the system will display
the customer name. Click on accept, the system will show as
“Account is De-Linked Successfully from the Card Number: ___________________. Request
Number is_____________”
Verification of Delinked account
Menu Option: DCR
Click on Support functions menu Or Click on unverified records (other than inventory)
Function: Verify
Request Number: Click on the search (tree)
Click on ACCEPT
The system will show the De-link account number. Click on ACCEPT.
The system will display the screen “Account is De-Linked Successfully with the Card Number:
___________”

PIN RE-ISSUE
Menu Option: DCR
Click on Support functions.
Give the card number in the card number field where duplicate pin request has been received.
Click on ACCEPT

The card number and the customer name along with the address will be automatically picked up
by the system from CUMM of finacle. If there is any change in the address, the same has to be
modified in CUMM and subsequently verified.
Remarks for re-issue: In the column, give the reasons for reissue of the Pin.

Click on ACCEPT.
The system will display the following; “Pin Re-issue is done for the Card Number: _____________
with the request number___________________”

Verification of the request for PIN RE-ISSUE

Menu option: DCR
Click on support functions Or Click on unverified records (other than inventory)
Function: Verify
Request Number: Click on search (tree)
Click on ACCEPT.
The system will display the message that “Data Verified successfully with the
TRAN ID ________ for the Request No. “
NOTE: For the card Pin re-issue, the system will automatically deduct the charges from the primary
account. If the balance is not available in the account, the system will put the entry in ENTERED
Status.

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CARD STATUS CHANGE
Menu Option: DCR
Click on support functions.
Function: A-Add
Request type: Change card status
Card No. : Give the card no. for which the card status has to be changed.
Click on Accept.
If the card is not activated, the card status will be shown as “In-active”.
Once the request is send by the branch for activation, upon downloading the request at Head
Office and the same is processed, after reverse upload, the status of the card will be shown as
‘ACTIVE”.
Card Status: Valid status is S-Surrendered and B-Broken.

Surrendered status:
At the time of closing of the customer
account where the customer holds any card, there is a validation displaying by the system, to
collect the card before closing. The system will not allow the account to be closed. At this point of
time, the user has to visit the screen and mark the status of the card as surrendered. Once the
card is made the status as surrendered, the user will be
allowed to close the account on the same day.
Care: In case of surrendered cards, no further card can be issued to the Account and support
functions like Linking of accounts, Delinking of accounts etc. will not be allowed further.

Broken:
If the customer reported that the card is not working properly or black strip on the back of the
card is not proper and if the card is in damaged shape, the user has to enter the status of the card
as BROKEN.
Note: Further if any card is required to be issued to the account can be issued in Card-Reissue
option.
Caution: IN CASE THE CARD HAS BEEN REPORTED AS LOST OR STOLEN, THE CARD HAS TO BE
HOTLISTED. KINDLY CALL THE CALL CENTRE ON NO. 18003450123 /18003453337 FOR HOTLISTING.
Also, the request for hot listing can be sent through email id: [email protected].
Once the status of the card has been changed by the user and after clicking on ACCEPT, the system
will display as follows; “Card Status is changed for the Card Number: __________with the request
number________________ “
The request has to be verified by using the menu option DCR and function VERIFY

REQUEST DETAILS
To know the entire history of the card, the branch has to visit the screen of Request details.
The procedure is as follows;
Menu option: DCR
Click on support functions
Click on Request details
The system will ask to enter the card no. in the card number field. After giving the card no.
in the field, click on again on Request-detail

The system will display the following details

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Report date, Card Number, Account Number, Card holder Name, Customer Id, Card expiry date
followed by Request type : Activation, Link, De-link, Re-pin, Reissue
Request Number: The concerned request number of the requests made to the card.
Processed date: The date of the activity that has taken place to the card.
Process Status: If success in processing the request, the message will be shown Request Id and
status as done. If there are any exceptions encountered, the concerned error message will get
displayed.
Link Delink Account: the account that got linked and delinked to the card will be displayed against
the request type.
Entry User_id: The user_id who has entered the request will be displayed.
Verified User_id: The user_id who has verified the request will be displayed

CUSTOMER INFORMATION
This is a utility provided to the branches. In this option, the branches can know the history of the
card by giving the required details.
Menu Option: DCR
Click on radio button Customer Information
The following three options is available
Card details for given account number
Account details for given card number
Get new account number for old account number.
Card Details for given account number.
In this menu option,
Click on radio button Card Details for given card number. It will ask you to enter the account
number, after input of the account No., click on Accept button. The system will display the details
like Card No., Name of the card, whether the card is Primary or Add-on card, the date of the
activation of the card, status of the card and status change date for the account given Account
Details for a give card number
Click on radio button “Account Details for a given card number”. Enter the card no. and click on
Accept The system will display the Card number, Primary Account Number,
Card holder name, Primary/Add-on-card (P/A), Activation Card, Card Status (A-Active, I-Inactive, H-
hot listed), status change date. And also, the system will display the linked accounts to the card.

Get New Account number for Old Account number

The situation will arise when the customer is not aware of his new account number and also the
sol_id where he is maintaining the account. During the scenario, the branch user can select the
branch code from the list. Select the branch and give the old account number. After giving the
account number, click on accept. The system will display the following fields,
Sol_id, OldA/c.No., New A/c. No., Account Name, Cust_id, Address1,
Address 2, City code, State code, pin code, Phone number, Date of Birth.

DO’s AND DO NOT’s

Card Information Report (Scroll) should be maintained properly.
Missing Cards/PIN Mailers in transit should be informed to ATM Cell.
Lost cards should be hot listed instantly over phone/mail before issuing another card. (The toll free
nos are 18003450123/3337 and email id is [email protected])

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Do the proper authentication of the customer before issuing cards.
At the time of issuing Add-on cards check the a/c should be a joint a/c and the related party
details of the account entered properly at a/c level.
Do not change the status of the card as “Surrender” unless the a/c is going to close.
Cancellation of any request can be done before verification. Deletion of any request can be done
before downloading data by ATM Cell.
Hotlist not required for Expired cards.
Do not debit the renewal charge manually. System will debit w.e.f 01.04.2010.
Do not enter a new request for a particular card, unless previous request of the particular day is
not processed at Head Office, ATM Cell. (Except card status change)

ATM (Automated Teller Machine)

Q. 1 what is an Automated Teller Machine (ATM)?
Ans. 1. Automated Teller Machine is a computerised machine that provides the customers of
banks the facility of accessing their accounts for dispensing cash and to carry out other financial
transactions without the need of actually visiting a bank branch.

Q. 2. What type of cards can be used at an ATM?

Ans. 2. The ATM cards/debit cards, credit cards and prepaid cards (that permit cash withdrawal)
can be used at ATMs for various transactions.

Q. 3. What are the services/facilities available at ATMs?

Ans. 3. In addition to cash dispensing ATMs may have many services/facilities such as:
Account information
Cash Deposit
Regular bills payment
Purchase of Re-load Vouchers for Mobiles
Mini statement
Fund transfer
Pin change

However, The services offered may vary from bank to bank, or may depend on the capacity of the
machine to provide such services.

Q.4. How can one transact at an ATM?

Ans. 4. For transacting at an ATM, the customer insert (swipe) their card in the ATM and enter
their Personal Identification Number (PIN).

Q.5. Can these cards be used at any bank ATM in the country?
Ans. 5. Yes. The cards issued by banks in India should be enabled for use at any bank ATM within
India.

Q.6. What is a Personal Identification Number (PIN)?

Ans 6. PIN is the numeric password for use at the ATM. The PIN is separately mailed / handed over
to the customer by the bank while issuing the card. This PIN has to be reset to a new PIN by the
customer. Most banks force the customers to change the PIN on the first use. The PIN number

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should not be written the card, card holder etc as in such cases the card can be misused if card is
lost / stolen.

Q. 7. What should one do if he forgets PIN or the card is sucked in by the ATM?
Ans. 7. The customer may contact the card issuing bank branch and apply for retrieval/issuance of
a new card. This procedure is applicable even if the card is sucked in at another bank's ATM.

Q. 8. What should be done if the card is lost / stolen?

Ans. 8. The customer may contact the card issuing bank immediately on noticing the loss so as to
enable the bank to block such cards.

Q. 9. Is there any minimum and maximum cash withdrawal limit per day?
Ans. 9. Yes, banks set limit for cash withdrawal by customers. The cash withdrawal limit for use at
the ATM of the issuing bank is set by the bank during the issuance of the card. This limit is
displayed at the respective ATM locations. For cash withdrawals at other bank ATMs, banks have
decided to maintain a limit of Rs 10,000/- per transaction. This information is displayed at the ATM
location.

Q. 10. Do banks levy any service charge for use of other bank ATMs?
Ans.10. Charges are payable for using other banks' ATM for cash withdrawal up to five transactions
with a maximum transaction limit of Rs. 10000/- from only saving account.

Q. 11. What should be done in case during the cash withdrawal process, cash is not disbursed by
the account gets debited for the amount?
Ans.11. The customer may lodge a complaint with the card issuing bank. This process is applicable
even if the transaction was carried out at another banks ATM.

Q.12. How many days maximum would the bank require to re-credit the account for such wrong
debits?
Ans.12. As per the RBI instructions, banks may re-credit such wrongly debited amounts within a
maximum period of 12 working days.
Q.13. Are the customers eligible for compensation for delays beyond 12 working days?
Ans.13. Yes. Effective from July 17, 2009, banks shall have to pay customers Rs 100/- per day for
delays beyond 12 working days. This shall have to be credited to the account of the customer
without any claim being made by the customer.

Q.14. In case the compensation is not credited as mandated, what recourse does the customer
have?
Ans. 14. For all such complaints customer may lodge a complaint with the local Banking
Ombudsman if the bank does not respond.

Q.15. What are the contact details of ATM vendor?

Ans 15: For DIEBOLD ATM – 1800222653/18002092653
For NCR ATM – 18002095657/18002095658/18002095655
For AGS (Wincar) - 18002090247
In case of Offsite ATM contact Offsite maintenance vendor. Concerned ZITC & ATM Cell, Head
Office be contacted in case of any unresolved issues relating to ATM.

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Q. 16. What are the contact details of our nodal branches?
Ans 16: In case of National Financial Switch (NFS)
Nodal branch: Treasury Branch Mumbai - +91-22-66547359, +91-22-23378249
email id – [email protected]
In case of VISA and Point of sales (POS)
Nodal Branch: Nariman Point Branch, Mumbai+91-22-40549119, +91-22-23379507
email id – [email protected]
In case of ONUS the concerned branch having ATM Cash GL Account to be contacted.

Q.17. How an ATM debit card can be hot listed/de activated?

Ans 17: The card can be hot listed/deactived by calling at the Help Desk toll free No. 1800345337
and 18003450123 functioning 24X7 - [email protected] .The same can also be done
by sending details at Head Office, ATM cell – [email protected] /+91-33-23347154,
+91-33-23213039 /Fax -+91-33-23595608 during working days.

Q.18. How is daily ATM transaction reports from FSS switch sent?
Ans 18: The daily transaction report are sent through email to respective ATM owning branches via
Email. Hence the Branch must send their email address to FSS for getting daily reports. Ensure
upkeep email system and check the reports daily basis without fail.

Q.19. Whom to contact on not receiving the daily reports?

Ans 19: FSS Chennai through email id [email protected] / [email protected] and a
copy [email protected]

Personalised Multi City Cheque Book

How delighted we would be , if we get a cheque book with our name , account number ,
branch details etc are printed on each leaves , when we open an operational account with
our bank?. Our bank has introduced personalized multi-city cheque book in May 2007.
Personalised multi-city cheque book can be issued to any operative account viz. SB, CA and
CC. The required numbers of book for each account holder is to be indented through our
zonal office on the required format (attached). Zonal office, with its recommendation, will
send the indent to the vendor.
M/s Calcutta Security Printers Ltd.,
12/478, Mc.Robert Ganj,
Kanpur -208001

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 Multi-City Cheque Book Indent Format

UCO BANK
BRANCH Tel:
Tp
The Zonal Manager
Zonal Office, RE: Indent for printing of Multicity Cheque Books
BRANCH NAME (……….) : ADDRESS :
CITY : PIN :
PHONE :
SFMS/RTGS/NEFT CODE : UCBA000
SWIFT CODE ; UCBAINBB

Sl.No Name of Type of No. of Cheque CustomersAc Client’s name and /or with Remarks
. the Account Books being count Designation(as required for
Customer (SB/CD) requisitioned (For Number (to printing on the cheques as
C/A cheque book be printed Proprietor/Partner/Director/Auth
contain 50 leaves on the orised Signatory as Applicable)
and for SB A/c cheque
cheque book leaves)
contain 20 leaves

Sr.Manager
Asst.Manager

To,
M/s Calcutta Security Printers Ltd.,
12/478, Mc.Robert Ganj,
Kanpur -208001

We request you to supply the required no. of Cheque Books to the branch as per the
particulars given above duly printed with name & A/c No. of the depositor & the name of
the issuing branch printed on each Cheque leaf. The required number of Cheque Books
must be supplied within the stipulated time period

Date: Authorised Signatory

Zonal Office
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Western Union Money Transfer
Our arrangement with Western Union Money Transfer for remittance from abroad, can be utilized
for increasing our customer base. People are coming to our branch for receiving their money with
MTCN and ID proof. By just getting a photo additionally, we can utilize the opportunity to
persuade them to open an account with us. Initially he may not keep much funds in his account.
Experience proved that gradually that customer will become an asset for us.

Bio Metric Cards and Banking on Wheels

Our Bank has already introduced bio metric cards for impaired and illiterate rural folks. This is
another initiative on the direction of financial inclusion. Another new initiative from our bank is
banking on wheels, where a mobile van with finacle PC will roam around 3 or 4 villages regularly
and conduct all type of banking to the less privileged people of our country.

Will or Skill?
It is the will rather than the skill that is helping us to market our banking products especially our
technological products effectively. Yet acquiring skill will be an additional quality. The only way to
acquire skill of our technological product is to own it and use it and enjoy the benefits by ourself.
Once we are convinced about our own products, it will be easy for us to market it. And we are sure
that by just marketing our technological products with all our vigor and enthusiasm, we can take
our bank to greater heights. And the day when our bank becoming a number one player in
international financial arena will not be far off. And the day when our heart swelling with pride
when we hear the name of UCOBANK and blood throbbing in our veins on seeing the emblem of
UCOBank is already arrived.

25.NATIONAL ELECTRONIC FUNDS TRANSFER

(NEFT)
(for Finacle Version 7.0.19)

OPERATIONAL GUIDELINE
Go to Internet Explorer
Login with user ID and password

Before initiating any NEFT Transaction branch has to verify for IFSC (Indian Financial
System Code) availability in the Finacle System and note down Bank Code and Branch
Code which will be required during creation of messages.

Steps to verify IFS Code.

In Menu Option type IFSCI and press enter
In IFS Code put the desired IFSC and press F4 key. It will display the complete detail
against the desired IFSC.
135
Example : IFSC : PUNB0261700
Bank Code : PUNB0
Branch Code : 261700

Steps to Create 298N06 Message- Outward Debit Message.

Go to Main Menu of Finacle.
In Menu Option type HRTGS and press enter.

Please note that all * Marked fields are Mandatory.

Function* : A-ADD
Tran. Type : T-TRANSFER
SOL ID : XXXX(System Generated)
Paysys ID : NEFT (Can be Selected from Clicking adjoining Button.)
Message Type : N06 (Can be Selected from Clicking adjoining Button.)
UTR : It will be generated after successfully creation of Message.
Tran. ID : It will be generated after successfully creation of Message
Tran. Date : It will be generated after successfully creation of Message
Paysys Tran. Ref. No : It will be generated after successfully creation of Message After selection
of Message Type Skip UTR, Tran.ID, Tran. Date, Paysys Tran. Ref. No. Next Navigation button is
ACCEPT.
Clicking on ACCEPT button will open new screen as shown below.

Message Status : System Generated.

Message Priority (1-99)* : System Generated.
Value Date* : will be populated automatically( Value date will be same as
system date)
Dr. A/c. ID* :
There may be several cases for selection of Account Number to be Debited.
Case 1: Payments for Customers Debit Customer Account Number.
Case 2: Payments to Different Vendors, Intt. On FDR etc. Debit NEFT CURRENT ACCOUNT
(NEFT CURRENT ACCOUNT to be opened by individual branch in Scheme code CA 702 with CUSTID
201336415. No other Current Account is to be opened in this Scheme Code. Balance in this Current
Account Must be Zero at the End of Day)

Case 3: Payments made with CASH Deposit Debit NEFT CASH REMITTANCE Account.
(NEFT CASH REMITTANCE Account to be opened by individual branch in
Scheme code CA 703 with CUSTID 201336470, No other Current Account is to be opened in this
Scheme Code.
Balance in this Current Account Must be Zero at the End of Day)
Case 4: INDO NEPAL REMITTANCE for Customers and Walk-in-Customers. Debit NEFT INDO NEPAL
REMIT Account.
(NEFT INDO NEPAL REMIT Account to be opened by individual branch in
Scheme code CA 704 with CUSTID 201336473, No other Current A/C is to be
opened in this Scheme Code.
Balance in this Current Account Must be Zero at the End of Day)

Cr. A/c. ID : It will be populated automatically and its value will be 18311015020019(NEFT
PAYABLE ACCOUNT of Treasury Branch, Mumbai)
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Tran. Amount* : As per requirement (User is to ensure the amount is correctly given and needs to
be cautioned that once message is verified, it can not be modified/recalled).

Charge Event ID : If Charge has to be taken then select NEFT OUTWARD CHARGES, Otherwise keep
it blank.

Charge A/c. ID :
Case 1: If Charge has to be deducted from Customer Account then put the account no of
Customer, Otherwise keep it blank.
Case 2: If Charge has to be deducted from NEFT CURRENT ACCOUNT, then put the account no of
NEFT CURRENT ACCOUNT, Otherwise keep it blank.
Case 3: If Charge has to be deducted from NEFT CASH REMITTANCE Account, then put the account
no of NEFT CASH REMITTANCE, Otherwise keep it blank.
Case 4: If Charge has to be deducted from NEFT INDO NEPAL REMIT Account, then put the account
no of NEFT INDO NEPAL REMIT, Otherwise keep it blank.
Instrmnt Type : If any, Instrument has been presented then Select Instrument Type.
Instrmnt. No. : If Instrument has been selected then Instrument number has to be put.
Instr. Date : If Instrument has been selected then Instrument date has to be put.

Tran. Particulars : as per requirement.

After filling all the above details press on NEXT Button for Navigation to Next Screen.

Sender's Correspondent Details

Bank/Branch Code : It will be populated automatically.
IFS Code : It will be populated automatically.

Receiver Institution Details

Bank/Branch Code : Type Bank Code(five characters) in the first box or can be selected by
clicking on adjoining button.
Type Branch Code(Six characters) in the second box or can be selected by
clicking on adjoining button.
IFSC Code : After putting Bank Code and Branch Code it will be populated automatically.

Note :
For Case 4 : INDO NEPAL REMITTANCE
IFSC Code will be Populated Automatcically as SBIN0004430:
Ordering Institution Details
Bank/Branch Code : will be populated automatically.
IFSC Code : will be populated automatically
Institution ID : Not Required to be filled.
/Name : Not Required to be filled
Address 1 : Not Required to be filled
Address 2 : Not Required to be filled
Address 3 : Not Required to be filled

Ordering Customer Details

Cust. Name* : System will fetch data from the database automatically against the above
mentioned Customer Account Number.
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( Users are requested to remove special characters if any like ! @ # $ % ^ & and *)
Address 1* : System will fetch data from the database automatically against the above mentioned
Customer Account Number.
( Users are requested to remove special characters if any like ! @ # $ % ^ & and *)
Address 2* : System will fetch data from the database automatically against the above mentioned
Customer Account Number.
( Users are requested to remove special characters if any like ! @ # $ % ^ & and *)
Address 3 : System will fetch data from the database automatically against the above mentioned
Customer Account Number.
( Users are requested to remove special characters if any like ! @ # $ % ^ & and *)

Account with Institution Details

Bank/Branch Code : Not Required to be filled.
IFSC Code : Not Required to be filled.
Institution ID : Not Required to be filled.
/Name : Not Required to be filled
Address 1 : Not Required to be filled
Address 2 : Not Required to be filled
Address 3 : Not Required to be filled

Beneficiary Customer Details

A/c. ID* : must be filled up as per requirement.

For Case 4 : INDO NEPAL REMITTANCE

A/c Id will be Populated Automatcically as 2399468044302
Cust. Name* : must be filled up as per requirement.
Address 1* : must be filled up as per requirement.
Address 2* : must be filled up as per requirement.
Address 3 : to be filled up as per requirement.

Payment Details :
Line 1 : as per requirement.
Line 2 : as per requirement.
Line 3 : as per requirement.
Line 4 : as per requirement.
Charge Details : Options available are OUR, BEN and SHA.
Sender to Receiver Information( if any detail has to be filled up between Line2 to Line 6 then each
row must start with // )

Case 4: INDO NEPAL REMITTANCE

Line 1* : / Beneficiary Identification Particulars/ e.g: Citizenship or PAN card or Passport
number of the beneficiary/ or X if no information is available
Line 2 :// Contact Number of Beneficiary
Line 3 :// Commission
0 in case of account credit/50.00 for remittances upto Rs. 5,000.00 and Rs. 75.00 for remittances
above Rs. 5,000.00 upto Rs. 50,000.00
Line 4 :// Account number, if receiver customer of Nepal SBI Bank Ltd.(NSBL) X if cash is to
be disbursed or Account number of Nepal State Bank if account is to be credited
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 Line 5 :// X (this field is kept for future use)
Line 6 :// X (this field is kept for future use)

Case 5: Payments made for CARD PAYMENTS.

Line 1* : /CARD/ (System will automatically populate /FAST/, User has to change
/FAST/ to /CARD/).

After filling all the details in the screen press on SUBMIT Button, then like below screen
will appear.
New Record [Paysys Tran. Ref. No. = SAA631] Added Successfully
Note: Please note down the Paysys Tran Ref No generated for further Inquiry or Verification of
the Message.

Message Creation for 298 N06 is complete. Status of the Message will be ENTERED

Important Note :
Ordering Customer Details are populated automatically by system and it may contain some special
characters like ! @ # $ % ^ & and *
If Name or Address contain any above mentioned characters then the outward messages may fail.
Users are required to remove the special characters from name and address then press submit
button for creation of messages.
Don’t use hyphen( - ) , slash( / ) : ; to differentiate two words, instead use space.
Users have to be very careful while putting transactions through NEFT as the transactions cannot
be reversed/cancelled once committed. Payments under NEFT are final and irrevocable. For
transactions to be put through NEFT, applicant must give account name, account number of
customer of other bank and valid IFSC in their application. IFSC refers to Indian Financial System
Code. This is the unique identifier given by the RBI to all banks’ branches participating in the NEFT
System.

Batch Settlement Schedules available at RBI for NEFT Payments

Days Batch Settlement Times

Monday – Friday 9:00,11:00,12:00,13:00,15:00,17:00 hours
Saturday 9:00,11:00,12:00 hours
Branches are advised to verify the messages at least before 15 (fifteen) minutes, to avoid non
acceptance of messages at RBI

Steps for Verification of 298 N06 Message.

Now Login with another Finacle User.

In Menu Option type HRTGS and press enter.

Function* : Select V-Verify option

UTR : Put 16 digit UTR no(e.g. UCBAH09141000220)
Or
Paysys Tran. Ref. No. : Put Required no. (e.g. SAA631 )

139
And Press ACCEPT Button.

Click on NEXT Button to Navigate to the data entered screen.

Please Check the Correctness of all the Particulars filled.

If all the particulars are correct then click on SUBMIT button to Verify the
Message, then screen will be shown as below. System will prompt for Confirmation
for Verifying the Message.

Record [Paysys Tran. Ref. No. = SAA631] Verified Successfully.

Different Status of Message( For Outgoing)

After Creation of Message
↓
ENTERED
After Verification of Message
↓
READY
Final Status of Message
↓
TRANSMITTED

Steps to Cancel an Outgoing Message.

Note: The outgoing messages which has not been verified can be cancelled. Incoming messages
cannot be cancelled.
For cancellation of NEFT payment message Invoke Menu : HRTGS, Select ‘X’ in function, click on
accept , click on next and then click on submit button.
On successful cancellation, the screen will display the message is successfully cancelled.
Thereafter, the user cannot inquire/view the details of the message
cancelled in the system, even by giving paysys tran ref no/UTR. The cancelled paysystran reference
number/UTR should be noted and kept on record.

Steps for Inquiry of Message.

For Inquiry, select function I and give the Paysys Tran Ref No in the specified column and click
accept.
Inquiry function is used to know the
a) NEFT Message Status.
b) Details of account debited.
c) Details of contents of inward or outward message. Inquiry can be done by giving UTR No.
of the message also. There is no need to fill in other fields. Paysys Tran Ref No or UTR will do.
Other fields information are optional.

--- The message is displayed and the status is E Entered for Created Message.
--- After creation of the message, the user can see the Unique Transaction
Reference(UTR) number on the top right hand corner. This UTR is to be noted in NEFT application
form/voucher. With this UTR inquiry can be made for knowing the status of the message.

The amounts of all incoming NEFT messages for IFSC of receiving branch would be
140
credited to the beneficiary account of the receiving branch by the system if the account number
and name matches. For viewing incoming NEFT messages the branch has to generate a report
using menu ‘NEFTREP’.
Incoming NEFT messages where IFSC of the branch and account number of
Branch(SB,CA,CC,OD) is matching the status would be ‘P’ and for all other messages status would
be ‘U’.

Incoming NEFT Messages where the account number of beneficiary matches with that of customer
account number in Finacle of the branch but name does not match with account number in
Finacle, it should be returned by creating new 298N06 message within time limit of next batch.

Inward NEFT messages where beneficiary account number is not matching with Customer’s
account number of the branch are to be viewed using ‘NIRP’ menu option, the branch has to take
a decision to Accept or Return each message. When the message is accepted using ‘A’ option in
menu ‘NIRP’ the system would credit correct account of the customer typed in NIRP screen,
debiting ‘NEFT Payable A/C’ of the branch. In case of rejection of message option ‘R’ is to be used
in ‘NIRP’ menu and system would debit ‘NEFT Payable A/C’ of the branch and credit ‘NEFT Payable
A/C’ of Treasury branch.

Steps to Accept or Reject Messages using NIRP Menu Option

All incoming NEFT Messages (298 N02) where account type is other than
SB,CA,CC,OD and receiver IFSC is correct will be credited to ‘NEFT Payable Account
of the branch with Status ‘U’.
Now branch has to take a decision to Accept or Return each message.

Steps to Accept Message

Now Login with another Finacle User.
In Menu Option type NIRP and press enter.
SOL ID : Branch Id will be Populated Automatically
Paysys ID :
Settlement Date :
Amount Form :
Amount To :
A/C Id :
Beneficiary Name :
All the above Parameters can be put individually or Press ‘F4’ Key to view all the Messages which is
under status ‘U’
The Selected record will appear with Asterik Mark (*) . And message details will have the
Particulars like
A/C Id
Amount
UTR
Tran Ref No
Rej Code
Reason
Account Name

141
Status
Now put ‘A’ against the Selected account number and press ‘F4’ Key then ‘F10’ Key to save the
Transaction
Now verify the Accepted Account Number with ‘ACLI’ Menu Option. The Selected
account will be credited.
At the same time status of Message will be changed to ‘A’ Accepted

Steps to Reject Message

Now Login with another Finacle User.
In Menu Option type NIRP and press enter.

SOL ID : Branch Id will be Populated Automatically

Paysys ID :
Settlement Date :
Amount Form :
Amount To :
A/C Id :
Beneficiary Name :
All the above Parameters can be put individually or Press ‘F4’ Key to view all the
Messages which is under status ‘U’
The Selected record will appear with Asterik Mark (*) .
And message details will have the Particulars like
A/C Id
Amount
UTR
Tran Ref No
Rej Code
Reason
Account Name
Status
Now put ‘R’ against the Selected account number and press ‘F4’ Key then press Tab Key or come
down with arrow key to move to Reason Code box and press ‘F2’ key to select the listed Reason
Codes.
Select the Applicable Reason Code with pressing SHIFT and ‘F4’ key together.

Now press ‘F4’ and ‘F10’ key to save the Transaction.

Now for verification of Rejected Message go to ACLI’ Menu Option and see whether the NEFT
Payable account is Debited and NEFT Payable account of Treasury is Credited.
At the same time status of Message will be changed to ‘X’ TRANSMITTED ON REJECTION

Reports Available in NEFT

In Menu Option type NEFTREP and press enter.
Report Parameters available are
SET ID/SOLID : Sol ID of the Branch or Zone Name
From Date : Desired date and press F4 Key
To Date : Desired date and press F4 Key
MSG Status : Options Available

142
U-Unprocessed, P-Processed., A-Accepted, X-Cancelled, Z-All.
and press F4 Key
I/O : Options Available
I – Inward, O- Outward.
and press F4 Key
Msg Id : Options Available
N06, N02, N04, N07
and press F4 Key
Now Report Generation is over, Take the Printout for Keeping Record of the Message

Steps to find out Paysys Tran Ref No of a RTGS/NEFT Created

Message which is not yet Verified and Status is ‘E’ Entered.
Go to Internet Explorer
Login with any user. In Menu Option type PTW and press enter, Put 18 and press Function Key F4.
Then put Sol Id and Press Function Key F4. Then it will ask for generation of Report for Print or
Type or Send to PC. Print or type or send to PC (P/T/S) ? Select Required Option and Press Function
Key F4
List of All Unverified Paysys Tran. Ref. No will appear.

NON FINANCIAL TRANSACTIONS PENDING DURING CSOLOP

Find out Paysys Tran Ref No by using PTW Menu Option and Cancel the desired Paysys
Tran Ref No as per procedure for Cancellation of an Outgoing message

24.THIRD PARTY PRODUCTS -INSURANCE

BANCASSURANCE

143
 BANCASSURANCE: THE NEW MANTRA.

Bancassurance : a French term.

Born before 15 years with introduction of “Sorasaving”,
a simple interest bearing annuity policy of Life Ins.
Co. “Groupama”(later on known as “Predica”) of France
and distributed through 11000 Branches of French Bank, Credit Agricole.
This distribution represented 80% of Sale of Life Ins.
and Predica became 2nd biggest Life Ins. Co. in France
In just two years.
Bancassurance has rewritten rule of delivery of financial service in Europe.
France, the birth place of Bancassurance, has shown Growth in financial
services market by 20% during last six years through Bancassurance and
Banking Community in Europe derives 20% to 30% of Bank’s Corporate
Profit from it.
“National” pioneer in introducing Bancassurance in India, created a new
history in distribution of financial services to the customers of Bank and
“National” through Bancassurance Tie ups with many banks.
“NIC” and “UCO” hope to replicate the French success in India.
WHAT IS  “IT IS BUILDING SYNERGIES BETWEEN THE INSURANCE AND BANK
BANCASSURANCE NETWORK TO MARKET INSURANCE PRODUCTS THROUGH THE
BANKING CHANNELS.
 OR IT IS THE SELLING OF INSURANCE PRODUCTS THROUGH A BANK’S
DISTRIBUTION CHANNELS.
BANCASSURANCE To Combine and Utilize Bank’s and Insurance Company’s Synergies for
VISION. attaining Mutual Financial Benefits, Enhancing Customer Satisfaction and
Serving Social Objectives of the Nations.
GOAL AND METHOD. GOAL: To provide total financial solutions to customers through single
window under one roof.
METHOD:To distribute and market general insurance products through bank
Income Generation for Corporate Agency can yield handsome commission income from sales of
Banks through various insurance products through banking outlets.
Bancassurance.
PROTECTION  Bank advances and loans are repayable. Assets or projects created
UMBRELLA FOR BANK. through bank advances and loans are subject to various risks like fire
etc. Without insurance protection such assets add to vulnerability of
the projects or activity.
 Insured projects mitigate the propensity of growing NPA.
 Loans secured and unsecured offered to individuals or corporate
concerns may be secured by covering insurable perils/risks affecting
both individuals and their properties.

CO-BRANDED  DEPOSIT/ACCOUNT LINKED PA ETC.

BUSINESS OR MASS  Excellent source for cross selling of products.
SELLING.  Tailor made Insurance for Customers
 Reduced pricing due to Volume Discounts.
144
  Simplified & centralized claims processing.
 High Volume business source for Bancassurance.
 An incentive to Bank’s customers for opening new accounts.
DIRECT COUNTER  Direct sales on counter by Bank.
SALES.  Value added service to existing clients.
 Attracting new walk-in customers
 Single window services for Banking and Insurance needs.
 High potential for Fee based income, if nurtured actively.
BENEFITS OF BANK BANK’S CUSTOMER
BANCASSURANCE. Value Addition Single window clearance
Create addl. source Saves time and adds commission.
revenue by convenience
Brings new customer. Comfort to customer
Improved resource Can obtain a basket of utilization.
products under one roof.
Ease of renewals Bank and customer.
Addl. Cash flow for Bank & Insurance Co.

इंश्योरें स टर्मिनॉलॉजी (नॉन लाइफ)

INSURANCE TERMINOLOGY ( NON LIFE )

1 PERIL Assets are insured, because they are likely to be destroyed or

made non functional through an accidental occurrence such
possible occurrences are called peril
2 Insurable interest The owner of the property has a right under law to effect
insurance on the property if he is likely to suffer financially
when the property is lost or damaged.
This legal right to insure is called insurable interest.
3 Indemnity It is an insurance contract between the insurer and insured to
place the later ( insured) in the same financial position after a
loss as for as possible as he occupied immediately before the
loss .
4 Subrogation Subrogation may be defined as the transfer of rights and
remedies of the insured to the insurer who has indemnified the
insured in respect of the loss.
If the insured has any rights of action to recover the loss from
any third party, who is primarily responsible for the loss, the
insurer, having paid the loss is entitled to avail himself of these
rights to recover the loss from the third party.

5 Contribution Contribution may be defined as the right of insures who have

paid a loss under a policy to recover a proportionate amount
from other insurers who are liable for same loss.
The principle of contribution arises when an insured have
several insurance on the same asset/subject matter
145
6 Proximate Cause When the loss occurs as a result of two or more causes, acting
simultaneously or one after another then it becomes necessary
to choose the most important, the most effective, the most
powerful cause which has brought about the loss of the insured
property/asset.
This cause is termed as ‘proximate cause’ ,all other causes being
considered as ‘remote’ .‘
7 Cover Note A cover note is a document issued in advance of the policy. It
would incorporate the following:
a) Name & address of the insured,
b) Sum Insured,
c) Period of insurance,
d) Risk covered,
e) Rate of premium,
f) Description of risk covered,
g) Serial number of cover note,
h) Date of issue
8 Permanent Total When disablement is of permanent and irrecoverable nature
Disablement and is absolutely total, such as paralysis, loss of sight of both
eyes or the physical separation of the two entire hands or two
entire feet or one entire hand and one entire foot or loss of
sight in one eye and loss of entire hand/foot, then such
disablement are deemed as equivalent to permanent total
disablement.
9 Permanent Partial This is a similar to permanent total disablement with the
Disablement difference that the disablement is not total but is only partial.
An example is the loss of toe or a finger.
10 Temporary Total This is a disablement which is total but for temporary period
Disablement only. This temporary period may be days, weeks or months.

इंश्योरें स टर्मिनॉलॉजी (लाइफ)

INSURANCE TERMINOLOGY (LIFE)

1 Bancassurance Business of distribution of insurance products of an insurance

company through bank acting as corporate agent of the
company.
2 Composite Corporate When a bank obtain licence from the licensing authority i.e.
Agent IRDA for both life and non-life insurance product of two
insurance companies is called “Composite Corporate Agent”.

3 Annuities A form of pension in which an insurance company makes a

series of periodical payments to a person (annuitant) or his/her
dependents over a number of years(term) in return for the
money paid to the insurance company either in a lump sum or
in instalments.
146
4 Endowment Endowment assurance pays out either on the death of the
Assurance assured whenever it occurs or a fixed number of years.
5 Group Life InsuranceIt is a life insurance policy that covers a number of people
usually a group of employees or the number of a particular
association.
6 Life Insurance Is a branch of insurance in which compensation is made
available to designated survivors of a deceased person or to a
person on their own survival after a fixed term of years, in
return for payments or premiums.
Life Insurance protects against loss of income of individual.
Insurance reduces impact of risk on the owner and those who
depend on the asset.
7 Sum Assured/Insured In case of Life Insurance the term Sum Assured is used,
whereas the Sum Insured is used in case of non-life(general )
Insurance.

8 Term Insurance Term assurance plans offer pure risk cover without the element
of saving .
It is inexpensive.
The sum assurance is payable only if the insured dies during the
selected period. In case the insured does not die during tenure
of insurance ,nothing is payable.
Term Insurance pays a death benefit to the legal heirs if the
person insured dies during the term of the policy.
9 Under Writing The underwriter analyse the risk arising from the insurance
applications and insure that the insurer issues the maximum
possible policies while keeping the risk of loss within expectable
limits.
An underwriter evaluates the application of a person and
determines whether he/she is a good risk for the insurer.
The insurer use underwriters decision to accept or deny the
proposals.
10 Unit Link Policies A unit linked policy is a life insurance policy in which the
benefits depend on a performance of a portfolio of units
/shares.
Each premium paid by the insured person is split, a part is used
to provide life insurance cover which the balance is issued to
buy units in a trust.
As they are linked to the value of shares/unit, unit linked
policies can go up or down in value.
Policy holders can surrender the policy at any time and the
surrender value is the selling price of the units purchased upto
the date of cancellation (less expenses).
Legal heirs are entitled to the amount of insurance cover and
entitled units in case of death of the insured
11 With Profit Policies Entitles the assured to a share in the insurer’s profit, which is
147
 (with bonus ) added to the sum assured when it is paid out.
12 Without Profit The policies in which only the sum assured is paid out “without
Policies profit policies” are not entitled to bonus.
13 Whole Life Insurance Whole life insurance guarantees a death benefit cover
throughout the course of life provide the required premium are
paid .
14 Actuary Is a financial expert who applies mathematical and statistical
methods for assessment of financial and other risks relating to
various contingent events and for scientific valuation of financial
products, in the fields of insurance, retirement and other
various benefits, investment and other related areas.
15 PPT Premium paying term
16 GSV Guaranteed Surrender value

बीमा ग्राम
BIMA GRAM
A village is recognised as ‘BIMA GRAM’ if it fulfills the following stipulations:
1 Objective The concept of BIMA GRAM has been brought into focus with the
twin objective of fulfilling the social obligation of providing
security cover to the villagers through life insurance policies and
also to explore the huge market for life insurance business in the
rural areas which is hitherto untapped .
2 Norms The village should be a RURAL Centre as per the definition of
IRDA for Rural Centre norms.
3 Population Population should be at least 1000 but not exceeding 5000 .
4 Policies At least 100 new life insurance policies should come from the
village during the Financial Year in which the village is to be
declared as “BIMA GRAM”.
At least 75% of the household in the village should have at least
one policy of LICI . This policy can be on the life of any of the
earning member of the household.
5 Lapse of policies Lapsation of policies issued prior to the current FY should not be
more than 20% at that time when the village is to be declared as
“BIMA GRAM”.
6 Incentive from LICI In recognition of the village getting a “BIMA GRAM” status ,LICI
also undertake a socially purposeful project in the village , as an
incentive at a cost upto a maximum of Rs. 25000/-
7 Head Office Circular CHO/SUA/43/2005-06,Dated 21.09.2005

बीमा स्कूल
BIMA SCHOOL

148
 1 CONCEPT LIC has introduced a new concept

“ BIMA SCHOOL” to popularize and market Children plans

2 Norms A school may be designated as a “BIMA SCHOOL” if minimum 25
number of policies are to the sold to the student in one FY in a
particular school.
3 Objective Providing security cover to the children through Life Insurance
policies and also to explore the huge market for Life insurance
business for the children studying in school .
4 Incentive After declaration of “Bima School” LICI will give a suitable
memento on the level of scale of policies on the lives of students
studying in the school.
Minimum No. of policies Amount of Memento
25 Rs.2500/-
50 Rs.5000/-
100 Rs.10000/-
The Memento will be given for one or more of the following
purposes :
1) knowledge center : upgradation of school library-with supply
of books & CDs
2) Sports Center : Upgradation of sports facilities.
3) Utility articles of use to school as per their choice.
5 Children Plans 1) Komal Jeevan—Table No.-159
2) Jeevan Kishore-Table No.102
3) Jeevan Chhaya-Table No. 103
4) Jeevan Anurag-Table No. 168
5) Marriage Endowment & Education Annuity-Table-90
6) Children’s Deferred Endowment Assurance-Table-41 & 50
Head Office Circular; CHO/SUA/62/2005-06, Dated 22.12.2005

JANSHREE BIMA YOJNA

1 In association with LIC of India to provide Life Insurance Protection

Preamble to rural and urban poor person living below and marginally above
the poverty line.
 Exclusively for women who are members of credit linked
women SHGs of our Bank
 Bringing them into the fold of financial inclusion
 Financially empowering the rural poor, especially the women
folks
 A Group Insurance Scheme
 UCO bank shall be the Master Policy Holder
 Apart from life risk two children of beneficiary, studying
between IX and XII class would be eligible for Scholarship as an

149
 add on benefit of the Shiksha Sahyog Yojna under this scheme
2 Eligibility All members of credit linked women SHGs who are :
a) between 18 yrs and 59 yrs. of age
b) living below or marginally above the poverty line.
Age proof is required
3 Admission of  For the purpose of admission application in duplicate is
Members required as per Annex-I
 Return one dully acknowledged copy to applicant
 If particulars are satisfactory bank shall admit her in to the
scheme
 Record all necessary particulars and prepare in duplicate-
Annex-II
4 Commencement &  The members will be enrolled in the either of the two blocks
Renewal per year

Block-I- Enrolled upto Policy period

31.10.2008 15.11.08 to 14.11.09
Block-II 31.01.2009 15.02.09 to 14.02.09
Ensure enrolement into Block-I & Collect premium upto 31.10.2008
Each year every member shall be scrutinized for eligibility and the
membership shall be renewed for the same block after year
5 Appointment of Every insured member shall appoint a Nominee. In the event of
Nominee death, benefit under the Assurance will be paid to Nominee
6 Collection &  Annual Premium -@ Rs.200/- per member
Remittance of  Out of annual premium the parent SHG would contribute
Premium 50% i.e.Rs.100/-which it may recover from the individual
member on entry date.
 Balance of 50% of premium per member shall be adjusted
out of the Social Security Fund set up by Govt. of India
 Premium would work out to be less than Rs.0.28 per day
 Premium – from Branch to Zo---HO—LICI, Kolkata
 Manual branches –through DD & CBS Branches through
INTERSOL,
 Insurance cover of Rs.30000/- for one year
 Branch shall submit Annex-II to ZO
7 Benefits on Death Upon non-accidental death of an Insured Member whilst she is
prior to terminal insured including natural death the sum assured of Rs.30000/- shall
date become payable to the nominee of the Insured Member.
8 Benefits a) Natural death Rs.30000/-
b) Accidental Benefit:
i) on death due to accident Rs.75000/-
ii) Permanent Total Disability Rs.75000/-
iii) Loss of 2 eyes or 2 limbs Or Rs.75000/-
One eye & one limb in an
accident
iv) loss of one eye or one Rs.37500/-
limb in an accident
150
9 Servicing of the  Bank shall act as Nodal Agency & shall furnish to LICI all
Scheme relevant particulars required by them of the insured member
 Single Master Policy
 Two schemes with two different dates of commencement
 HO shall collect data of all members and shall hand over to
P&GS Unit of LICI with Premium Rs.100/- per member.
 A unique No. of 20 digit should be given to each member like
4 digits- Branch Code (Not for CBS Br.)
10 digits- SHG Loan A/c No.
6 letters- SHG member first name
LICI will distribute data to all P&GS Units
10 Settlement of Claim  Upon a claims arising out of disability due to accident or
death the sum assured is to be claimed by the beneficiary or
her nominee from LICI through Our Branch within SIX months
vide Annex-III. List of documents
In case of death Physical disability
1. Claim form 1.Claim form-Annex-III
2. Copy of death certificate 2.Proof of Physical Disability
3. copy of FIR 3.Copy of FIR
4. Copy of Post Mortem report 4. Branch confirmation of
5. Branch confirmation of membership & premium
membership 7 premium 5. any other document
6. any other document

All the documents should be duly attested by BM

11 Claim  on receipt of claim branch will forward to P&GS unit of LICI
attached to branch
 then process of claim by & a/c Payee cheque in favour of
Nominee
12  Ensure 100% coverage of the existing women SHG’s credit
linked with our Bank.
 Ensure that all existing members of the women SHG’s are
covered by 31st October 2008 without fail.
13 Detailed Guidelines  CHO/Retail Banking/14/2008-09, Dated 09.09.2008
 Annex-I-Application Form
 Annex-II-Performa of register
 Annex-III-Claim Form
 Annex-IV-Mapping Chart of P& GS unit
 Annex-A I-application for Scholarship under SSY
 Annex-A II –List of students eligible for scholarship
 Annex-A III- Certificate of utilisation of scholarship

SHIKSHA SAHYOG YOJANA

151
1 SCHEME  Two children of each woman member joining the
Janshree Bima Yojana will be eligible for the benefits of
SHIKSHA SAHYOG YOJANA

2 Eligibility  Students studying in IXth to XIIth Std (including ITI

courses ) whose mother is covered under JBY
 If a student fails and is detained in the same std. he
will not be eligible for scholarship for next year in the same
std.
3 Benefits  Scholarship of Rs.600/- per half year per child
( payable on 1st January and 1St July every Year) will be paid for
a maximum period of four years.
4 Premium  No additional premium is charged for the scholarship
5 Administration  Scheme will be administered through P&GS Deptt. Of
LICI
6  Branch shall identify the eligible students
 Fill application Form and submit to branch-Annex-A-I
How to Claim  Submit every year for claiming scholarship certifying
scholarship that the child is promoted to the higher class.
 A list of beneficiary has to be submitted to concerned
P&GS unit with details-Annex-A II
 Scholarship will be disbursed to the student through
branch on 1/2 yly. Basis -1st July & 1st January every year.
After disbursement a certificate of utilization Annex-A-III
should be submitted by Branch to P&GS
7 Termination of  If
Assurance 1.Discontinuance of payment of insurance premium or
2.insured member reaching the terminal age of 60 or
3.Ceasing to satisfy any of eligibility or
4. Ceasing to be a member of SHG or
5. status of parent SHG loan account slips to NPA
8 Master policy LICI will issue a single Master policy to UCO Bank
Policy can not be assigned, charged or alienated in any way.
9 Discontinuance/ Both Bank & LICI reserves the right to discontinue/ modify at
Modification any time on any annual renewal date offering 3 months notice
10 Detailed guidelines Cho/retail banking/14/2008-09 dated 09.09.08

बीमा बैंक
BIMA BANK SCHEME

1 Scheme LICI has introduced the concept of Bima Bank during FY 2006-07
2 Features The New Business Performance criteria for a bank branch to be
declared as a Bima Bank in the year 2009-10 shall be
200 policies or Total First Premium of Rs.30 lacs
Creation of “BIMA BANK”: In order to be identified as a “Bima Bank”,
152
 a branch has to mobilize minimum “200 Policies or a total premium
of Rs. 30 Lacs”.
Please refer
to HO letter No. HO / Retail-IM/ 2008-09/225 dated 21st May 2008
on the subject.

3 Reward Pe Date of completion of Fixed cash award

rio new business Bank branch Bank branch
d performance criteria having upto 20 having 21
staff members staff
members &
above
A Competition period Cash award-11500 total in july-
B In july,2010 Rs.11500
C or August Rs.10000
or September,2010 Rs.9500
Fixed cash award will be utilized to honour all the staff members of
the Branch with a momento present a Bima Bank Citation and also to
conduct the honouring function.New Business performance criteria for
the first time on or after 01.01.2009 shall not be eligible to be declared
as a Bima Bank.
4 Repeat Bima Bank The amount of award shall be increased by Rs.1000 every time a
branch repeats the Bima Bank criteria after being declared as a Bima
Bank for the first time
5 Apart from recognition LICI will facilitate the star performers under
Fortune 500 Group Scheme
6 Fortune 500 Group Heads of bank branches completing more than :
Scheme A Bima Bank should there after continue to work towards becoming
a “Fortune 500 Branch” by mobilising “500 policies or a total
premium of Rs.50.00 Lacs” and
ultimately as a “Centre of Excellence” mobilising “1000 policies or a
total premium of Rs.1.00 Crs”
7 Centres Of Heads of Branches completing more than 1000 policies or Rs.100 lacs
Excellence Total Premium Income during the year 2008-09 shall be honoured at
a special Convention at ZO level with a Momento worth Rs.10000/-
8 Bima Zone LICI has introduced a new concept “BIMA ZONE” for the Zones . The
Zonal Heads whose zone declares a certain numbers of Bima Bank as
stipulated in the table shall be rewarded:

यक
ू ो गह
ृ लक्ष्मी योजना
UCO GRIHA LAKSHMI YOJANA
LIFE INSURANCE COVER TO HOUSING LOAN BORROWERS IN TIE-UP WITH LIFE
INSURANCE CORPORATION OF INDIA.
1 Date of Effect
2 Eligibility 1. Any existing and Prospective Housing Loan Borrowers.
[LIC of India has agreed to extend the scheme to existing borrowers
153
 up to 31.3.2007)
2. For joint loan accounts, insurance coverage will be extended to only
one account holder. NOC from other account holder(s)
18 to 59 years. ( A borrower of 59 years, 5 months and 29 days is
3 Age
considered to be within 59 years of age)
Minimum -3 years and maximum age at maturity 65 years.
(However, his/her insurance cover under the scheme will be in force up to
4 Tenure of cover
the age of 65 years/ liquidation of loan/ occurrence of death whichever is
earlier)
One time Premium will be calculated on the basis of:
 Loan amount.
5 Premium
 Age of the borrower.
 Tenure of loan.
A In case of new Housing Loan a/c:
(i) Debit to the SB/Current Deposit of Borrower; or
(ii) Debit to the Housing Loan a/c of borrower. This may be treated as part
of project cost. EMI to be calculated on the whole amount of project cost.
B. Existing Housing loan A/C.
(i) Debit to the SB/CD of the borrower; or
Payment of
6 (ii) Debit to the existing housing loan a/c on the basis of authorization
Premium
from borrower. EMI to be re-fixed for the remaining tenure. Loan for
premium to be sanctioned by the same authority who has sanctioned/ will
sanction the shelter loan.
Term loan agreement to be obtained. Creation/ extension of mortgage to
cover the amount should be made.
Premium to be paid by DD/ Po favg. LICI P&G Unit through RO.
 Minimum Rs 50,000/-
 Maximum Rs 100,00,000/-
Insurance coverage from the date of issuing the acceptance certificate
7 Amount of cover by the branch to the borrower.
No survival benefit is available.
No claim settlement, if natural death of insured borrower within 45 days
period of the policy.
No medical examination required for borrowers below the age of 45 years
for a loan limit to the extent of Rs 10 lacs.
Other than above, medical examination by a panel doctor of LICI with a
Medical letter of introduction by the Manager of the branch.
8
Examination Only after completion of the medical examination formalities and
subsequent approval by LICI(P&G Unit), proposal shall be accepted and the
premium amount is to be collected from the borrower. The charges of the
medical examination will be borne by the borrower.
Each loan to be treated as distinct one and premiums are to be collected
separately. However, aggregate amount of loan for insurance coverage
In case of taken together should not exceed Rs 100 lacs.
9
Multiple Loans For the purpose of medical examination also, total loan amount is to be
taken into account and medical examination is to be done as per the age
and aggregate amount of loan.
154
 Income-tax Premiums paid under the policy is eligible for I-Tax benefit u/s 80C of I.Tax
10
benefit Act.
Commission to LICI will reimburse 5% of the amount of premium as administrative
11
the Bank expenses to the bank.
Premature An appropriate amount of premium for the unexpired period shall be
12
payment of loan refunded to the borrower by the LICI.
A unique number should be issued to each borrower customer opting to
join the scheme. It consists three segments as under:
Membership
13  Master Policy Number issued to the bank by the LICI.
Number
 RBI code number of the collecting Branch (7digit)
 Running Serial Number.
Claim All claims to be routed through the collecting branch and to be sent to LICI
14
Settlement through RO.

Head Office Circular Reference:

1. CHO/ADV/18/2005 Dt. 24.09.2005 Revised Master circular on UCO Shelter
2. CHO/RETAIL/5/2006 Dt. 18.09.2006 Modifications in UCO Shelter
3. Revised guidelines of UCO Shelter loan to members of staff/officers.
4. CHO/ADV/27/2005 Dt. 9.1.2006 original circular for UCO Griha Lakshmi Yojana
5. CHO/Retail/18/2006 Dt. 31.3.2007 premium - UCO Griha Lakshmi Yojana Scheme

न्यू जन रक्षा पॉलिसी

NEW JANARAKSHA
TABLE-91
1 A novel plan for both the Rural Folk as well as the Urban Middle Class
Attractions Accident Benefit available without payment of any extra premium
Unique feature of extended risk cover.
Risk cover up to 3 years, after the Premiums are paid for 2 years.
2 Suitable for Farmers ,
Beneficiaries Small Business Owners,
Milk and Vegetable vendors,
Self Employed, etc.
Ideal for those persons
who cannot produce age proof,
(Provided age is less than of equal to
40 years and sum proposed is Rs 50,000/-
3 Yly., Half Yearly, Qly., Monthly, SSS
Mode of Payment
4 Mode Rebate Yearly: 3%
Half Yearly: 1.5%
5 Loan Facility General Loan facility available after 3 years of commencement of policy
when premiums are fully paid-up for 3 years, Housing loan facility is
available.
6 Who can avail Those aged between 18 and 50 years.
For how many Maximum Maturity Age is 70 years.
155
 years is premium Any policy term from 12 to 30 years can be chosen.
payable
7 Insurance Minimum Rs. 30,000/-.
available Maximum : Rs. 10,00,000/-
frequency of Premiums can be paid by yearly, half-yearly,
premium Quarterly, Monthly or
through Salary Saving Scheme.
8 Sample Premium Age Term Sum Assured Sum assured
Chart (Rs.1.00 lac) (Rs.2.00 lac)
Annual Premium 20 12 8611 17021
25 12 8620 17041
Rs. 30 20 5080 9960
35 20 5230 10260
40 30 4013 7826

9 Extended Life Cover A plan which allows continuation of benefits under the policy over an
extended period of three years, if two full years’ premiums are paid and
next three years’ premiums not paid.
Policy can be revived during or the end of such extended cover period.
No medical examination is required for upto rs.10.00 lac of SA upto the
age of 45 years and
Upto Rs.4.00 lac of SA for 46 to 50 years of age

10 A policy holder can pay 3/2/1 years’ unpaid premiums, without any
health requirement, provided, such remittances are made within 36
months from the date of first unpaid premium (FUP).
If all the unpaid premiums are paid within 36 months from FUP ,then
this benefit can be availed again during the term of the policy.
Incase, if only 1 year’s or 2 year’s unpaid premiums are paid within 36
months from FUP , then this benefit is extended by the same no. of
years.
11 Survival Benefit When the policyholder survives till date of maturity and policy is in
force,
Full sum assured + Accrued bonuses is payable. payment period,
Risk Cover :
On death during premium Natural death:
Full sum assured +
Accrued bonuses
Accidental :
Two times sum lapsed period of the policy upto 3 assured + Accrued
Bonus
Risk is covered even during the years, after the premiums are paid for 2
years.
12 Commission 25% of Premium amount + 10% bonus commission for 15 years and
above term policy.
Age SA-Rs.30000 SA-Rs.50000
15 Yrs 20 Yrs 25 Yrs 15 Yrs 20 Yrs. 25 Yrs
156
25 2095 1531 1218 3442 2501 1980
30 2113 1554 1248 3471 2540 2031
35 2149 1599 1304 3532 2615 2123
40 2212 1676 1397 3636 2744 2278
45 2315 1800 1544 3808 2950 2523

यकू ो परर्सॉनल केयर पॉलिसी

UCO PERSONAL CARE BIMA POLICY

1 Scheme Group Personal Accident Insurance Scheme

The Scheme is open to all types of individual account holders, viz.

Savings Bank Account, Current Account, Fixed Deposit Account,
Recurring Deposit Account, Cash Credit Account and all types of Loan
Accounts in individual.
In association with Royal Sundaram alliance Insurance
Company Ltd.
Royal Sundaram Alliance Insurance C ompany Ltd. has issued a Master
Policy No. BP00000124000100 in favour of UCO BANK and on that
basis all branch officials of our Bank are authorised to issue the
individual policy certificates to the insured customers
Savings / Current/ loan Account holder other than said schemes
can also avail the benefit of scheme by paying premium directly
from their Savings and Current account .
Scheme will be implemented at all the branches
W.e.f 01.09.2009

2 coverage on
payment of SA Premium to be recovered
premium
1 1.00 lac 18.00

157
 2 2.00 lac 36.00

3 3.00 lac 54.00

4 4.00 lac 72.00

5 5.00 lac 90.00

5 Scope of cover Death, permanent total disablement of insured person arising solely
from accident caused by external ,visible and violent means Subject to
terms & conditions.
6 benefit Scale of benefit % of Sum Insured
7 Death 100% of SI
Loss of sight on both eyes 125% of SI
Loss of both hands 125% of SI
Loss of both feet 125% of SI
Loss of one hand & one foot 125% of SI
Loss of one eye & one foot 125% of SI
Loss of one eye or one foot or one hand 50% of SI
Total permanent disablement other than 100% of SI
above
8 Other benefit I) all types of individual account holders like savings. Current
account, Fixed Deposit ,RD, CC and all types of Loan accounts in
individual names only

9 Age 5 Completed years to 70 years.

10 Minimum & Minimum SI :Rs. 1.00 lac
Maximum SI Maximum SI :Rs. 5.00 lac multiple of Rs.1.00 lac
Overall limit of personal accident Insurance coverage per customer
for all the account in all the branches should not exceed Rs.5.00 lac

158
11 Premium Amount Rs.18.00 per Rupees One lac less 1.50 Administrative charges of
SI
Premium shall be debited to the
SB,CA or CC of the customer
Credit -Administrative charges to
“Miscellaneous Income- Other Receipts” Code No. 4928 in BS-2.
No premium in Cash
Credit premium amount to -
“ Uco Personal Care Bima Premium collection Account”
On or before 5th of succeeding month remit Premium amount-
less-administrative Charges to ZO through DD/PO fvg.
“Uco Personal Care Bima Premium collection Account”
On or by the 5th of the succeeding month , the entire premium
amount credited to the “Uco Personal Care Premium Collection
Account” pertaining to the preceding month should be remitted by a
Demand Draft / Pay Order favouring “Uco Personal Bima Premium
Collection Account” made payable on a branch at the centre, where
the Zonal Office is located.
The amount of premium collected from the branches should be
transferred once in a month only through “NEFT” into Current
Account No.0101182002 a t Citibank
NA Chennai branch Club House Road Anna Salai Chennai -600 002
IFSC Code No. CITI0000003 MICR: 000037000 positively by the 15th of
the succeeding month
12 Master policy No. Master Policy No of the scheme is :
APG- BP00000124000100
On that basis all branch officials are authorized to issue the individual
policy certificates to the insured customers.
Co will not issue any policy bond to individual customer
13 Joint Account Cover will be available to only one person as per the
declaration/application submitted at the time of joining the scheme.
In case of joint accounts separate proposal form & separate
premium
14 Validity of Option exercised by the customers of the bank to join the scheme will
Insurance Cover remain valid for a period of 12 months under the scheme. In case of
closure of account, before expiry of the insurance cover period, the
benefit of PA coverage will cease from the date of closure of the
account and no refund shall be payable
15 Annexure Annex-I- Application Cum Certificate, issue original to the customers
Annex-II- Reporting Format
Annex-III Claim Form

159
 16 claim Written claim intimation should reach within 30 days of date of
accident failing which claim can be made null & void
Claim intimation should follow:
Uco bank account no., control no. and name of branch
Date of loss/accident and place of accident
Name & contact address
Claim will be settled directly in favour of UCO bank under the policy
Royal Sundaram Alliance Insurance Company Ltd.,
'DESHABANDHU PLAZA' - III FLOOR
No: 45 & 46, whites Road
Royapettah, Chennai 600 014
Phone: 044 - 28517387
 Customer Service – 94444 48899
 Email: [email protected]

CHO / Retail /14/2009-10 Dated: 24th August 2009

Reliance Healthy Family Policy. Scheme in tie-up with Reliance General

Insurance Company Ltd. (RGICL).
Policy & launching .Reliance Healthy Family Policy. 8th February, 2010
purpose To provide medical insurance cover to the eligible proposers
for reimbursement of medical expenses on hospitalization
for illness/disease/injury with cashless facility in network
hospitals and also Accident Cover (Death and Permanent
Total Disability benefit).
There are two Plans available under this Scheme.
i) PLAN - A : Plan - A can be opted to cover a family of four persons,
namely, the Primary member (i.e. the Proposer), Spouse, and two
dependent children upto the age of 25 years and 28 years in case of
dependent daughter. The cover will be for Hospitalization with cashless
facility in network hospitals with Personal Accident Cover ( Death and
Permanent Total Disability benefit).
Plan - B is applicable only for parents of the proposer and
will be available only to those who have opted for
coverage under Plan A.
For a single individual who wants to cover a single parent
also the same rule applies. The cover will be for
Hospitalization with cashless facility in network hospitals with
Personal Accident Cover ( Death and Permanent Total
Disability benefit).
This plan is available only if proposer has opted for Plan A
also.
other details The policy covers reimbursement of Hospitalization expenses for
A. Coverage : illness/ diseases contracted or injury sustained by the insured person.
In case of any Claim becoming admissible under the policy, the
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 insurance company through TPA (Third Party administrator) will pay to
the Hospital / Nursing Home or insured person, subject to maximum of
sum insured amount for the policy
In addition 1. 5% no claim discount at the time of subsequent renewal
2. Renewal up to 75 years
3. Pre existing disease would be covered after two years of
continuous renewals, provided it is declared in the proposal
while taking the Policy from RGICL.
4. Includes payment of an allowance of Rs. 1,500/- towards out of
pocket expenses in case of a minimum of 3 days of
hospitalisation of the dependant child below the age of 12
years.
5. Up to Rs.1, 500/- will be reimbursed as ambulance charges for
transporting the patient to the hospital during an emergency.
6. Reimbursement of expenses for carriage of dead body in case of
accidental death is Rs.2500/-
7. Education grant of Rs.5000/- for one dependant child, and
Rs.10000/- for more than one dependant child below the age of
25 years and 28 years in case of girl child will be provided in
case of accidental death and permanent total disability of the
Insured.
8. Expenses for Day care treatments /surgeries is covered where
24 hours hospitalization is not required.
9. Reimbursement of medical expenses where medical treatment
is administered at home under special circumstances.
B.
Floating Facility .Reliance Healthy Family Policy. is a mediclaim insurance coverage with
Floater will be reimbursed for transporting the patient to the hospital
during an emergency benefit i. e. for family of 1+3 consisting of policy
holder, spouse & 2 (two) dependent children under Plan A and
for dependent parents of policy holder under Plan B. This policy is valid
for both Plan A & Plan B with a single sum insured and one member or
all the members put together can avail hospitalization benefits during
the policy period for the sum insured.
Branch Code For becoming a member of the scheme, the Proposer has to fill up a
Number for RGICL simple Proposal Form in triplicate , as per Annexure- A enclosed with
business circular
ii) Branch Code Number for RGICL business :
Branches must mention, on the top of the Proposal Form, the 8 . digit
Branch Code no.as allotted by RGICL. This Branch Code No. will consist
of the UCO Bank.s Code No. for RGICL business i.e. 3000, suffixed by
the Branch.s 4-digit ID No. For example, the Branch
Code No. for Kolkata Main Branch (ID No. 0190) will be .30000190..

Process for Proposal form should be submitted in triplicate (original+2 copies).

submission of Branches are advised to follow the procedure as under:
proposal form : 1. Original proposal form will be collected by RGICL representatives.
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 2. 2nd copy to be retained by the Branch.
3. 3rd copy to be given to policy member as acknowledgement.
The Tables for the Premium amounts payable for sum insured ranging
from Rs. 50,000/- to Rs. 5,00,000/- under
Plan . A and Plan . B are given in ANNEXURE . B.
The Money Receipt against the payment of premium will be issued to
the Proposers by RGICL.
The insurance cover would commence from the date of payment of
the premium.
Age limit of i) Age limit for first time coverage - upto 65 years (completed)
customers joining ii) Age limit for renewal of policy . upto 75 years (completed)
the scheme
Tax Benefit Policy holders shall be eligible for income-tax exemption under Sec 80D
as per Income tax rules.
Detailed CHO/Retail Banking/31/2009-10, 08.02.2010
guidelines

UCO Griha Raksha Policy - In association with Reliance

General Insurance Company Ltd (RGICL)
- Single premium Insurance Cover for house Property/assets

Single premium Insurance cover from Rs.1 lac to Rs.100 Lacs for
Scheme the property/assets created under our Bank’s Home Loan from
01.06.2010
The premium payable has no bearing with the age of the
borrower.The premium is based on the tenor of the loan and
quantum only.
Objective The UCO Griha Raksha Policy offers insurance coverage to the
Home Loan Borrowers of the bank covering house property
mortgaged to the bank to the extent of value of the house property
financed by the bank.
ELIGIBILITY All existing and new Home Loan Borrowers are eligible to cover
their assets under the policy. The age of the borrower has no
bearing on the pricing/premium payable, which is merely
determined by the tenor of the loan
and the quantum only.
However the minimum tenure of loan reckoned for the insurance
cover is 3 years and maximum as 20 years.

PREMIUM Premium shall be calculated by the branches on the basis of loan

amount and the tenure of loan, vide
Annexure – B (for upto Rs.50.00 Lacs) and
Annexure – C (for above Rs.50.00 Lacs to Rs.100.00 Lacs).
is exclusive of service tax. load the service tax . The prevailing rate
of service tax being 10.30%.

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  Minimum amount of insurance coverage is Rs.1 lac and the
INSURANCE maximum cover is Rs.100 lacs, and the cover shall be
COVER equivalent to the value of the security/asset created less the
notional value of land in the case independent houses. For
loan below Rs. 1.00 Lacs, the borrower would be required
to pay the premium applicable for Rs.1.00 Lac cover and
any factional amount of value of asset/loan, the same
should be rounded off to the nearest lac on the higher
amount.
 The insurance coverage will be available in case of
damage/loss property mortgaged to the bank by fire,
lightening, explosion, implosion, aircraft damage, riot, strike,
and malicious damage, storm, cyclone, typhoon, tempest,
hurricane, tornado, flood and inundation, impact damage,
subsidence and landslide including rock slide, bursting and /
or overflowing of water tanks, apparatus and pipes, missile
testing operations, leakage from automatic sprinkler
installations, and bush fire.
cover The insurance cover will be available from the date of debit of
premium amount from the borrower’s Savings Bank or Current
Deposit or Home Loan account.
Detailed The existing borrower may avail this coverage within 6(six) months
guidelines from the date of this circular
CHO / Retail /06/ 2010-11, Dated: 14th June 2010

Group Life Insurance Cover Scheme for our Educational Loan borrowers
in tie-up with Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. (Kotak Life).

Benefits of the Scheme

With a view to ensure coverage of all the young Education Loan borrowers by way a
convenient and affordable term life cover, a Group Life Insurance cover
It should be ensured that all the NEW Education Loan applicants avail of this facility, as the
scheme is primarily aimed at providing life cover to the extent of the loan sanctioned to the
student borrower against an untimely death (accidental or natural), during the entire tenor of the
loan and at a very low one time premium payment With a view to ensure coverage of all the young
Education Loan borrowers by way a convenient and affordable term life cover, a Group Life
Insurance cover
Coverage :-
All new Educational Loan Borrowers, as well as the existing borrowers having at least ONE
disbursement due/pending for disbursement for pursuing studies in India or abroad as on the date
of this circular may join the Scheme.
The existing education loan borrowers, however it is reiterated should join the scheme within
30.09.10.
Age:-
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 Minimum age of entry into the Scheme is 15 years with maximum being 33 years.
Maximum age at maturity is 50 years. The age is to be reckoned on the basis of
completed year. For calculation of age under the Scheme, the age of the borrower as on the last
birthday
Proof of Age- Educational Loan Borrowers joining the Group Scheme of Kotak Life will have to
furnish a proof of age with any of the document as mentioned in the
Annexure – III
‘Non Medical Limit (NML)” shall mean the cut off limit upto which Educational Loan
Borrowers are not required to go for any Medical test. Instead, they will only be required to
submit a Declaration of Good Health (DOGH), which is part of the application for the Insurance
cover.
Amount of Insurance Cover
Life Insurance Cover under this scheme will be available for all educational loan
borrowers up to the maximum extent of loan amount sanctioned as under:
1. For Study in India : Rs. 10.00 lacs
2. For Study Abroad : Rs. 20.00 lacs
The insurance cover will be effective from the date of credit of the premium amount by the
branch to the “Central Premium Collection of Kotak Life” , subject to acceptance of enrolment
and underwriting of risk by Kotak Life. However, such effective date will not be earlier than the
date of the application and actual effective date of the loan.

Premium Calculation:-
In case of new sanctions premium payable shall be calculated from the premium chart
on the basis of (a) completed age of the borrower (X Axis), (b) the tenure of
the loan which shall be inclusive of the course period plus the moratorium and
repayment period (principal loan repayment tenor) (Y Axis)
In case of existing borrower s, as the cover would commence only from the date of
payment of the premium , the completed age of the student on the date of joining , the
remaining course period plus moratorium plus the repayment tenor of the loan and loan amount
sanctioned should be reck oned for calculation of the premium

(The premium collected by the CBS branches shall be credited to the “Central Premium Collection
Account of Kotak Life” on the same day, and Non CBS branches shall remit the premium to the
above account by Demand draft / Telegraphic transfer
Remittance of Insurance Premium
In case of CBS Branches, the premium amount shall be credited to the Current
Account No. 01900210001684 styled as “Central Premium Collection Account of
Kotak Life” with our Kolkata (Retail) Branch (ID No. 0190) furnishing (i) the
borrower’s name,(ii) loan account no. and (iii) the branch name with ID No . The
corresponding details of credit like date of credit, amount of premium and the
transaction no. should be furnished in the Annexure II being sent to Zonal Office
Non Medical Limit *
No Medical Examination shall be required for all eligible borrowers/ members joining the
Scheme. The entry to the Scheme will be merely based on a Declaration of Good Health (DOGH)
by the borrower at the time of join ing the Scheme. The Enrolment Form will contain the format of
declaration of good health.
Entry Age Non Medical Limit

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____________________________ (Rs. In lacs)_________
15 - 33 years Rs. 20 lacs___________

Termination of Insurance Cover

Coverage of an insured member shall terminate on the earliest occurrence of any one of
the following events:
(i) The date on which the loan tenure comes to an end.
(ii) On the date of member’s death.
(iii) The date on which member attains the age of 50 years.
(iv) The date on which the premium for the member ceases
Exclusion
Death due to suicide, whether sane or insane, within the first year of coverage, shall not
be payable by Kotak Life. Similarly, no benefit is payable under the Scheme when the
date of loss precedes the Effective Date of Coverage.
Refund of Insurance Premium
In cases of pre-closure of account due to any reason, the proportionate
premium shall be refunded by Kotak Life at the time of foreclosure of the loan as
per the surrender value formula given below:
Surrender Value = 75% x Premium Paid x (1- [1 / Cover term]) x (Outstanding Cover
Term/Cover Term) x (Outstanding Amount/Total Amount)
* Single premium will be taken net of service tax and outstanding loan amount will
be obtained from the ‘Sum Assured Schedule’
Income :-
Branches shall be eligible to receive administrative charges on the premium collected @ 10% of
the net premium
Branches should note to remit the entire premium collected and NOT debit any amount towards
their administrative charges receivable
For Detailed Guidelines :- CHO / Retail / 10 / 2009-10,Dated: 10th July 2009

यकू ो मेडी केयर

UCO MEDI + CARE BIMA SCHEME
GROUP MEDICLAIM INSURANCE SCHEME
UCO MEDI + CARE BIMA SCHEME is a new Group Mediclaim Insurance
Scheme formulated by our Bank in tie -up with M/s National Insurance Company
Ltd (NICL), to meet the expectations and needs of our customers (both account
holders and non account holders, including staff members) and to provide value added
service to them.
The scheme basically covers the medical expenditure incurred on Hospitalisation
for illness / disease or injury and also Accident Cover (only death benefit).
165
Options to the Proposer. Plan A: To cover a family of four persons, namely, the
Primary Member, Spouse and two dependent children.
Plan B: To cover a family o f six persons, namely, the
Primary Member, Spouse, Two dependent children and
Dependent parents of the primary member.
Age limit i) Age limit for first time coverage – upto 65 years
ii) Age limit for renewal of policy – upto 80 years
Coverage Reimbursement of Hospitalisation expenses for illness /
diseases contracted or injury sustained by the insured person.

Reimbursement In case of any claim becoming admissible under the policy,

the insurance company, through TPA ( Third Party
administrator) will pay to the Hospital / Nursing Home or injured
person, subject to a maximum of sum insured amount for the
policy period.
Floating Facility This policy is valid for both Plan A and Plan B with a
single sum assured and one member or all t he members put together
can avail hospitalisation benefits during the policy period for the sum
insured.
Proposal Form For becoming a member of the scheme, the Proposer has to
fill up a simple proposal form in quadruplicate
Branch code Number Branches must mention, on top of the Proposal Form, the 8
for digit Branch Code allotted by NICL. This Branch Code consists of
NICL Business UCO Bank’s Code No. for NICL Business “9279”, suffixed by the
Branch’s 4 digit ID No.
Photograph. Proposal form should b e submitted in quadruplicate (
original + 3 copies) along with two stamp size photos of all the policy
members individually. The photos of all the members to be affixed on
the original proposal form only.
Submission of Proposal Original Proposal for m , affixed with photographs to be
Forms sent to NICL Branch / Office
nd
2rd copy also to be sent to NICL Branch / Office.
3 copy to be retained by the Branch
th
4 copy to given to policy member as acknowledgement

Payment of Premium The premium payable by the P roposer depends on the sum
insured and plan selected and does not depend on the number of
members joining the policy. The table for
premium payable are given in the Annexure. The premium collected has
to be sent to NICL along with the Proposal form

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Administrative Charges An administrative charge of Rs50/ - per policy is to be
recovered from the Proposer at the time of collecting premium
and should be credited to “Exchange & Commission A/c
Bancassurance (Mediclaim)”
Policy Period One year from the date o f payment of premium
Policy Bond The Policy Bond shall be issued directly to the Proposer by
the concerned Branch / Office of NICL.
Photo ID Card to Third Party Administrators (TPA) will issue photo ID Cards to the Policy
Policy Holders. Holders in 3 – 4 weeks time from the date of joining.

Claim Procedure 1. Details of Hospital / Nursing Home / Medical Practitioner should

be given by the insured person to the TPA immediately by calling
their Toll Free Number and in case of emergency, within 24 hours of
hospitalisation.
2. TPA, after due verification of the claim, will issue a pre
authorization letter to the Hospital / Nursing home.
3. TPA shall make payment either to Hospital / Nursing Home or
to the insured person as the case may be.
4. Final claim along with rec eipted Bills / Cash Memos, Claim Forms
and the List of Documents as per claim form should be submitted to
the TPA within 7 days of completion of treatment.
5. In case Policy Holder does not opt for the service of TPA, the
bills along with claim should be subm itted directly to M/s
National Insurance Company Ltd.
List of Documents 1. Claim Form
required 2. Discharge Summary
for claim. 3. Prescription with Bills
4. Test Reports
5. any other document required by TPA

List of Documents for 1. FIR

claim 2. Death Certificate
due to personal accident 3. Post Mortem Certificate
4. any other Documents required by NICL.

167