Annexure - I (IAD Cir. No. 32 /2017 Dated 21.08.2017) Chapter - Iv Customer'S Accounts - General Instructions

Annexure – I
(IAD Cir. No. 32 /2017 dated 21.08.2017)

CHAPTER – IV
CUSTOMER'S ACCOUNTS - GENERAL INSTRUCTIONS
1. With the increasing use of banking channel, the customers are making increasing
use of the cheques, drafts and other banking instruments to meet their liabilities /
obligations. The value of these instruments may also be in fraction of a rupee, as the
customers might be making payments in full discharge of their liability.
1.1. Branches should ensure that any transaction, including cheque presented for clearing
/ collection or for purchase of draft etc, having money value in fraction of a rupee, are not
refused for the reason that the transaction involves fraction of a rupee.
1.2 It is clarified that rounding off the interest amount to the nearest rupee by Bank is with
the intention to make the process simpler and hassle free. However, the customer – induced
transactions having value in paise cannot be disallowed on the plea that the interest allowed
/ charged is rounded off.
2. The account holder be advised to immediately intimate to the bank, any change in
his address and get acknowledgement thereof obtained.
3. Pass books / Statement of accounts
3.1 A pass book will be issued by the bank for each account, which will contain record of
all its transactions. The customers should be advised to get their pass books updated
periodically. The customers should be advised to quote account number on withdrawal slip,
cheque, pay-in-slip and any other communication, addressed to the bank. If any customer
desires to have statements of his account periodically, instead of passbook, his request will
be obtained and held on record and recorded in a register in order of the intervals at which
the same is to be provided by the Bank. Depending on the intervals at which such
statements are to be sent, the statement would be generated and despatched in closed
covers; the date of despatch being marked against the last entry in the Register. The
customers may be encouraged to make use the internet banking facility. The statement of
account can also be sent through e-mail, depending upon the mandate from the customer.
Address / telephone number/e-mail address of the branch must be mentioned in the pass
books / statement of accounts / any communication to be issued to the customers. Legible
print of Statement of accounts / pass books should be given to the account holder.
3.2 The Tarapore Committee (set up by the Reserve Bank of India for undertaking
procedures and performance audit on public services in the banks under the aegis of Shri
S.S. Tarapore) observed that banks invariably show the entries in depositors’ pass books /
statement of account as “By clearing” or “By cheque”. It has also been observed that in
case of Electronic Clearing System (ECS) and RTGS/NEFT, banks invariably do not
provide any details even though brief particulars of the remittance are provided to the
receiving bank. In some cases, sophisticated codes are used for computerized entries
which just cannot be deciphered. The Committee has recommended on total compliance of
the system and insisted that the ad hoc committees of banks must take appropriate
remedial action.
Updated up to 30/06./2017 I & AD BOI / CH. IV Page 1 of 140

3.3 With a view to avoiding inconvenience to depositors, Reserve Bank of India accepted
the recommendations of the Tarapore Committee and advised that, the banks should avoid
such inscrutable entries in passbooks / statements of accounts and ensure that brief,
intelligible particulars are invariably entered in pass books / statements of account.
3.4 The ad hoc committee of our Bank desired that;
(a) Branches should provide complete information of the entries in the passbooks /
statements of account so that the customers are able to identify the transactions.
(b) Branches should avoid inscrutable entries in the passbooks / statements of account
and ensure that brief, intelligible particulars are invariably entered in the passbooks /
statements of account.
Accordingly, users at all levels are advised to ensure that while entering transaction in
customers’ accounts, complete particulars such as the name of the payee etc., as well as
details of deposits such as transfer particulars i.e. by clearing cheque or by outstation
cheque or by electronic fund transfer etc. must be mentioned so that the passbook /
statement of account show complete details when printed thus enabling the customers to
identify the transactions.
3.5 Customer should be advised to send the passbook to the bank for completion at
least once a month. The account holder be advised to carefully examine the same and
mistakes if any detected therein, should be immediately brought to the notice of the
Manager. Failing this, the account holder will be deemed to have acknowledged
correctness of all the transactions recorded in the pass book/Statement of Account.
3.6 Delay in preparation and despatch of statements of accounts and pass books, are
widespread complaints from depositors. Accordingly, Pass books should be completed
immediately on tendering. In Metro and Urban branches having large number of Savings
and Current Account customers, separate Counters should be identified for updating of
passbooks. The passbook should be updated immediately on presentation and should not
be kept pending.
3.7 The passbook / statement of account / credit / debit advice issued in customer’s
account must not be left on the counter for the customer to pick up during his visit to the
branch. Leaving these on the counters is in violation of banking code on the maintenance of
confidentiality of transactions between the customers, as any other person visiting the bank
can look at others’ bank documents, or even use them with a criminal motive.
3.8 The depositor should also be advised to remain careful in keeping his passbook, in
proper custody, as the bank will not be responsible, for any loss to the customer as a result
of loss of the passbook.
3.9 If the passbook is lost or stolen, a duplicate commencing from the opening of the
current half-year should be issued and a copy of the account, prior to that date, can also be
supplied on demand.
3.10 All branches shall display a board at a conspicuous place reading as under:

“ Dear Customer,
Please do not accept any manual entry in your pass book / statement of A/c”
3.11 ISSUE OF PASS BOOKS-SAFEGUARDS:
(a) Every Saving Fund, R.D., current account (including overdraft) and cash credit
account customer will be furnished with a passbook / statement of account
containing a copy of bank's respective account rules.
(b) Pass books should, as far as possible, be collected by the tenderer from the
bank duly filled up and completed immediately after the transaction. If left overnight
with the bank, the tenderer will be given a simple receipt, (form no. PNB-649),
retaining carbon copy thereof for record. If the pass book is not collected against the
receipt within a week, it should be sent to the account-holder by registered AD post
at his cost.
(c) All pass books retained overnight for completion should be entered in pass
book receipt register The official issuing the receipts on form No. PNB-649 should
sign after the last entry in pass book receipt register in token of having satisfied
himself that all the pass books received have been duly entered. Pass books
received by post should be similarly entered in the pass book receipt register and
dealt with accordingly.
(d) Should the customer call at the bank for getting his pass book updated, the
checking official, if possible, should get it completed and hand it over to him/her
against his/her signatures in the pass book receipt register. (Procedural instructions
for entering pass book in the register, when pass books are delivered at the counter,
need not be observed to save time and avoid delay).
(e) Pass book box should not be used.
(f) A pass book should be an exact copy of the account in the computer. Before
printing a pass book the SWO concerned should verify that the name, address and
the account number written on the pass book cover correspond to the account being
printed.
(g) Various credit/debit advices should be sent to the customers at their available
address with the branch through post as and when the credit/debit is made in the
account. If the customer visits the branch personally and requests for the same, it
may be handed over to him or to his authorized person. In case, the customer
requests specifically not to send the statement of account/pass book by post, the
same should be complied with.
(h) Proper control over pass books should be exercised. Pass books should
always be delivered against signatures of recipient, after fully satisfying about the
identity of the recipients.
(i) As far as possible, it should be ensured that the depositor has not put his
specimen signatures any where in the Pass Books. If these are found to be there,
customer should be advised to delete it then & there in such a manner that these are
not legible.

(j) Pass book remaining with the branches overnight should be held under lock
and key and in the custody of a named responsible official.
3.12. ADDITIONAL SAFEGUARDS FOR ISSUE OF DUPLICATE PASS BOOK
(i) The twin objective of providing various safeguards for issuing duplicate pass
books has been the proper identification of the account holder and the delivery of the
cheque book/pass book to the account holder only and to none-else because a
number of instances have come to light where culprits could defraud the bank by
obtaining duplicate pass book on the strength of letter of request under forged
signatures.
(ii) Whenever a request for issue of passbook / statement of account is received,
either from the account holder or from a third person (sent by the account holder with
letter of authority), the tenderer of request may be asked to write the complete
address of account holder on the letter of request/ application, in the presence of
concerned supervising official.
(iii) The supervising official, by reference to the concerned account, may verify the
correctness of the address so given. In case of any discrepancy, utmost caution
must be exercised in issuance of cheque book/duplicate pass book.
(iv) The Branch Manager or the authorised official should exercise precaution and
vigilance at the time of passing orders for issuance of duplicate pass book on the
basis of letter of request. He may call for the Account Opening Form or information
available in the system and interview the presenter briefly (in case he does not know
him personally) so as to eliminate the chances of pass book falling in wrong hands.
Questions like, when was the account opened or how many years back it was
opened, who introduced the account, what were the last one or two major
withdrawals/deposits into the account etc. may be asked. Further, signatures and
address on the letter of request may be obtained in the presence of the officer
authorising issuance of cheque book or duplicate pass book (where the account
holder himself comes personally to the branch).
(v) Of-course, interview is to be conducted informally and with a personal touch
without offending the account holder.
(vi) In no case the duplicate Pass Book be issued to a person other than the
account holder. In case an application for issue of duplicate passbook is presented
by a person other than the account holder, duplicate pass book should be sent by
Regd. AD post only at the address available in the relative account opening form.
4. PAN / GIR Number Or Form 60
4.1 The prospective account holder is required to mention his / her PAN / GIR no. on the
documents relating to certain specified transactions. The concerned official, who receives
any document relating to a transaction requiring quoting of PAN, should verify the PAN (as
recorded on the document) from the original and put his signature having verified the
original. In case the customer is not having the same, Form No. 60 is required to be
obtained. Finance Minister, Govt. of India, has desired that PAN of all the Deposit Account
Holders of the Bank should be captured in the system and made readily available in case of
need.

4.2 Documents pertaining to transactions requiring quoting of Permanent Account
Number (PAN)
114B transactions in relation to which permanent account number is to be quoted in
all documents for the purpose of clause ( C) of sub-section of section 139A.
Every person shall quote his permanent account number in all documents pertaining
to the transactions specified in the Table below, namely:-
S. Nature of Transaction Value of transaction
No.
(1) (2) (3)
1 Sale or purchase of a motor vehicle or vehicle, as All such transactions.
defined in clause (28) of section 2 of the Motor
Vehicles Act, 1988 (59 of 1988) which requires
registration by a registering authority under Chapter
IV of that Act, other than two wheeled vehicles.
2 Opening an account [other than a time-deposit All such transactions.
referred to at Sl. No.12 and a Basic Savings Bank
Deposit Account] with a banking company or a co-
operative bank to which the Banking Regulation Act,
1949 (10 of 1949), applies (including any bank or
banking institution referred to in section 51 of that
Act).
3. Making an application to any banking company or a All such transactions.
co-operative bank to which the Banking Regulation
Act, 1949 (10 of 1949), applies (including any bank
or banking institution referred to in section 51 of that
Act) or to any other company or institution, for issue
of a credit or debit card.
4. Opening of a demat account with a depository, All such transactions.
participant, custodian of securities or any other
person registered under sub-section (1A) of section
12 of the Securities and Exchange Board of India
Act, 1992 (15 of 1992).
5 Payment to a hotel or restaurant against a bill or bills Payment in cash of an amount
at any one time. exceeding fifty thousand
rupees.
6 Payment in connection with travel to any foreign Payment in cash of an amount
country or payment for purchase of any foreign exceeding fifty thousand
currency at any one time. rupees.
7 Payment to a Mutual Fund for purchase of its units. Amount exceeding fifty
thousand rupees.
8 Payment to a company or an institution for acquiring Amount exceeding fifty
debentures or bonds issued by it. thousand rupees.
9 Payment to the Reserve Bank of India, constituted Amount exceeding fifty
under section 3 of the Reserve Bank of India Act, thousand rupees.
1934 (2 of 1934) for acquiring bonds issued by it.

10 Deposit with a banking company or a co-operative Cash Deposits:-
bank to which the Banking Regulation Act, 1949 (10 (i) exceeding fifty thousand
of 1949), applies (including any bank or banking rupees during any one day: or
institution referred to in section 51 of that Act).
(ii) post office (ii) aggregating to more than
two lakh fifty thousand rupees
during the period 09th
November,2016 to 30th
December,2016.”
11 Purchase of bank drafts or pay orders or banker’s Payment in cash for an
cheques from a banking company or a co-operative amount exceeding fifty
bank to which the Banking Regulation Act, 1949 (10 thousand rupees during any
of 1949), applies (including any bank or banking one day.
institution referred to in section 51 of that Act).
12 A time deposit with, - Amount exceeding fifty
(i) a banking company or a co-operative bank to thousand rupees or
which the Banking Regulation Act, 1949 (10 of aggregating to more than five
1949), applies (including any bank or banking lakh rupees during a financial
institution referred to in section 51 of that Act); year.
(ii) a Post Office;
(iii) a Nidhi referred to in section 406 of the
Companies Act, 2013 (18 of 2013); or
(iv) a non-banking financial company which holds a
certificate of registration under section 45-IA of the
Reserve Bank of India Act, 1934 (2 of 1934), to hold
or accept deposit from public.
13 Payment for one or more pre-paid payment Payment in cash or by way of
instruments, as defined in the policy guidelines for a bank draft or pay order or
issuance and operation of pre-paid payment banker’s cheque of an amount
instruments issued by Reserve Bank of India under aggregating to more than fifty
section 18 of the Payment and Settlement Systems thousand rupees in a financial
Act, 2007 (51 of 2007), to a banking company or a year.
co-operative bank to which the Banking Regulation
Act, 1949 (10 of 1949), applies (including any bank
or banking institution referred to in section 51 of that
Act) or to any other company or institution.
14 Payment as life insurance premium to an insurer as Amount aggregating to more
defined in clause (9) of section 2 of the Insurance than fifty thousand rupees in a
Act, 1938 (4 of 1938). financial year.
15 A contract for sale or purchase of securities (other Amount exceeding one lakh
than shares) as defined in clause (h) of section 2 of rupees per transaction.
the Securities Contracts (Regulation) Act, 1956 (42
of 1956).
16 Sale or purchase, by any person, of shares of a Amount exceeding one lakh
company not listed in a recognised stock exchange. rupees per transaction.
17 Sale or purchase of any immovable property. Amount exceeding ten lakh

rupees or valued by stamp
valuation authority referred to
in section 50C of the Act at an
amount exceeding ten lakh
rupees.

18 Sale or purchase, by any person, of goods or Amount exceeding two lakh
services of any nature other than those specified at rupees per transaction:
Sl. No. 1 to 17 of this Table, if any.
Provided that where a person, entering into any transaction referred to in this rule, is a
minor and who does not have any income chargeable to income-tax, he shall
quote the permanent account number of his father or mother or guardian, as the
case may be, in the document pertaining to the said transaction:
Provided further a person who has an account (other than a time deposit and a Basic
Saving Bank Deposit Account) and has not quoted his PAN or furnished Form no.60,
shall furnish his/her PAN or Form no.60 as the case may be on or before 28 th
February, 2017.
Provided also that the provisions of this rule shall not apply to the following class or
classes of persons, namely:-
(i) The Central Government, the State Governments and the Consular Offices;
(ii) The non-residents referred to in clause (30) of section 2 of the Act in respect of
the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or
10 or 12 or 14 or 15 or 16 or 17 of the Table.
Explanation:-For the purposes of this rule.-
(1) ―payment in connection with travel includes payment towards fare, or to a travel
agent or a tour operator, or to an authorised person as defined in clause (c) of
section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(2) ―travel agent or tour operator includes a person who makes arrangements for air,
surface or maritime travel or provides services relating to accommodation, tours,
entertainment, passport, visa, foreign exchange, travel related insurance or other travel
related services either severally or in package;
(3) ―time deposit‖ means any deposit which is repayable on the expiry of a fixed period.
In rule 114B, after the third proviso, the following proviso shall be inserted namely,-
“Provided also that a person who has an account (other than a time deposit
referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account)
maintained with a banking company or a cooperative bank to which the Banking
Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution
referred to in section 51 of that Act) and has not quoted his permanent account
number or furnished Form No. 60, as the case may be, at the time of opening of
such account or subsequently, he shall furnish his permanent account number or
Form No. 60, as the case may be, to the person specified in clause (c) of sub-rule
(1) of rule 114C on or before the 28th day of February, 2017.”
114C. Verification of Permanent Account Number in transactions specified in rule

114B.-
(1) Any person being,-
(a) a registering officer or an Inspector-General appointed under the
Registration Act, 1908 (16 of 1908);
(b) a person who sells the immovable property or motor vehicle;
(c) a manager or officer of a banking company or co-operative bank, as the
case may be, referred to at Sl. No. 2 or 3 or 10 or 11 or 12 or 13 of rule 114B
(d) post master;
(e) stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a
trust deed, registrar to issue, merchant banker, underwriter, portfolio manager,
investment adviser and such other intermediaries registered under sub-section (1)
section 12 of the Securities and Exchange Board of India Act, 1992 (15 of
1992);
(f) a depository, participant, custodian of securities or any other person registered
under sub-section (1A) of section 12 of the Securities and Exchange Board of
India Act, 1992 (15 of 1992) referred to at Sl. No. 4 of rule
114B;
(g) the principal officer of a company referred to at Sl. No. 3 or 4 or 8 or 12 or 13
or 15 or 16 of rule 114B;
(h) the principal officer of an institution referred to at Sl. No. 2 or 3 or 8 or 10 or
11 or 12 or 13 of rule 114B;
(i) any trustee or any other person duly authorised by the trustee of a
Mutual Fund referred to at Sl. No. 7 of rule 114B;
(j) an officer of the Reserve Bank of India, constituted under section 3 of the
Reserve Bank of India Act, 1934 (2 of 1934), or of any agency bank
authorised by the Reserve bank of India;
(k) a manager or officer of an insurer referred to at Sl. No. 14 of rule 114B,
who, in relation to a transaction specified in rule 114B, has received any document shall
ensure after verification that permanent account number has been duly and correctly
mentioned therein or as the case may be, a declaration in Form 60 has been duly
furnished with complete particulars.
(2) Any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule
114B, who, in relation to a transaction specified in the said Sl. No., has issued any
document shall ensure after verification that permanent account number has been
correctly furnished and the same shall be mentioned in such document, or as the case
may be, a declaration in Form 60 has been duly furnished with complete particulars.
In the principal rules, in rule 114C, after sub-rule (2), the following sub-rule shall be
inserted, namely:—
“3. The person referred to in sub-rule (1) or sub-rule (2) who has received any document
in which permanent account number is mentioned or as the case may be, a declaration in
Form No.60 has been furnished, shall ensure that the valid permanent account number

or the fact of furnishing of FormNo.60, is duly mentioned in the records maintained for the
transactions referred to in rule114B and the permanent account number or the details of
Form No.60 are linked and mentioned in any information furnished to the income-tax
authority or any other authority or agency under any provision of the Act or any rule
prescribed therein.”
114D. Time and manner in which persons referred to in rule 114C shall furnish a
statement containing particulars of Form No. 60.-
(1) Every person referred to in,-
(I) clauses (b) to (k) of sub-rule (1) of rule 114C; and
(II) sub-rule (2) of rule 114C and who is required to get his accounts audited under
section 44AB of the Act,
who has received any declaration in Form No. 60, on or after the 1st day of January,
2016, in relation to a transaction specified in rule 114B, shall-
(i) furnish a statement in Form No. 61 containing particulars of such
declaration to the Director of Income-tax (Intelligence and Criminal Investigation) or
the Joint Director of Income-tax (Intelligence and Criminal Investigation) through
online transmission of electronic data to a server designated for this purpose and
obtain an acknowledgement number; and
(ii) retain Form No. 60 for a period of six years from the end of the financial year in
which the transaction was undertaken.
(2) The statement referred to in clause (i) of sub-rule (1) shall,-
(i) where the declarations are received by the 30th September, be furnished by
the 31st October of that year; and
(ii) where the declarations are received by the 31st March, be furnished by the
30th April of the financial year immediately following the financial year in
which the form is received.
(iii)In the principal rules, in rule 114D, in sub-rule (2), the following proviso shall be
inserted, namely:
“Provided that the statement in respect of the transactions listed in clause (ii) of column
(3) of serial number (10) of the Table under rule 114B shall be furnished on or before
the 15th day of January, 2017.
(3) The statement referred to in clause (i) of sub-rule (1) shall be verified—
(a) in a case where the person furnishing the statement is an assessee as defined
in clause (7) of section 2 of the Act, by a person specified in section
140 of the Act;
(b) in any other case, by the person referred to in rule 114C.
114E. Furnishing of statement of financial transaction.-
(1) The statement of financial transaction required to be furnished under sub-section (1)
of section 285BA of the Act shall be furnished in respect of a financial year in Form

No. 61A and shall be verified in the manner indicated therein.
(2) The statement referred to in sub-rule (1) shall be furnished by every person mentioned
in column (3) of the Table below in respect of all the transactions of the nature and value
specified in the corresponding entry in column (2) of the said Table in accordance with
the provisions of sub-rule (3), which are registered or recorded by him on or after the 1st
day of April, 2016, namely:-
S. No. Nature & Value of Transactions Class of person (reporting person)

(1) (2) (3)
1 (a) Payment made in cash for purchase of A banking company or a co-operative
bank drafts or pay orders or banker’s bank to which the Banking Regulation
cheque of an amount aggregating to ten Act, 1949 (10 of 1949) applies
lakh rupees or more in a financial year. (including any bank or banking
(b) Payments made in cash aggregating to institution referred to in section 51 of
ten lakh rupees or more during the financial that Act).
year for purchase of pre-paid instruments
issued by Reserve Bank of India under
section 18 of the Payment and Settlement
Systems Act, 2007 (51 of 2007).
(c) Cash deposits or cash withdrawals
(including through bearer’s cheque)
aggregating to fifty lakh rupees or more in a
financial year, in or from one or more
current account of a person.
2 Cash deposits aggregating to ten lakh (i) A banking company or a co-
rupees or more in a financial year, in one or
operative bank to which the Banking
more accounts (other than a current Regulation Act, 1949 (10 of 1949)
account and time deposit) of a person applies (including any bank or banking
institution referred to in section 51 of
that Act);
(ii) Post Master General as referred to
in clause (j) of section 2 of the Indian
Post Office Act, 1898 (6 of 1898).
3. One or more time deposits (other than a (i) A banking company or a co-
time deposit made through renewal of operative bank to which the Banking
another time deposit) of a person Regulation Act, 1949 (10 of 1949)
aggregating to ten lakh rupees or more in a applies (including any bank or banking
financial year of a person. institution referred to in section 51 of
that Act);
Post Office Act, 1898 (6 of 1898);
(iii) Nidhi referred to in section 406 of
the Companies Act, 2013 (18 of 2013);
(iv) Non-banking financial company
which holds a certificate of registration
under section 45-IA of the Reserve
Bank of India Act, 1934 (6 of 1934), to
hold or accept deposit from public.

4. Payments made by any person of an A banking company or a co-operative
amount aggregating to- bank to which the Banking Regulation
(i) one lakh rupees or more in cash; or Act, 1949 (10 of 1949) applies
(ii) ten lakh rupees or more by any other (including any bank or banking
mode, against bills raised in respect of one institution referred to in section 51 of
or more credit cards issued to that person, that Act) or any other company or
in a financial year. institution issuing credit card.
5 Receipt from any person of an amount A company or institution issuing bonds
aggregating to ten lakh rupees or more in a or debentures.
financial year for acquiring bonds or
debentures issued by the company or
institution (other than the amount received on
account of renewal of the bond or debenture
issued by that company).
6 Receipt from any person of an amount A company issuing shares.
aggregating to ten lakh rupees or more in a
financial year for acquiring shares
(including share application money) issued
by the company.
7 Buy back of shares from any person (other A company listed on a recognised
than the shares bought in the open market) stock exchange purchasing its own
for an amount or value aggregating to ten securities under section 68 of the
lakh rupees or more in a financial year. Companies Act, 2013 (18 of 2013).
8 Receipt from any person of an amount A trustee of a Mutual Fund or such
aggregating to ten lakh rupees or more in a other person managing the affairs of
financial year for acquiring units of one or the Mutual Fund as may be duly
more schemes of a Mutual Fund (other than authorised by the trustee in this behalf.
the amount received on account of transfer
from one scheme to another scheme of that
Mutual Fund).
9 Receipt from any person for sale of foreign Authorised person as referred to in
currency including any credit of such clause (c) of section 2 of the Foreign
currency to foreign exchange card or Exchange Management Act, 1999 (42
expense in such currency through a debit or of 1999).
credit card or through issue of
travellerscheque or draft or any other
instrument of an amount aggregating to ten
lakh rupees or more during a financial year.
10 Purchase or sale by any person of Inspector-General appointed under
immovable property for an amount of thirty section 3 of the Registration Act, 1908
lakh rupees or more or valued by the stamp or Registrar or Sub-Registrar
valuation authority referred to in section appointed under section 6 of that Act.
50C of the Act at thirty lakh rupees or more.
11 Receipt of cash payment exceeding two Any person who is liable for audit
lakh rupees for sale, by any person, of under section 44AB of the Act.
goods or services of any nature (other than
those specified at Sl. No. 1 to 10 of this
rule, if any.

12 Cash deposits during the period 09th A banking company or a cooperative
November, 2016 to 30th December, 2016 bank to which the Banking Regulation
aggregating to- Act, 1949 (10 of 1949) applies
ii) twelve lakh fifty thousand rupees or more, (including any bank or banking
in one or more current account of a person; institution referred to in section 51 of
or that Act);
(ii) two lakh fifty thousand rupees or more, in (ii) Post Master General as referred to
one or more accounts (other than a current in clause (j) of section 2 of the Indian
account) of a person; or Post OfficeAct, 1898 (6 of 1898).
st
13 Cash deposits during the period 1 April, 2016 (i) A banking company or a cooperative
th
to 9 November 2016 in respect of accounts bank to which the Banking Regulation
that are reportable under Sl. No.12
Act, 1949 (10 of 1949) applies (including
any bank or banking institution referred
to in section 51 of that Act);

Post OfficeAct, 1898 (6 of 1898).
(3) The reporting person mentioned in column (3) of the Table under sub-rule (2) (other
than the person at Sl.No.9) shall, while aggregating the amounts for determining the
threshold amount for reporting in respect of any person as specified in column (2) of the
said Table,-
(a) take into account all the accounts of the same nature as specified in
column (2) of the said Table maintained in respect of that person during the
financial year;
(b) aggregate all the transactions of the same nature as specified in column
(2) of the said Table recorded in respect of that person during the financial year;
(c) attribute the entire value of the transaction or the aggregated value of all
the transactions to all the persons, in a case where the account is maintained or
transaction is recorded in the name of more than one person;
(d) apply the threshold limit separately to deposits and withdrawals in respect of
transaction specified in item (c) under column (2), against Sl. No 1 of the said
Table..
(4)(a) The return in Form No. 61A referred to in sub-rule (1) shall be furnished to the
Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of
Income-tax (Intelligence and Criminal Investigation) through online transmission of
electronic data to a server designated for this purpose under the digital signature of the
person specified in sub-rule (7) and in accordance with the data structure specified in this
regard by the Principal Director General of Income-tax (Systems):
Provided that in case of a reporting person, being a Post Master General or a

Registrar or an Inspector General referred to in sub-rule (2), the said return in Form 61A
may be furnished in a computer readable media, being a Compact Disc or Digital
Video Disc (DVD), alongwith the verification in Form-V on paper.
Explanation.-For the purposes of this sub-rule, ―digital signature‖ means a digital
signature issued by any Certifying Authority authorised to issue such certificates by the
Controller of Certifying Authorities.
(b) Principal Director General of Income-tax (Systems) shall specify the procedures, data
structures and standards for ensuring secure capture and transmission of data, evolving
and implementing appropriate security, archival and retrieval policies.
(c) The Board may designate an officer as Information Statement Administrator, not
below the rank of a Joint Director of Income-tax for the purposes of day to day
administration in relation to the furnishing of returns or statements.
(5) The statement of financial transactions referred to in sub-rule
(i) shall be furnished on or before the 31st May, immediately following the financial year in
which the transaction is registered or recorded.
(ii) in sub-rule(5), the following proviso shall be inserted, namely:-
“Provided the statement of financial transaction in respect of the transactions listed at
serial number (12) & (13) in the Table under sub-rule(2),shall be furnished on or before
the 31st day of January, 2017.”
(6) (a) Every reporting person mentioned in column (3) of the Table under sub-rule (2)
shall communicate to the Principal Director General of Income-tax (Systems) the name,
designation, address and telephone number of the Designated Director and the Principal
Officer and obtain a registration number.
(b) It shall be the duty of every person specified in column (3) of the Table under sub-
rule (2), its Designated Director, Principal Officer and employees to observe the
procedure and the manner of maintaining information as specified by its regulator and
ensure compliance with the obligations imposed under section 285BA of the Act and rules
114B to 114D and this rule.
Explanation 1.- "Designated Director" means a person designated by the reporting person
to ensure overall compliance with the obligations imposed under section 285BA of
the Act and the rules 114B to 114D and this rule and includes-
(i) the Managing Director or a whole-time Director, as defined in the Companies Act,
2013 (18 of 2013), duly authorised by the Board of Directors if the reporting
person is a company;
(ii) the managing partner if the reporting person is a partnership firm;
(iii) the proprietor if the reporting person is a proprietorship concern;
(iv) the managing trustee if the reporting person is a trust;
(v) a person or individual, as the case may be, who controls and manages the affairs of
the reporting entity if the reporting person is, an unincorporated association or, a body of
individuals or, any other person.
Explanation 2.- ―Principal Officer‖ means an officer designated by the reporting
person referred to in the Table in sub-rule (2).
Explanation 3.- ―Regulator means a person or an authority or a Government which is
vested with the power to license, authorise, register, regulate or supervise the activity of

the reporting person referred to in the Table in sub-rule (2).
(7) The statement of financial transaction referred to in sub-rule (1) shall be signed,
verified and furnished by the Designated Director specified in sub-rule (6):
Provided that where the reporting person is a non-resident, the statement may be
signed, verified and furnished by a person who holds a valid power of attorney from such
Designated Director.
In the principal rules, in Appendix-II, in Form No.61A, in Part C, for ‘C.3’ and entries
relating thereto, the following shall be substituted, namely:-
C.3 ACCOUNT SUMMARY
C.3.1 Aggregate gross amount credited to the account in cash.
C.3.2 Aggregate gross amount debited to the account in cash
C.3.3 Aggregate gross amount credited to the account in cash from 1 st day of April,
2016 to 8 th November, 2016.
C.3.4 4Aggregate gross amount credited to the account in cash from 9 thday of
November, 2016 to 30th day of December, 2016
C.3.5 Remarks”.
3In the said rules, In Appendix-II, for ―Forms 60, 61 and 61A, the following ―Forms 60,
61 and 61A shall respectively be substituted. namely:- (Annexure attached)

Updated up to 30/06/2017 I & AD BOI / CH. IV Page 39 of 140
Explanation (*)
(I) In terms of Reserve Bank of India Directives, remittance of funds by way

of demand draft, mail/telegraphic transfer or any other mode for value of Rupees
fifty thousand and above is to be effected by debit to the customer’s account or
against cheque and not against cash payment.
(II) Reserve Bank of India, vide their letter no. DBOD.AML

275/14.01.001/2002-03 dated 9.6.2003 has clarified that since a customer is
required to have submitted Permanent Account Number (PAN) at the time of
opening of the account and the Bank is expected to have conducted necessary
due diligence under the extant 'KYC norms" quoting of PAN may not be insisted
upon for each transaction for purchase of DDs etc of Rs.50000/- and above by
debit to customers' account. So in cases where Customers have furnished
permanent account No. at the time of opening account or subsequently,
obtaining of PAN No. again is not required when he applies for issuance of
draft/TPO/TT etc. for Rs.50000/- and above.
4.3 General Instructions
4.3.1 Whenever a new account is opened, PAN number be obtained and recorded in
the field ‘PAN/GIR No.’ under Customer Tax Details in ‘CUMM’.
4.3.2 In case the customer does not have PAN or falls under the exempted category,
Form No. 60/61, as the case may be, be obtained and the fact be recorded in the field
‘TDS Remarks’ under Customer Tax Details in ‘CUMM’.
4.3.3 In existing accounts, wherever PAN number is available, the same be recorded
in the field ‘PAN/GIR No.’ under Customer Tax Details in ‘CUMM’.
4.3.4 In terms of clarification given by Indian Banks’ Association and further examined
by Law Division, HO;
(a) If Bank is already having PAN of the account holder, there is no need for
the account holder to quote his PAN on the deposit slip whenever a cash deposit
of Rs 50,000/- and above is made in a day, even if it is deposited more than
once.
(b) Rule 114B (I. Tax Act) requires the party to the transaction i.e. the account
holder to quote his PAN and this does not apply to any person or agent of the
account holder depositing the cash in the latter’s account.
(c) Accordingly, PAN No. of the account holder, and not that of the person
making the transaction on behalf of the account holder, is required to be quoted
on the documents pertaining to the eligible transactions.

4.3.5 In case of FD, if PAN is already provided with the bank, subsequent deposits
would not require quoting of PAN. However, where account holder had submitted
declaration on 60/ PAN Declaration will be taken with each transaction exceeding Rs.
50,000/-. or aggregating to more than five lakh rupees during a financial year.
4.3.6 The Rules are applicable in case of renewal of an existing time deposit also. If
the deposit exceeds Rs. 50,000/-, renewal request has to quote PAN/GIR number of the
depositor or he has to furnish form No. 60 or aggregating to more than five lakh rupees
during a financial year.
4.3.7 In case of account in the name of two or more persons, first named person has to
comply with the requirement of furnishing PAN.
4.3.8 Transfer of an account from one branch to another is not opening of an account.
Hence, request for transfer of account does not require quoting of PAN.
4.3.9 The above Rules are applicable to all type of customers i.e. Individuals, Sole
proprietorship/ partnership firms, limited companies, clubs, Associations, Societies,
Trusts etc.
5. CATEGORY OF DEPOSITOR
5.1 SENIOR CITIZEN
a) A person who has completed 60 years of age is treated as a senior citizen Bank
offers additional interest on Fixed Deposits made by a Senior Citizen.
b) The age of the Senior Citizen depositor shall be verified through any of the
following documents:--
i) Secondary school leaving certificate indicating date of birth ;
ii) L.I.C. policy ;
iii) Voters’ identity card ;
iv) Pension payment order ;
v) Birth certificate issued by the competent authority ;
vi) Passport ;
vii) Driving license ;
viii) PAN Card;
ix) UID; or
x) Any other documentary proof to the satisfaction of the Branch Manager
A copy of the document so presented & verified shall be kept on records along with the
related Account Opening Form.
c) Once the age of Senior Citizen is verified for accepting a deposit, there is no
need to seek proof of age for renewal of deposits or while taking subsequent
deposits from him/her.

d) The benefit of increased rate of interest will be given to the senior citizen on
opening the FD accounts in their own names or with any other person ( whether senior
citizen or other wise). For accepting deposits of senior citizens jointly with other persons
below the age of sixty years, it may be ensured that the name of the senior citizen is
given as the first name in the application and an undertaking is taken from the senior
citizen that the amount of deposit belongs to him/her.
e) The benefit of additional rate of interest as applicable to Fixed Deposit of Senior

Citizens may also be permitted to the Bank's ex-staff subject to compliance of terms and
conditions as applicable to Senior Citizens. This will be in addition to the existing benefit
of 1% over and above the normal rates as being allowed to the retired staff under the
extant directive.
5.2 Premium Customer
a) A customer maintaining a balance above a stipulated limit is designated as

Premium Customer. The threshold limit for balance in the account as well as the
facilities/concessions to such customer is advised from time to time by Resource
Mobilization Division, Head Office.
6. SPECIAL CATEGORY ACCOUNTS
6.1 ARMED FORCES PERSONNEL - OPENING OF NEW ACCOUNTS
a) In the absence of KYC documents,In the cantonment areas, deposit

accounts may be opened in the name of armed forces personnel on the basis
of their identity cards. In other areas, such accounts may be opened on the
basis of an introductory letter to the Manager of the branch by the
Commanding Officer of the Unit and the signatures of the soldier(s) must be
attested by the Commanding Officer and the soldier(s) may also be asked to
produce their identity card(s), which include photograph, personal particulars
including identification marks, army number, etc. The respective particulars
should be recorded in the account opening form and the same must be
authenticated by the authorised official(s).
b) All the personnel of Indian Army, Naval Force, Indian Air Force, BSF, CRPF,
CISF, ITBP and other paramilitary forces, state police, Metro Police, RAW, IB,
CBI and Indian Coast Guard personnel are presently eligible to open account
under PNB Rakshak Scheme under scheme code SBDPS or SBDPO and
occupation code of the customer as under:PBORS; Person below Officer
Rank, OFFCR:Officer below Brigadier Rank & or equivalent BRGEQ
Brigadier & above or Equivalent. Personal Accidental Insurance (PAI) cover is
taken on the basis of above occupation codes for the benefit of defence
personnel.

6.2 REGIMENTAL, OFFICERS' MESS/CANTEEN AND OTHER NON-PUBLIC
FUND ACCOUNTS OF ARMY/NAVY/AIR FORCE
a) Account opening form on PNB- 758, should be obtained in such cases. Before
allowing overdrafts, if any, in such accounts, Incumbents incharge should fully
satisfy themselves that the authorised signatory (ies) is/are duly empowered in
this respect, besides observing usual safeguards.
6.3 ACCOUNTS IN THE NAMES OF PURDANASHIN LADIES:
a) Current accounts may not be opened in the names of purdanashin ladies without
the sanction of the Circle Office.
6.4 ACCOUNTS IN THE NAMES OF MINORS

a) Opening and operation of Savings/Term Deposits and Recurring Deposit
accounts independently should be allowed to the minors of the age of 10 years and
above on obtaining satisfactory proof of age.
b) No current account should be opened in the name of, or on behalf of, a minor,
unless a guardian of the property (and not merely of the person) of the minor has been
appointed under the Guardian and Wards Act. In such cases the account should be
opened in the form: À-B’ minor, by his guardian, ‘C-D’. The guardian must not be
allowed to draw on the account after the minor has attained majority.
c) A minor attains majority at 18 years of age. The date of majority is recorded in
the system and appropriately entered in the System while opening account. When the
minor attains majority, a fresh account opening form should be taken from him/her and
operations in the account allowed only in accordance with the instructions contained
therein.
d) In no case should a minor be allowed an overdraft.
6.5 ACCOUNTS IN THE NAMES OF ILLITERATES

a) In addition to regular Account Opening Form, prescribed Annexure on Form
No.PNB-1227 should be got executed. For deposits accounts (i.e. Saving Fund and
Fixed Deposits) of illiterate persons the following procedure is laid down for opening of
such accounts.
(i) The thumb impression on the account opening form along with Annexure
PNB 1228 will be taken, in the presence of an officer authorised to open
accounts and witnessed by respectable person, known to the bank and
attested by an authorized officer of the bank;
(ii) A copy of photograph (passport size) of the depositor will be taken and
pasted on the Passbook. The photograph will be attested by the officer
authorized to open accounts, who will exercise care to ensure that part of the
signatures appears on the photograph and part on the account opening form.
The incumbent incharge will have discretion to pay the cost of photographs to
the debit of bank's revenue;

(iii) Where possible, brief details of one or more identification marks of the
depositor, i.e. a mole or scar will be noted on the account opening form,
under authentication of a checking official;
(iv) All other guidelines mentioned in this chapter shall also be observed for
opening of an account of an illiterate person.
6.6 ACCOUNTS IN THE NAMES OF UNDISCHARGED INSOLVENTS
a) No account should be opened in the name of an un-discharged insolvent.
6.7 ACCOUNT IN THE NAME OF BLIND PERSON

a) A blind person may be allowed to open a savings account, singly or jointly with
others. His/her signatures (if literate) and left/right hand thumb impression (if illiterate)
will be taken, in the presence of an Officer, authorised to open accounts and witnessed
by an existing account holder or person otherwise having some business relationship
with the bank and attested by the officer concerned.
b) Wherever possible, number and details of one or more identification marks of the
blind person i.e. mole or scar, will be noted on the account opening form and specimen
signatures slip, under authentication of the checking official. Three copies of
photograph, (Passport size), of the blind person, duly attested by the checking official,
will be taken and pasted on account opening form, specimen signatures slip and pass
book. The cost of photographs may be debited to the bank's revenue, at the discretion
of the incumbent incharge.
c) While opening such accounts, the rules and conditions governing such accounts,
in general and the special conditions, in view of his/her physical infirmity be written on
the account opening form and explained to the blind person, in the presence of a
witness. A suitable certificate from the witness, for having done so, should be obtained,
at appropriate place, on the account opening form.
d) A rubber stamp indicating that the account holder is blind, should be affixed on
the account opening form, specimen signatures slip; pass book, pay-in-slip, withdrawal
slip and cheque book, etc.
6.8 BANK EMPLOYEES' ACCOUNTS
(a) Incumbents Incharge while allowing opening of second/subsequent running

accounts viz. SF, CA of our Bank Staff must satisfy themselves about the genuineness
of the need for such accounts.
(b) Whenever an employee of our Bank opens account with a branch other than that
of his posting, the fact should be brought by the Account Opening Branch to the notice
of the later. As regards this, the following guidelines are laid down for future compliance:
(i) Whenever any staff member opens an account with a branch other than
that of his posting, the name of the branch of his posting will be ascertained at
the time of opening of account and should be recorded in the column for

'Occupation' in addition to his residential address in the Account Opening Form
(AOF).
(ii) The concerned official shall intimate to the branch of posting the fact of
opening of the account, through a letter, as per the format given above. The said
letter will be sent under U.P.C. In case of staff members posted at administrative
offices viz., Circle Office/ Head Office etc., the said intimation letter shall be
posted in duplicate to the concerned office of posting of the employee where
one copy shall be kept in personal file of the staff member concerned while the
second copy shall be despatched by office of posting of the staff member to the
branch where his/her 'Salary Account' is maintained.
(iii) The office copy of the letter shall be filed with the relative AOFs and the
words 'Posted at Branch/Office _______________' shall be recorded in the
system in the relevant account under proper authentication.
(iv) At the branch of posting or the branch where 'Salary Account' of staff
member is maintained, on receipt of intimation letter, the same shall be
acknowledged and filed with the relative AOF, after recording the fact
'Maintaining Account with Branch: _________________' in the relevant account
in the system under proper authentication.
(v) All accounts, other than those in the names of individuals or in the joint
names of individuals, opened by officer at any office should be scrutinised by
Manager (2nd man) where posted or the Incumbent Incharge to ensure that
appropriate account opening form has been obtained and other requisite
formalities completed. In token of this verification, the Manager / Asstt.
Manager/Incumbent Incharge should put his signature on the right hand top
corner of the account opening form.
(c) Transactions in the employees' accounts be scrutinised strictly considering the

aspect of cadre of employee vis-à-vis size & volume of transactions in the account. To
effectively monitor staff accounts ITD has customized another report on MIS server
under RAUDIT 2/23b where in staff accounts whose aggregate Credit and Debit
summation during the month exceeds Rs. 5 lacs would be reported. It is a concise
report displaying single entry of all credits and all debits in the staff account and
excludes ex-staff who have attained superannuation. Henceforth, the monitoring of the
abnormal transactions in the staff accounts would be done in the following manner:-
i) At Circle office level: Circle Head / Second man at the Circle offices to get the report
generated on monthly basis in respect of their Circle and monitor all staff accounts as
per the report with special emphasis on the transactions in the accounts of incumbent
In-charges of the branches in the Circle. In case any instance of abnormal transaction
comes to the notice of the Circle office, they may call clarification from the concerned
staff, and the same be reported under:
‘Confidential Cover’ to concerned Zonal Audit Office and a copy to Inspection & Audit
Division-HO along with their views for necessary action. All other accounts where
abnormal transactions have been noticed and the staff is posted in offices other than

their Circle, be reported to the respective CO/ZO/ZAO/HO etc., so that necessary
course of action could be initiated. The final decision/action taken in the matter by these
offices shall be conveyed to the concerned Circle Office where the account exists.
ii) At ZAO level: In view of the seriousness and gravity of the issue and to have
effective monitoring of the staff accounts, it has been decided that henceforth RAUDIT
report 2/23b would also be generated at Zonal Audit Office level for all the circles falling
under their jurisdiction and top 25% abnormal transaction accounts (amount wise) from
each circle would be specially monitored by them. Further the ZAOs must ensure that
all abnormal transaction cases detected/reported are properly dealt with and taken to
their logical conclusion by concerned Circle offices/ branches.
(iii) Incumbent Incharge of the branches should monitor the accounts of the
members of staff posted at their branches on regular intervals and to verify the
abnormal transactions in such accounts. In case any instance of such abnormal
transaction comes to the knowledge of branch Incumbent, the same be reported under
‘Confidential Cover’ to their respective Circle Head, who in turn, shall submit the same
under ‘Confidential Cover’ to Inspection & Audit Division-HO along with his views for
necessary action at our end.
(iv) The safeguards in regard to issuance of cheque books should invariably be

observed while issuing cheque books to Bank employees also, in view of the fact that a
major contributory factor in perpetration of frauds has been the free supply of cheque
books to Bank employees.
(v) In order to curb malpractices and fraudulent activities the fact of opening of
accounts in our bank by employees of other banks shall be reported to concerned bank.
(vi) The address of the employer (bank) be ascertained, from the depositor at the
time of opening of the account and should invariably be recorded in the column for
occupation in addition to his residential address, in the account opening form (AOF).
(vii) The concerned official shall intimate to employer (Bank) of the Depositor through
a letter, to be sent under UPC in the format as under:-
The Incumbent Incharge,

B.O_________________
Sir/Madam,
Reg: Mr/Ms. (name of the depositor) _______________working in your office.
This is to bring to your kind notice that Mr/Ms.________ working in your office has
opened (type of account, viz. SF account No.) with us on _________.
Please acknowledge.
Yours faithfully,
Authorised Officer

(viii) The office copy of the letter shall be filed with the relative AOF and the words
Èmployed in (name of Bank) Bank' shall be recorded in the system under proper
authentication.
(ix) Similarly on receipt of such information from other Banks in respect of accounts
opened with them by our employees, the intimation letter shall be acknowledged and
filed in the personal file of the employee.
6.9 ACCOUNTS IN THE NAMES OF SOLE PROPRIETORSHIP FIRMS
a) In case of individuals trading under impersonal names or under names other than
their own, the relevant account must clearly indicate the connection of the proprietor
with the concern. Application to open an account of sole proprietorship concern will be
taken, in which the name of sole proprietor and the name of any other person
authorised to operate upon the account, and their specimen signatures, will be
obtained. Cheques should be signed on behalf of the firm, e.g.
For The Sports Trading Company

Authorised Signatory
and not simply "The Sports Trading Company."
6.10 PARTNERSHIP FIRMS

a) An application to open an account in the name of a partnership firm will be made
on form No.PNB-1229, which will be signed by all the partners in their individual
capacity, while specimen signatures will be obtained in their representative capacity,
e.g.
For Universal Trading Company
A.B.
Authorised Signatory/ies
b) Similarly, specimen signature of a third person authorised to operate upon the

account will be taken on the account opening form in his representative capacity.
Particular care must be taken to ensure that the declarations given in the penultimate
paragraph of form No. PNB-38, are in accordance with facts.
c) In the case of professionals, like chartered accountants and solicitors, of
undoubted standing and respectability, partners of the firm may be permitted to sign in
the firm name, i.e. À.F. Ferguson and Co.’ In such cases specimens of firm's signature
in the hand writing of each operating partner must be taken.
d) Incumbents incharge will endeavour to obtain a copy of the partnership deed
from all partnership firms dealing with the bank but they should not insist on it for merely
an ordinary current account or a term deposit account.

e) The Indian Partnership Act provides for the registration of partnership firms. Non-
registration debars a firm from suing but does not affect the rights of other parties in
suing the firm. Registration has the effect of public notice and it binds the partners to the
statements filed with the registrar of firms. As a general rule, therefore, if a partnership
firm has been registered, a copy of the relative entry should be obtained from the office
of the registrar of firms and compared with the particulars on record at the branch. The
constitution advised to the bank should be in conformity with that declared to the
registrar of firms. A copy of the entry, however, may not be insisted upon in cases,
where all the partners in the firm have signed the account opening form and a copy of
relative partnership deed is on record of the bank. As a general rule, incumbents’
incharge need not press a firm dealing with the bank to get itself registered, against
their wish.
f) The Account Opening Form provides that in the event of the death, insolvency or
withdrawal of any one of the partners, the survivor(s) will have full control over the
moneys then lying to the firm's credit. Thus, when a partner dies, operations in the
account will be stopped and the credit balance may be paid to the surviving partners,
who may open a fresh account after reconstituting the firm, unless the partnership deed
specifically provides for the continuation of the partnership under the existing Name &
Style, even after the death or withdrawal of one or more partners. In the absence of
such clause in the Account Opening Form, the account of a partnership concern will be
stopped in the event of the death or withdrawal of a partner and the credit balance will
then be dealt with as a claim case. In case of doubt, incumbents’ incharge will refer to
their Circle Head for instructions.
g) Payment of bearer cheques may be made to any person including a partner
across the counter and should not be refused merely on the ground that it is drawn in
favour of a partnership firm.
h) Cheques payable to a firm may not be accepted for credit of the private account of
a partner without the sanction of the other partner(s), nor for credit of the account of an
employee of the firm without the firm's permission.
i) It is to be noted that a minor can't be a partner in a firm, but may be admitted,
with the consent of the partners, to the benefits of the firm. In such cases a letter of
declaration on form no. PNB-508, may be obtained. The date, on which a minor attains
majority, should be entered in the majority attainment register / computer records and
suitably diarised.
On his attaining majority, he should be requested to join with the other partners in
signing a fresh form no. PNB-1229
j) Hindu Undivided Family / Joint Hindu Family as a partner in a firm - Legal

position
(a) HUF cannot be a partner in a partnership firm. However, the Karta of a

HUF, in his individual capacity, can enter into a valid partnership with other
person or persons.

(b) There is no legal restriction upon the members of HUF for entering into
contract inter se or with a stranger. So, individual member of HUF can enter into
partnership with other individual member. Such contracts per se have nothing to
do with HUF.
(c) The relationship between partners arises from a contract and not from
status, as in the case of HUF. An agreement is essential in case of a partnership
where individual person or legal entity (company) can execute the contract.
(d) While accepting security of HUF property for credit facilities granted to a
partnership firm, in which either “Karta” or other nominee of HUF is one of the
partners (in his individual capacity), the matter needs to be examined thoroughly
in view of the legal implications since HUF properties are governed by Hindu Law
and every coparcener of the HUF, whether adult or minor or unborn child in the
womb, has got the right in the property. Rights of the minor in HUF property
cannot be put to stake for the purpose other than the family benefit or benefit of
the minor.
(e) The whole body of the coparceners, where they are all adult, can alienate
coparcenery property.
6.11 JOINT HINDU FAMILY ACCOUNTS

a) Since the Indian Partnership Act does not apply to a firm consisting of members
of a Hindu undivided family trading as such, form no.PNB-38 is not applicable to such a
firm. In its place form No.PNB1229 should be taken. The application on form No.PNB-
440 should be signed by the karta for self and on behalf of all the major and minor co-
parceners of the joint Hindu family, and also by the other major co-parceners.
b) Form no. PNB-1229 provides for notification to the bank of any change in the
constitution and also of the death or birth of a co-parcener. The details of minor co-
parceners along with the dates of their birth should be given thereon. The dates, on
which the minors come of age, should be entered in the majority attainment register and
appropriately diarised. A minor attaining his majority should be asked to join with the
other co-parceners in signing the existing form No. PNB - 1229 in ratification of previous
transactions.
c) In the case of death of any major or minor co-parcener, the account of the family
must be stopped, and the balance dealt with as an ordinary claim case.
d) To provide against occasions, when the death of a co-parcener in a joint Hindu
family may not come to the notice of the bank, form no. PNB-1229 includes a clause
providing that the signatories (i.e. the karta and the major co-parceners) undertake to
report to the bank, when a birth and/or a death occurs in the family.
e) In dealing with joint Hindu families, the bank has to distinguish between an
ancestral business conducted by the karta of the family on behalf of the family as a
whole and a new business undertaken by one or more of the adult members individually

or in ordinary partnership. Although the later is often erroneously described as a family
business, the family, as such, may not be liable for its debts. To meet this difficulty, form
no. PNB-1229 presumes that the family is carrying on an ancestral business and
establishes the karta. It must, however, be realised that minor members may escape
liability for business, which is not ancestral even though adult members have signed as
their guardians' this must not be overlooked when accommodation is granted,
particularly when the karta is the only adult member of the family.
f) Legal position - Hindu Undivided Family / Joint Hindu Family as a partner in

a firm
(a) HUF cannot be a partner in a partnership firm. However, the Karta of an

HUF, in his individual capacity, can enter into a valid partnership with other
person or persons.
(b) There is no legal restriction upon the members of HUF for entering into
contract inter se or with a stranger. So, individual member of HUF can enter into
partnership with other individual member. Such contracts per se have nothing to
do with HUF.
(c) The relationship between partners arises from a contract and not from
status, as in the case of HUF. An agreement is essential in case of a partnership
where individual person or legal entity (company) can execute the contract.
(d) While accepting security of HUF property for credit facilities granted to a
partnership firm, in which either “Karta” or other nominee of HUF is one of the
partners (in his individual capacity), the matter needs to be examined thoroughly
in view of the legal implications since HUF properties are governed by Hindu Law
and every coparcener of the HUF, whether adult or minor or unborn child in the
womb, has got the right in the property. Rights of the minor in HUF property
cannot be put to stake for the purpose other than the family benefit or benefit of
the minor.
(e) The whole body of the coparceners, where they are all adult, can alienate
coparcenery property.
6.12 LIMITED LIABILITY COMPANIES' ACCOUNTS
a) Before opening an account in the name of a company registered under the

Companies Act, 1956, a copy of the company's memorandum and articles of
association should be filed at the branch with the paragraphs affecting the bank's
relations with the company should be carefully read and conspicuously marked.
b) An account in the name of a company is generally opened by means of a

resolution passed by its Board of Directors. In such case form nos. PNB-1229 will be
taken-. Form No.PNB-1229 contains a request for opening of an account and also
stipulates the documents that are required to be submitted to the bank. Form no. PNB-
1229 contains a copy of the resolution passed by the Board of Directors of the company

authorising the opening of the account and stating who is authorised to operate on it.
Both of these forms will be signed by the chairman and the secretary of the company,
whilst specimen signatures of the officials authorised to operate upon the account will
be obtained in their representative capacities. Care must be exercised that the names
and designations of persons authorised to operate the account are clearly stated and,
where such an authority is in favour of a firm of managing agents, the constitution and
full particulars of such firm and the names, designations and specimen signatures of the
officials authorised to sign on its behalf must be placed on record.
c) IBA, on the basis of a representation made by a company having many site

offices, recommended that banks may accept an omnibus resolution passed by the
Board empowering its Chief Executive to open a bank account, as per Draft - I. In
addition, authority letter for operation in the account may also be obtained as per Draft –
II, given below. Incumbents Incharge are advised that whenever any corporate client
approaches for opening a deposit account in the name of a company and offers an
omnibus resolution, the same may be accepted together with the letter of authority in
respect of the persons authorised to operate the account. However, other terms &
conditions regarding opening of accounts remain unchanged.

Draft - I
DRAFT RESOLUTION
CERTIFIED COPY OF A RESOLUTION PASSED BY THE BOARD OF DIRECTORS

OF CO. LTD. AT ITS MEETING HELD ON THE DAY OF 19 WHEN A
PROPER QUORUM WAS PRESENT.
Resolved that Mr ……………………….Chairman / Managing Director / Chief

Executive/…………………..of the Company be and is hereby (authorised for and on
behalf of and in the name of the Company to open and operate on any Current
Accounts whether the same be in credit or overdrawn and other demand or term deposit
accounts with any Bank or Banks at any place or Places in India /in the state of. .. .. . . .
. . .he may approve of and for that purpose to sign the necessary account opening
forms and mandates, receipts and other documents required by the concerned bank
and to give to such Banks instructions from time to time regarding operation .of such
accounts whether the same be in credit or overdrawn including the name of any
officers/employees authorised by him to operate such accounts and the made of
operation thereof and to vary or revoke these instructions and to issue new instructions
to the Banks at his discretion from time to time and to close any of such accounts if he
so thinks fit.
RESOLVED further that the said Mr be and he is hereby also authorised

to make, draw, accept, endorse, transfer, negotiate, deal with any cheques, pay orders /
bills of exchange and other negotiable instruments/for and on behalf and in the name of
the Company and also to sign and to give discharges and receipts for any moneys
payable to the Company by any Bank in respect of any such account and generally to
do a]l such acts, deeds and things as may be necessary and proper for the purpose of
opening and operating such account or any of them including in particular to authorise
any officer or employee of the Company to operate such accounts and to exercise any
of the powers hereby conferred on him except the power to open any such accounts.
'Further resolved that Mr Chairman / Managing Director / Chief

Executive is hereby uthorized to delegate the powers hereunder given to
him to such other officers as he may deem fit from time to time on such terms and
condition as he may deem fit.’
RESOLVED that as and when required a certified copy of Board Resolution be

furnished to the concerned Bank and the Bank be requested to act thereon.

Draft - II
LETTER FROM GENERAL MANAGER (FINANCE)/CHIEF ENGINEER ADDRESSED

TO THE BRANCH MANAGER.
To
THE MANAGER
PUNJAB NATIONAL BANK
------------------
Dear Sir,
Reg…………………………………………………………………………………….
(Regd. Office ………………………………………………………………………..
As authorised under Resolution No.......................... dated of the Board of

Directors, I authorise the Bank to pay and honour all cheques or other orders
signed and all bills accepted and Promissory Notes made on behalf of the
Company by Shri (Designation).
I further certify that the Resolution No............dated of the Board of Directors as
conveyed to the Bank remains in force and the same has not been rescinded or varied.
Yours faithfully,
d) Alternatively, an official of a company may be authorised to open an account in

company’s name either by virtue of a power of attorney granted in his favour or through
powers conferred on him under the company's memorandum and articles of
association. In such cases, an application should be taken, after the powers of attorney
and/or memorandum and articles of association of the company with relative Board
Resolution, have been duly registered in the books of the bank.
e) Provided the sanction of head office has been obtained for the bank to act as a
company's bankers, an account may be opened in the name of a new company, for
collection of money received from applicants for its shares, in anticipation of the receipt
of the company's certificate to commence business. In such cases cheque books should
not be issued nor drawings be permitted until the certificate to commence business has
been produced and, in the event of the company failing to secure such a certificate, any
deposits accepted should be returned, in one sum, to the directors of the company
against their joint receipt for disbursement to the applicants.
f) Incumbents Incharge are not authorised to permit the bank’s name to be inserted
in the prospectus of any public company as the bankers of such company, without the
sanction of competent authority from their controlling office.
g) Cheques payable to a company must be credited to the company’s account.

h) Before any advance is made to a company, care must be taken to see that the
company is authorized by its memorandum and articles of association to borrow money
and to pledge the security offered and also ascertain who are empowered to sign
security documents and cheques for the purpose.
6.13 ACCOUNTS OF BANKS

a) Branches should not open operative accounts for banks without obtaining the
mandate from their competent/controlling authority.
6.14 TRUST ACCOUNTS
a) Before a trust account is opened, the trust deed must be called for and a copy or
relevant extracts taken, serially numbered and retained in an indexed file. All portions of
the deed, which in any way relate to the working of banking accounts must be entered
in the power of attorney register (form No. PNB-45), Special attention must be paid to
the following points:-
i) Is power given for any number short of all the trustees to sign cheques? If not, all
must sign.
ii) Is power given to the trustees to delegate their authority to any one or more of
themselves or to third parties ? If not, no delegation should be permitted.
iii) Is power given to the trustees to borrow money? If not, no overdraft should be
allowed.
b) Along with the trust deed, an account opening form on form No. PNB-1229
should be taken. This form should be signed by all the trustees and should be
accompanied by a certified copy of the resolution authorising the opening of the account
and stating the names of the trustees authorised to operate thereon.
c) Form No. PNB-1229 It provides for notification to the bank of any change in the
operators of the account effected by resolution of the Board of Trustees. Any such
instructions should be immediately recorded in the relevant account, in the system
under proper authentication of the checking official, relative letter being filed with the
account opening form.
d) A banker is bound to honour cheques drawn on a trust account without enquiry
into the purpose or destination of such cheques, unless a cheque is presented, which
on the face of it appears to contravene the purposes of the trust, then payment should
not be made until a satisfactory explanation has been received in writing from the
trustees. Great care must be taken, however, not to damage a customer's name by
returning a cheque to a third party, without sufficient reason and incumbents incharge
must act with tact and be guided by their own judgment in all such cases. The
instructions in every trust account should contain such information related to the
purposes of the trust, as is necessary for guidance in this connection.
e) No cheque drawn on a trust account may be accepted for credit of the private
account of any of the trustees, if the private account is overdrawn, unless there is

undoubted evidence in the trust deed or elsewhere that the transaction is in accordance
with the purposes of the trust account (either solely or with other trustees), the requisite
instructions must be noted in both the private and the trust accounts.
6.15 PROVIDENT FUND TRUST ACCOUNTS

a) For opening a current account in the name of a Provident Fund Trust, an
application should be taken on and a copy of the resolution passed by the board of
directors, managing committee, executive officers, councilors, etc., together with a copy
of the trust deed, be obtained. The safeguards to be observed in the maintenance of
trust accounts given above will also apply in the case of provident fund trust accounts.
b) When an incumbent incharge assumes charge of a branch he must examine all
trust accounts and the copies of the relative trust deeds at the time of, or 'as soon as
possible after, taking over charge and will certify to the Regional Manager that all such
accounts are in order. Thereafter, he will examine the accounts and copies of the trust
deeds at least once in twelve months; this duty must be diarised.
6.16 OTHER FIDUCIARY ACCOUNTS
a) The foregoing considerations apply with equal force to the accounts of funds, co-
operative banks, associations and societies, whether registered under the societies
registration act or not, in the conduct of which, memoranda and articles of association or
rules and resolutions take the place of trust deeds. In such cases account opening form
will be used.
b) There are also certain funds, mostly connected with recreations and usually of a
temporary nature, which are not registered and have no rules drawn up. In such cases
customers sometimes ask for accounts to be opened in their personal names with
additions such as 'Dinner account', 'Sports account', etc. These additions indicate that
the funds are held in a fiduciary capacity and before opening such accounts incumbents
incharge should make full enquiry regarding the existence of rules, resolutions of
meetings, etc., and note the results of their enquiries in the relevant accounts when
these are opened.
c) In the absence of any rules or resolutions of meetings to define their powers,
parties holding funds of this nature may be presumed to have full control over them.
Such accounts should, however, be opened only for undoubtedly reliable customers
and in circumstances which leave no doubt as to the true position.
6.17 LIQUIDATORS ACCOUNTS
a) When requested to open an account for a liquidator under a compulsory winding

up order, incumbents incharge should ask for production of the order of the court
appointing him as such. A copy of such order along with a written request from the
liquidator should be obtained and kept on branch record alongwith an account opening
form.

b) A liquidator appointed in voluntary winding up proceedings should be asked to
produce a certified copy of the resolution of the creditors or members of the company
appointing him as a liquidator, which copy will be retained alongwith an account opening
form.
c) A liquidator's account will be opened as "Official Liquidator of A.B.C. Co. Ltd., (in
liquidation)." Cheques should be drawn on the account in the name of the Company as:-
For A.B.C. Co. Ltd., (in liquidation)

D.F.
Official Liquidator"
d) Where two or more liquidators are appointed, all must sign cheques, unless the
order of the court in a compulsory winding up provides for less than all to act or, in a
voluntary winding up the resolution to wind up provides for less than all to sign.
e) Liquidators cannot delegate their powers to third parties. When more than one
liquidator is appointed, they may not authorise less than two of their number to sign
generally unless empowered to do so at the time of their appointment, although they
may all authorise one of their number or a third party to sign a particular document.
6.18 EXECUTORS’ AND ADMINISTRATORS’ ACCOUNTS
a) Executors and Administrators have essentially the same duties i.e. realisation,
administration and distribution of a deceased's property; they differ in the manner of
their appointment. An executor is appointed by the Will of a deceased person and his
authority is derived from the Will and does not become operative until probate has been
obtained from Court. An Administrator is appointed by the court to deal with the estate
of an intestate person, i.e. a person who has left no Will.
b) Accounts in the names of Executors and Administrators should be opened in the
following style: -
A.B. and C.D., Executors to the Estate of Y.Z., deceased,
OR
A.B., Administrator (or Administratrix) to the Estate of
Y.Z., deceased.
c) The account opening form must be signed by all the Executors to whom probate
has been granted or by all the Administrators, if more than one, and the relative probate
or letters of administration must be registered at the branch in the power of attorney
register.
d) In the absence of an arrangement to the contrary, one or more of the Executors
or Administrators may draw cheques upon the account, without any written authority
from the others. To prevent misunderstanding, however, a letter of authority signed by
all of them, stating exactly in what manner and by which of them the account will be
operated, must be taken when the account is opened. Should this letter of authority be
subsequently revoked by any one of the parties, cheques must, thereafter, be signed by
all of them or such number of them, as they then authorise.

e) Executors and Administrators can not legally delegate their powers. Any power of
attorney or other authority given to a third party to operate the account must not,
therefore, be accepted.
f) If an Executor or Administrator misapplies money belonging to the deceased's
estate and the bank is aware of it, e.g. where an amount is transferred by an Executor
from an account, as executor, to his own overdrawn personal account, which the bank
has been pressing him to reduce, the bank will be held liable to refund the amount.
Similarly, if an executor or administrator pledges securities, belonging to the estate, with
the bank in order to raise money to reduce his personal loan and the bank is aware of
the circumstances, the bank will not be able to retain the security.
g) Advances should not be granted to Executors or Administrators without the
sanction of the Regional Manager.Circle Head.
6.19 POWER OF ATTORNEY

a) Officers must keep themselves fully conversant with the law and practice
regarding power of attorney in relation to banking transactions.
b) The authority of an agent may be expressed or implied but agents dealing with
the bank are expected to have express authority and should be called upon to have it
registered with the bank.
c) Authority to operate an account may be granted by a simple letter of instructions
to the bank, signed by the customer, but the agent may not overdraw the account
unless authority to do so is given in the letter. To guard against any omission, the bank's
prescribed form no. PNB-49, which provides for comprehensive powers for the agents,
should be insisted upon. The authority letter should be signed by all the partners in
representative capacity in the case of a firm and by all the joint depositors in the case of
a joint account. Such letters of authority will be recorded in the power of attorney
register and filed along with the relative account opening forms, care being taken to see
that these are cancelled, when these lapse or are revoked.
d) The authorised officer or incumbent incharge should sign the form no. PNB-49 on
the right hand top corner in of having verified that the authority on form no. PNB-49 has
been property executed and prescribed formalities have been completed.
e) When power of attorney are presented for registration in the bank's books, those
portions of the powers to which reference may be required must be entered in the
power of attorney register, and initialed by the incumbent incharge or the authorised
officer after he has satisfied himself that these are in order and that the number and
necessary particulars of the powers are recorded in the relative account opening form
and the books of the branch. When a power of attorney lapses or is revoked, it must be
cancelled in the power of attorney register, and in all books and records, in which it has
been recorded, under the date of the cancellation and the initials of a checking official.
f) An index to the power of attorney register, giving the names of both the
grantor(s) and grantee(s) of each power of attorney, must be maintained.

g) All powers of attorney are required to be stamped in accordance with the
provisions of the Indian Stamp Act and the various states amending acts. A power of
attorney executed abroad for use in India need not be stamped in the country in which it
is executed, but it must be stamped with Indian duty within three months of its first
arrival in India.
h) The signature to a power of attorney must be properly witnessed and, where
desirable, registration by the registrar should be insisted upon and its number recorded
in the power of attorney register. Incumbents incharge should always insist on such
registration in the case of ladies and of others regarding whose identity there may be
any doubt. When a power of attorney has not been registered by the registrar, a note of
its registration by some other bank or reliable party should be made as evidence, if
thereafter needed, of its existence. All powers of attorney registered with the bank must
be branded with the branch registration stamp and initialled by a checking official.
i) A letter of authority or power of attorney must be definite and not provisional or
conditional on eventualities arising. A document of this nature, which is contingent upon
such a phrase as 'during my absence from India', is dangerous and should not be
accepted, as the return of the grantor may automatically cancel the authority or power,
without the bank's knowledge.
j) Care must be taken to see that an agent does not exceed the powers granted to
him. A general authority to transact business and to receive and discharge debts does
not give an agent power to borrow or pledge, nor to draw, accept and endorse bills; nor
does an authority to draw bills, confer authority to accept or endorse, and vice versa. If
government securities are to be dealt with, specific reference to such securities must be
made, a general reference to dealing in securities being insufficient.
k) In the event of an attorney delegating any of his powers to a third party it must be
ascertained that substitution is provided for in his power of attorney.
l) If a power of attorney written in one of the regional languages is presented to the
bank for registration, an employee or some other reliable and independent person
should translate it into English and authenticate the translation over his full signature,
before the power of attorney is registered.
m) True copies of powers of attorney, received in the bank for registration should be
maintained in a separate file, which will remain in the custody of the authorised official.
The file should be properly paged and a reference to the page entered in the 'abstract'
column of the power of attorney register for easy reference in case of need.
7 SPECIMEN SIGNATURES
a) AOF of persons authorized to operate the account shall be verified & preserved
manually.
b) The account opening form and specimen signature slip(s) will be kept in
numerical order for ready reference. Necessary precautions must be taken to prevent
an unauthorised signature slip being placed on record. It will always remain under the
control of a checking official and must be placed in the strong room overnight. The keys

thereto must remain in the custody of the Incumbent Incharge or officer, who will
personally supervise the insertion or withdrawal of specimen signature slips.
7.1 Specimen Signatures – Facility of Honouring Cheques with Facsimile
Signatures
7.1.1 Bank has introduced the facility of honouring the cheques of our corporate
clients with facsimile signatures. The facility shall be extended as per the following
guidelines:
(a) The facility shall be extended in fully KYC Compliant account of reputed
Corporate Customers only after exercising due diligence.
(b) Under the scheme, the authorised Corporate Customer would be permitted to
issue cheques with Facsimile Signatures, subject to monetary limit of each cheque
being maximum Rs.1.00 lakh. Accordingly, the Corporate Client shall not issue
single cheque for an amount exceeding Rs. 1.00 lakh.
(c) Branches and Back Offices, as well, receiving physical cheque for processing,
would honour the cheques, up to the value of Rs.1.00 lakh per instrument, issued
with facsimile signatures of Authorised Signatories by those corporate customers
who have been sanctioned the facility by competent authority, if otherwise in order,
as per extant guidelines. [As under Cheque Truncation System (CTS), image of
the cheque is received for processing, this part of guidelines would not be
applicable for Back Offices processing Debit Clearing under CTS].
(d) Circle Head would be the Competent Authority to sanction allowing of the facility
of issuing cheques with Facsimile Signatures. The eligible customers, desirous of
availing said facility, shall apply in writing to their base branch (account maintaining
branch), which would recommend the case to Circle Head.
(e) The facility shall be extended subject to the following terms and conditions:
(i) The Applicant Corporate Customer shall arrange for the necessary
equipment and software etc. at their end to ensure process of issuance of a
cheque bearing facsimile signatures. The bank would not be liable for any
damage, claim, action and proceedings etc., arising out of misuse of the process
of issuing cheques bearing facsimile signatures or fraud committed thereof by
officials of the company.
(ii) The Corporate Client, desirous of availing the Facility, shall make request
for availing the Facility through Resolution, passed by the Board of Directors of
the Company, on prescribed format given below.
(iii) The authorised Corporate Client would abide by the terms and conditions
of the scheme stipulated by the bank from time to time and execute an
agreement on prescribed format given below.
(iv) The authorised Corporate Client will inform the bank in respect of change of
authorised signatories and their facsimile signatures well in advance. The party
would be responsible for making necessary changes in their record and system.

In case of any loss due to misuse/ fraudulent use of such authority, the party
would indemnify the bank.
7.1.2 In order to identify the accounts in which the facility of issuing cheques with
facsimile signatures has been allowed, ITD has defined a Keyword, ‘FACSI’ (for
facsimile signature). While uploading signatures in CBS System through Menu
Option ‘IMGMNT’, the Keyword, ‘FACSI’ would be entered in the ‘Keyword Field’,
followed by ‘Facsimile signature is permitted for this account’ in ‘Text Field’.
7.1.3 At the time of invoking signatures, the Keyword, ‘FACSI’ would be

displayed by ‘System’ to the User, against each row.
FORMAT FOR CORPORATE RESOLUTION – AUTHROISATION

FACSIMILE SIGNATURE
……………………. The undersigned of…………………………………………… (address)
certifies that he is the Secretary/Director of…………………………………….(Company),
a company incorporated under the laws of…………………………………………..(State)
having its principal/registered office
at…………………………………………………….(address) and that the following is a true
copy of a resolution duly adopted by the Board of Directors of a Company at a meeting
held by them on…………………………(date) where a quorum was present.
Resolved that Punjab National Bank having its Head Office at 7 Bhikhaiji Cama Place,
New Delhi is hereby authorized to honour cheques for the payment of money drawn in
the name of ……………………………..Company bearing the facsimile signature of
any/jointly (please specify whether account is to be operated jointly by authorized
signatory or singly) of the following persons :
………………………..
Punjab National Bank is authorized and entitled to honour the cheques bearing
facsimile signature(s) regardless of how or by whom the facsimile signature(s) was/were
affixed, if the signature(s) resembles a facsimile filed with Punjab National Bank.
Further Resolved that the………………………..(President, Vice President, Secretary,
Treasurer or any other official) of the Company is authorized to enter into facsimile
signature agreement with Punjab National Bank on behalf of this company.
FURTHER RESOLVED. This authorization is in addition to any other authorization in
effect that shall remain in effect until Punjab National Bank receives written notice of its
revocation.
The undersigned certifies that there is no provision in the articles of incorporation or the
bylaws of the company limiting the power of the board of directors to pass the resolution
described above and that the resolution is in conformity with the provisions of the
articles of incorporation and the bylaws and this resolution has not been rescinded or
modified.
SECRETARY/DIRECTOR OF THE COMPANY

DATE –
PLACE –

Format for Agreement
(To be stamped as an Agreement)
FACSIMILE SIGNATURE AGREEMENT
This agreement is executed at…………………..on this………….day of……………… by
and between ……………………………incorporated under the Companies Act 1956
having its corporate office at …………………………..(hereinafter referred to as the
Company which shall include its successors and assigns) and Punjab National Bank, a
body corporate constituted under Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 having its Head Office at 7 Bhikhaiji Cama Place, New Delhi
and its branch office at…………………(hereinafter referred to as ‘The Bank’ which term
shall include its successors and assigns).
The Company is maintaining a current account No……….. with BO………….
Whereas due to the large number of cheques to be issued by the Company in the
above account for day to day business needs, the Company has installed a system,
with the help of which, the facsimile signature(s) of the authorized signatory(ies) of the
account can be affixed on the cheques.
WHEREAS the Company has assured the Bank that the system installed in the
Company for generating the facsimile signature(s) on the cheques are reliable and
secure one.
WHEREAS the Company has approached the Bank for honouring the cheques bearing
facsimile signature of its authorized signatory on its presentment, which request has
been accepted by the Bank subject to the following terms and conditions:
NOW THIS AGREEMENT WITNESSETH AS UNDER:
1. The company agrees that the bank may honour cheques drawn on company’s above
mentioned account when the cheque bear or appear to bear the facsimile signature of
the authorized signatory(ies) of the company. It is further agree that bank may honour
the cheques regardless of by whom or by what means the actual or purported facsimile
signature has been made, provided the facsimile signature resembles the signature of
the facsimile specimen which the company has filed with the bank.
2. That the Company shall ensure proper, secure custody of the system and the cheque
books provided by the Bank in respect of the account. Company shall take all security
measures required for generating facsimile signature(s) to ensure that the accuracy,
completeness, authenticity and security of the system is not tampered or breached.
3. That the specimen signature as generated from the system of the authorized
signatory(s) of the Company will be provided to the Bank.
4. Any change in the system of generating the cheques bearing facsimile signature and
of authorized signatory will be advised in writing to the Bank well in advance and duly
acknowledged by the bank. Bank will not be responsible in the event of failure or delay

by the Company in furnishing timely or correct information of the changes or
modifications of its authorized signatories to Bank alongwith documents as may be
reasonably required by the Bank from time to time and on account of cheques honoured
by the bank bearing signature of the authorized signatory(ies) as per record of the bank.
Further irrespective of any such change of authorized signatories any cheque written
prior to the intimation in writing to the Bank and bearing signatures of such authorized
signatory shall be deemed to be a valid mandate for payment of the cheque from the
Company and any payment made thereto give valid discharge to the Bank.
5. The Company agrees and confirms that honouring of cheques bearing facsimile
signature by the bank or its agent will give valid and legal discharge to it and shall be
fully binding on the Company.
6. The Company agrees and confirms that any security breach, unauthorized use or any
other such reasons thereof shall not be a ground for repudiating the payment made by
the bank by honouring such cheque.
7. The Company agrees that for any acts of negligence, errors, omissions and
commissions which may include double printing, unauthorized printing, fraud and
forgery on the part of the Company, its employees or agents in the course of availing
the Facility or at any time thereafter shall be the Company’s sole responsibility and the
Bank shall not be responsible and liable in any manner whatsoever for honouring the
cheques.
8. The Company hereby agrees that pursuant to availing this facility the Company shall
not hold the Bank liable or responsible for any, losses, damages, costs, charges and
expenses which the Company may suffer for Misuse of the Cheques, system,
mishandling of any cheque by the Company or any of its employees, directors,
representatives or agents, the breach of any one or more of the Terms and Conditions
of this agreement, any fraud, malfeasance, misfeasance committed by the employees /
representatives / agents of the Company.
9. The company agrees to hold bank harmless and indemnify bank from and against
any and all loss, cost or expenses resulting from acting upon any such authorization
which the bank reasonably believes to have come from the company.
10. The Bank reserves the right to terminate or suspend the Facility, in whole or in part
forthwith, at any time without assigning any reason by giving notice to the Company.
11. The company agrees to abide by rules, regulations or guidelines issued by the
bank/RBI from time to time with respect to availing such facility and maintaining of the
current account with the bank.
IN WITNESS WHEREOF the parties thereto have set and subscribed their hands the
day……………………..of………………..first here in above written.
WITNESSES - COMPANY
BANK

8. SIGNATURE SCANNING, STORAGE & RETRIEVAL SYSTEM
(i) Scanning should be done on daily basis for new accounts

(ii) The authorized officer will verify the signatures on line and ensure
scanning of signatures of all accounts. Every deletion and modification should be
verified by authorized officer.
(iii) Signature should be scanned as per Customer ID
(iv) Scanning of signatures should be restricted to System Administrator/
authorized officer. The scanned signatures should also be authorized in the
system by an authorized officer other than System Administrator.
(v) More than one signature of the customer should be captured from the four
specimen signatures given on the signature slip.
(vi) Scanned signatures should be very clear.
(vii) Description for the signature field should be used for noting down any
specific instructions, e.g. “these signatures are valid for amount below ten lacs”,
joint signatures or any two etc.
(viii) Irrelevant areas should not be scanned.
(ix) Inoperative account signatures shall be classified separately and access
to such signatures would be controlled. The general user will not be able to see
the signatures of inoperative accounts. The right to view signature of inoperative
account is restricted to authorized officer. The transactions relating to inoperative
accounts should be in accordance with guidelines of the bank.
9. VIEWING OF SIGNATURE
a) The signatures scanned as per Customer ID can be viewed from any account
opened under any scheme for that particular Customer ID by entering the account
number.
10. TRANSFER OF ACCOUNTS
10.1 General
a) During the currency of a deposit account, the account holder shall be at liberty to get
his account transferred to a branch at a place convenient to him. Transfer of account
shall be free of any transaction fee.
b) The Account Holder (all account holders in case of account in joint names) may
tender an ‘application for transfer of account’ (‘Application’) written on blank paper. The
request may be submitted at the account maintaining branch (transferor branch) or at
the branch where account is desired to be transferred (transferee branch). The Account
Holder would be requested to record on the ‘Application’, his/her old address as well the
new address in complete, along with his/her Mobile No. / Telephone No.

c) The dealing official would verify the signatures of the account holder/s on the
‘Application’ with the specimen of signatures uploaded in the ‘System’ and append
certificate in this regard under his / her full signatures with GBPA No.
d) The dealing official would enquire from the customer of having issued cheque/s in the
account which have not yet been presented for payment. If there be any, customer
would be advised to wait for the presentment of the cheque/s or give an undertaking
that Bank shall not be liable for dishonor of cheque as a consequent to transfer of
account.
e) On satisfying about the genuineness of the request, account holder would be asked
to surrender the unused cheque leaves in his/her possession. The number of blank
cheque leaves and the printed serial number of these cheques would be got recorded
on the ‘Application’ under signature of all the account holders.
f) The blank cheque leaves surrendered by the Account Holder shall be verified by the
authorized official with the record in the related account in ‘System’. In case of any
mismatch, an enquiry would be made with the Account Holder to the satisfaction of the
dealing Official.
10.2 Where Application is tendered at Transferor Branch

a) Where ‘Application’ is tendered at the ‘Transferor Branch’, the cheque numbers
tendered as blank would be destroyed, recorded in the Register meant for the purpose
and would also be destroyed in the ‘System’. Thereafter, the account would be
transferred procedurally to the Transferee Branch by using the Menu Option
‘ACXFRSOL’.
b) The related account opening form (in original), specimen signature slip; standing
instructions, along with any other documents (having bearing on operation of the
account) and the relative nomination forms would be forwarded to the ‘Transferee
Branch’ through Speed Post.
c) In case of customer of repute, if Account holder so desires, account transfer letter
may be handed over to him along with all the relative papers i.e. account opening form,
specimen signatures slip, standing instructions etc. in a sealed cover for delivery to the
transferee branch. In such cases, account transfer letter should be prepared in
quadruplicate, one copy will be delivered to the customer, in a sealed cover, second
copy should be supplied to the customer, for his reference, third copy would be sent
through Speed Post to the transferee branch, and the last copy would be retained for
office record. On receipt of copy through ‘Post’, the transferee branch will check the
particulars, with the copy received directly through the customer. In case of any
discrepancy, the matter should be urgently taken up with the transferring office and
meantime, suitable measures taken to guard against unauthorized transactions.
10.3 Where Application is tendered at Transferee Branch
(a) Where ‘Application’ is tendered by the Account Holder at the ‘Transferee Branch’,
the KYC formalities required to be completed at transferee branch would be completed.

Thereafter, the authorized official would physically destroy the blank cheque leaves
surrendered by the customer and record in the Register meant for the purpose.
(b) The details of the Application received & action taken at the ‘Transferee Branch’
shall be entered in CBS by invoking Menu Option ‘ACTF’. On verification of the
details, as entered by the SWO, by the Authorised Official, System would
generate a unique ‘Lead Number’ which shall be recorded on the ‘Application’ for
future reference and follow up by the ‘Transferee Branch’.
(c) A Report for the ‘Transferor Branch’ has been customized in CBS under the Menu
Option ‘CTRPT’. The Data Base Administrator (DBA) at the ‘Transferor Branch’ shall
generate the Report as a part of ‘Day Begin’ activity and handover the same to the
dealing official.
(d) The dealing official would invoke the Menu Option ‘ACTF’, satisfy (with reference to
the ‘Lead Number’ as entered in the Report), with the details as entered by the
‘Transferee Branch’. In case it is decided to transfer the account, the cheque numbers
destroyed at the ‘Transferee Branch’ would be destroyed in ‘System’ and account would
be transferred through Menu Option ‘ACXFRSOL’. The status of transfer of account
would be changed from ‘Pending’ to ‘Transferred’ by invoking Menu Option ‘ACTF’. The
Report referred to in Para (c) above, shall be vouched with the debit voucher
(e) The related account opening form (in original), specimen signature slip; standing
instructions, along with any other documents (having bearing on operation of the
account) and the relative nomination forms would be forwarded to the ‘Transferee
Branch’, under cover of PNB 48 through Speed Post. Care must be taken that all
relative standing instructions are passed on to the ‘Transferee Branch’ for compliance
after confirmation from the customer.
(f) The account holder shall be informed about transfer of his / her / their account.
(g) The ‘Transferee Branch’ shall monitor and follow up on an on-going basis the status
of all requests for transfer of account received at theirs. Where status of the account is
changed to ‘Transferred’, the Authorised Official shall ensure that the account has been
transferred and follow up for receipt of the Account Opening Form and other documents
from the Transferor Branch.
(h) On receipt of the related documents, account holder shall be advised to visit the
branch for taking cheque book and new passbook for the account.
(i) The branch, where application for transfer of account has been submitted, will
ensure that the account is operationalised within 2 weeks subject to the
condition that the customer has fulfilled KYC obligations required at
transferee Branch. However, KYC formalities, already complied with at
previous branch, such as introduction, photo, identification proof, Copy of
PAN etc. shall not be insisted upon by transferee branch. Mobile number and
email address of the customer at the new place shall be invariably obtained
and fed in the system.

11. Closing of Account within 14 days of its opening
a) In case of newly opened saving / current account, if a customer desires so, he may
request, on a plain paper, to switch to another account or else to close his account
citing the reasons to do so, within 14 days of first transaction in the account.
b) The Incumbent Incharge, on receipt of request, shall facilitate switching to other

account or refund of amount along with the interest earned if any.
c) No charges shall be levied for providing the facility of switching / closure of account.
However, the Incumbent Incharge should make efforts to retain the account by offering
various products.
d) If a depositor closes his account, after trial period of 14 days but within 12 months of
its opening, the prescribed charges shall be recovered.
12 NOMINATION
12.1 ACCEPTANCE OF NOMINATIONS FOR BANK DEPOSITS, ARTICLES IN

SAFE CUSTODY AND SAFE DEPOSIT LOCKERS
a) The Banking Regulation Act, 1949 was amended by Banking Laws (Amendment)
Act, 1983 by introducing new Sections 45ZA to 45ZF, which provide, inter alia, for the
following matters:
(i) To enable a banking company to make payment to the nominee of a deceased

depositor, the amount standing to the credit of the depositor.
(ii) To enable a banking company to return the articles left by a deceased person
in its safe custody to his nominee, after making an inventory of the articles in the
prescribed manner.
(iii) To enable a banking company to release the contents of a safety locker to
the nominee of the hirer of such locker, in the event of the death of the hirer, after
making an inventory of the contents of the safety locker in the prescribed
manner.
a i) The Central Government framed, in consultation with the Reserve Bank of India,
the Banking Companies (Nomination) Rules, 1985. These Rules, together with the
provision of new Sections 45ZA to 45ZF of the Banking Regulation Act, 1949 regarding
nomination facilities were brought into force with effect from 1985.
The Banking Companies (Nomination) Rules, 1985 provide for:-
(i) Nomination Forms for deposit accounts, articles kept in safe custody and
contents of safety lockers.
(ii) Forms for cancellation and variation of the nominations.

(iii) Registration of Nominations and cancellation and variation of nominations,
and
(iv) Matters related to the above.
b) Deceased Customers’ Accounts are required to be handled with care and
caution. At the same time there is an imperative need to avoid inconvenience and
undue hardship to legal heirs. To avoid procedural difficulties involved in the
disposal of claim cases in the absence of nomination, the existing as well as
prospective customers must be encouraged to make nominations in their deposit
accounts, for articles kept in safe custody and safe deposit vaults (Lockers). All
required guidance on ‘nomination’ and its benefits should be provided to the
deposit account holder/locker hirers of the bank, as per guidelines issued by the
bank from time to time.
b (i) As per delegation of powers, the Branch Manager / Officer In charge of the
Section has full powers to sanction the payment of deposit / delivery / release of the
articles kept in safe custody / locker, on the basis of nomination, to the nominee.
b (ii) The payment of the balance in the deposit account to the nominee of a deceased
deposit account holder represents a valid discharge of the bank's liability provided :
- Due care and caution has been exercised in establishing the identity of the
survivor(s) / nominee and the fact of death of the account holder, through appropriate
documentary evidence;
- There is no order from the competent court restraining the bank from making the
payment from the account of the deceased; and
- It has been made clear to the survivor(s) / nominee that he would be receiving
the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e.,
such payment to him shall not affect the right or claim which any person may have
against the survivor(s) / nominee to whom the payment is made.
b (iii) It may be noted that since payment made to the survivor(s) / nominee, subject to
the foregoing conditions, would constitute a full discharge of the bank's liability,
insistence on production of legal representation is superfluous and unwarranted and
only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and
would, therefore, invite serious supervisory disapproval. Accordingly, production of
succession certificate, letter of administration or probate etc. or obtaining of indemnity or
surety from the nominee, irrespective of the amount standing to the credit of the
deceased account holder should not be insisted upon.
b (iv) The Bank is to obtain a death certificate or any other proof of death acceptable to
the bank. The bank has to establish nominee’s identity before dealing with nominee.
Nominee should be asked to fill up claim format (PNB 831) for establishing his identity,
duly certified by:-
Magistrate of judicial officer or
An officer of central or state govt. or

A bank officer or
Two reputed persons acceptable to the bank.
Letter of request from the nominee (PNB – 831) and death certificate produced should
be kept on record. Unused cheque leaves issued in the account would be destroyed &
recorded in the System as per procedure in this regard. Payment of balance with up to
date interest shall be made to the nominee by closing the deceased depositor’s
account. Related pass book shall be updated and handed over to the nominee with
remarks, ‘Account Closed by settlement of claim and payment made to Shri / Ms ____,
Nominee’.
b (v) It should be made clear to the nominee that payment is made to him only as a
trustee of the legal heirs/legatee(s) of the deceased account holder i.e. such payment
given to him shall not affect the right or claim which any person may have for that
money.
INCUMBENTS ARE ADVISED NOT TO GRANT LOAN TO NOMINEE ON DEPOSITS

OF THE DECEASED.
c) Nomination facility is intended for individuals including a sole proprietary concern.

The nomination can be made only in respect of a deposit, which is held in the individual
capacity of the depositor(s) and not in any representative capacity as the holder of an
office or otherwise. However, nomination facility is also available in respect of deposit
accounts held in the name of a sole proprietorship concern.
d) Nomination is a rule, rather than an exception. It should generally be insisted that

all the existing as well as prospective account holders make nomination in their deposit
accounts, for articles kept in safe custody and safe deposit vaults (lockers), whether
held in single name or jointly with other individual/s.
e) Making nomination / cancellation of nomination / variation in nomination require

one witness (two witnesses in case the account holder / locker hirer put his / her thumb
impression). It is to be noted that the signatures of the accountholders are not to be
attested by witnesses. The witness is required as a testimony that the Nomination Form
was filled and signed in his / her presence on the date and place mentioned in the
Form. The signatures of the depositor/s are not to be attested by the witness. The
signatures of the account holder are rather to be verified by the Authorized Official to
place on record that the nomination has been made by the depositor only. Making
nomination / cancellation of nomination / variation in nomination must be signed by all
the account holders.
f) When a prospective customer is opening an account, the introducer can sign the
witness column also. However, in case the account is being opened on the basis of
Passport, Postal Identification Card or Identity Card of Armed Forces etc., nomination
can be witnessed by Bank official(s) also.
g) Nomination can be made in favour of individuals and therefore, a Nominee

cannot be Association, Trust, Society or any other organization or any office-bearer

thereof in his / her official capacity. Any nomination other than in favour of an individual
will not be valid nomination.
h) The nomination can be made in favour of only one individual, irrespective of the
fact that the account is in joint name. (In case of lockers, where two or more individuals
hire the safety locker jointly, nomination can be made in favour of one or more persons,
i.e. each locker hirer can nominate same individual or different individuals as nominee)
i) Where the nominee is a minor, the depositor, or all the depositors together, shall,
while making the nomination, appoint another individual, not being a minor, to receive
the amount of the deposit on behalf of the nominee in the event of the death of the
depositor or, as the case may be, all the depositors during the minority of the nominee.
j) Variation / cancellation of a subsisting nomination by all the surviving depositor(s)

acting together may be allowed. This is also applicable to deposits having operating
instructions ‘either or survivor’. In the case of a joint deposit account, the nominee’s
right arises only after the death of all the depositors.
k) Where the customer himself prefers not to avail the facility of nomination, the fact
of his / her refusal for availing Nomination facility would be recorded in the Account
Opening Form(AOF) (relevant option available in the AOF). The customer would be
explained the advantages of nomination facility. If he / she still chooses not to make a
nomination, he / she will be asked to give letter to this effect.
l) In case the customer does not make nomination and also declines to give a letter
to this effect, the branch will record the fact on AOF as under:
“The advantages of making nomination were explained to the customer.

However, he / she neither made nomination nor agreed to record refusal.
Signatures
Date:_________ Name_________
GBPA No.______”
m) Under no circumstances, opening of account will be refused on the ground that

the person opening the account refused to make any nomination.
n) Notice Boards/posters as under must be displayed in the branches:

“Nomination facility available for –
- Deposits
- Safe Custody
- Safe Deposit Vault
Please make use of the facility.
For details, please contact the Manager.”
o) Nomination facility is also available for Savings Bank Account opened for credit
of pension. Banking Companies (Nomination) Rules, 1985 are distinct from the Arrears

of Pension (Nomination) Rules, 1983 and nomination exercised by the pensioner under
the latter rules for receipt of arrears of pension will not be valid for the purpose of
deposit accounts held by the pensioners with banks for which a separate nomination is
necessary in terms of the Banking Companies (Nomination) Rules, 1985 in case a
pensioner desires to avail of nomination facility.
p) The relevant rules relating to nomination in a deposit made in the name of a

minor are as under:
i. As per Banking Companies (Nomination) Rules, 1985, in respect of deposit

accounts in the name of minor, nomination shall be made by a person lawfully
entitled to act on behalf of minor.
ii. Opening of account by the minor of the age 10 years & above cannot be
extended to mean that he can be allowed to register nomination.
iii. The person ‘Lawfully entitled to act on behalf of minor has to be looked into
as per faith / religion to which the minor is subject.
iv. In all cases, the guardian appointed by Court are persons lawfully entitled to
act on behalf of minor.
v. If minor is Hindu, Buddhist, Jain or Sikh by religion, Natural guardian or
guardian appointed by ‘Will’ can make nomination.
vi. If minor is Muslim by religion, following category of persons can nominate on
behalf of minor:
A. The father,
B. Executor appointed by father’s ‘Will’,
C. Father’s father
D. Executor appointed by ‘Will’ of father’s father.
vii. If minor is Christian by religion, his / her father or mother can make
nomination for minor.
viii. For other religions, the matter is to be examined on case to case basis.
ix. On minor’s attaining majority, he / she can register fresh nomination.
q) A nomination, cancellation of nomination or variation of nomination may be made

as aforesaid at any time during which the deposit is held by the Branch to the credit of
the depositor or depositors, as the case may be. A nomination or cancellation of
nomination or variation of nomination does not cease to be in force merely by reason of
the renewal of the deposit.
r) The nomination in deposit accounts shall be made in Form DA-1. The
cancellation of the said nomination to be made by the depositor or as the case may be,
all the depositors together shall be in Form DA-2. A variation of the said nomination to

be made by the depositor or, as the case may be, all the depositors together, shall be in
Form DA-3.
s) The branch shall acknowledge in writing to the concerned depositor(s)
registration of nomination or cancellation or variation thereof, in respect of a deposit.
Such acknowledgement should be given to all the customers irrespective of
whether the same is not demanded by the customers. The related forms shall be
preserved annexed to the Account Opening Forms in the Era-file
t) The relevant duly completed Form of nomination or cancellation of nomination or
variation of nomination filed with the branch shall be registered in the books/records of
the branch.
u) A nomination or cancellation of nomination or variation of nomination shall not
cease to be in force merely by reason of the renewal of the deposit.
v) Branch must put a rubber stamp on the pass book/Term deposit receipt
indicating "Nomination Registered". However, name of the nominee should not be
disclosed.
w) Reserve Bank of India has further advised that in addition to the legend
“Nomination Registered”, banks should also indicate the name of the Nominee in
the Pass Books / Statement of Accounts / FDRs, in case the customer is
agreeable to the same.
i. Whenever there is a request for making Nomination / Variation in the Name of

Nominee in a Deposit Account, the Depositor would be asked about his intentions
for disclosing the name of Nominee Name on the Pass Book / Acknowledgement
of Fixed Deposit.
ii. Where Depositor intends that the Name of Nominee be disclosed on the Pass
Book / Acknowledgement of Fixed Deposit, a letter to this effect would be
received and filed with the relevant Nomination Form / AOF, as the case may be.
Thumb impression of the illiterate depositor on the letter shall require witness by
two persons.
iii. In case of Fixed Deposits, necessary functionalities have been customized in CBS
Application. The user has to modify the customers’ account through menu option:
“ACM”, where following three columns would be displayed:
Nomination Available?
Print Nominee Name?
Print Receipt?
The users are required to make “Y” in the second option field (Print Nominee
Name?), and then the name of Nominee will be printed on the face of the FDR. If
the same is kept as “N” in the second option field (Print Nominee Name?), then
the name of the Nominee will not be printed, but the registration number of the
nominee will be printed on the face of the Acknowledgement of Deposit.

iv. In case of Savings Fund Accounts, the legend “Nomination Registered” is
presently being printed by the CBS Application.
x) The nomination facility is also available in respect of deposit accounts held

in the name of a sole proprietorship concern. For this purpose ,in the first line of
form DA 1, the sole proprietor after mentioning name, will also mention Sole
Proprietor of__________(firm) and will sign and state I, --------sole proprietor of ----
-------(firm).
y) Details of different forms prescribed for registering nominations, cancellation or

variation thereof relating to Articles in Safe Custody and in respect of safe Deposit
Lockers are detailed in the respective chapters.
z) The various forms prescribed for acceptance/ cancellation/ variation in
Nomination have been allotted permanent form numbers under PNB series and are
supplied by Printing & Stationery Department under Form Number PNB-819-A to 819-C;
820-A to 820-C; and 821-A to 821-E.
12.2 REGISTRATION OF NOMINATION.
a) The nomination details be captured by the SWO in the system. The SWO should:
i) Enter all particulars of nominee as per AOF in the relative account
ii) Modify the nomination after seeking prior permission of authorized official
iii) Generate the report & register as per format given below:
Sr.No Account Account holder’s A/c Nominee’s Remarks
No. Name & Address opening Name
Date
The authorized officer will:
i) Verify all the particulars of nomination in the register/system with AOF
ii) Ensure maintenance of record & its preservation as per guidelines
b) The under noted registers should be maintained

i) Register for acceptance of nomination in Deposit Accounts (PNB 825);
and
ii) Register for acceptance of nomination relating to articles in safe
custody/safe deposit vault (lockers) PNB 826.
c) In respect of deposit accounts separate register/separate openings in one

Register, on the basis of individual branch's requirements may be used for each type of
account viz. SF, CA, RD & FD etc.
d) In case of transfer/closure of accounts, surrender of lockers or cancellation/

variation of nomination, appropriate noting under proper authentication, must be made
in the remarks column of the registers/ keyed in computers. Care should be taken that,
in case of change of nomination the new serial number at which the same is recorded is

mentioned in the remarks column of the existing (old) serial number with appropriate
noting. Similarly the old serial number should also be recorded in the remarks column of
the new serial number at which the changed nomination is noted.
e) The forms relating to nominations made by depositors/ lessees should be kept in
the chronological order of records maintained in the registers (PNB 825, 826). As and
when any variation/cancellation of nomination is made, the fresh forms be taken from
the depositor/ lessee and filed with the old forms after making appropriate noting, under
proper authentication, on the old form.
f) However, in case of closure of accounts or surrender of locker, the relative
nomination form should be filed with the AOF whereas in case of transfer of accounts
the form(s) should be sent to the concerned branch along with other papers.
13. In new accounts where PNB 819-A (DA-1) has been incorporated in the AOFs,
no separate 'Nomination Form' shall be taken and 'Nomination shall be got accepted on
the format incorporated in AOF. Accordingly, the need for keeping 'Nomination Form' in
Era-file (as aforesaid) shall not arise in that case. Also at the time of subsequent
cancellation/ variation appropriate noting shall be made in the space provided in the
AOF for recording Nomination and the related forms i.e. PNB 819-B and 819-C as the
case may be, shall be filed in the Era-file. The related noting of any change shall also be
made in the nomination register / computer records.
14. In the event of death of a depositor/lessee (in case of SDV) reference may be
made to the Register (PNB 825 or 826) and the file in which nomination papers are
kept, with a view to ascertaining whether any nomination has been made in respect of
that account/locker (SDV). If so, an entry be made in the ledger sheet, in bold letters, in
red ink / computer records, under proper authentication, indicating that the
depositor/lessee has expired and nominee is ......... (giving the date of death and source
of information about the death of the depositor/lessee, name address etc. of nominee).
It should be ensured that the above registers /file(s) are treated as important items of
records to be kept under dual custody.
15. In order to ensure that the amount of deposit, articles left in safe custody and
contents of lockers are returned to the genuine nominee, the claim form (PNB 831) is
required to be taken besides observing other procedural instructions and safeguards.
16. In respect of articles kept in safe custody, the refusal may be recorded in the
'Application for deposit of articles in safe custody' (PNB-156) by incorporating the clause
‘"I do not wish to make nomination in this account". In case of Locker, refusal may be
recorded separately by obtaining a letter from the lessee(s) as under:
The Manager,
Date:___________
Punjab National Bank,
B.O_______________
Sir,
Reg: My/Our Locker No :_________________

I/We, am/are holding the above locker in your branch.
I/We do not wish to make nomination in respect of articles kept in the above locker.
Yours faithfully.
Witness______________ ............…………
Place_____________ (Signatures of all the locker holders)
17. In deposit accounts and articles kept in safe custody and contents of lockers,
when nomination is appropriately made as prescribed, branch should pay deposit,
return articles in safe custody / give access to the locker and liberty to remove its
contents, to the nominee on completing prescribed procedure.
18. It may be noted that payment/delivery of articles to nominee is not to be treated
as claim case. The nominee by operation of law is entitled to the deposits/ articles kept
in safe custody/contents of lockers. The facility of nomination contemplates quick
payment/delivery on completing prescribed procedure.
19. Branch Manager/Officer Incharge of the section has full powers to sanction the
payment of deposit/delivery of the articles kept in safe custody/contents of lockers, on
the basis of nomination to the nominee.
20. Withdrawal Form
Withdrawal form does not have the features of a cheque and may pose certain
problems if withdrawal form is allowed for payment at CBS branches other than the
base branch. Accordingly, cash payments through withdrawal forms are permitted only
at the branch where the customer maintains the account and not at other branch. The
clause, “Usable at Base Branch only” is printed on the face of the withdrawal slip.
i) The stock / custody of withdrawal slip must remain with supervisory staff only. It
should be issued to the Account Holder on his/her demand. In no case should
withdrawal slips be left in the banking hall, outside the counter. While handing over the
Withdrawal Slip to the Account Holder, supervisory staff should affix the dater rubber
stamp on withdrawal slip.This is to counter check that the slips have been made
available from branch counter.
ii) The payment of Withdrawal slip with dater stamp be made by the Single Window
Operator, within his prescribed passing power with other usual safeguards.
iii) For payments beyond the power of Single Window Operator, The SWO will enter the
same in the computer and issue the Token to the Account Holder. Payment beyond Rs
50000/- be permitted by the incumbent and it should be ensured by the dealing officer
that withdrawal slip reaches the cashier only through the person authorised for this
purpose and in no case it be handed over to the Account Holder for delivery to the
cashier.
Cashier while making the payment to the Account Holder must :

(a) Obtain the Withdrawal slip along with pass book from the authorised person only.
(b) Verify the genuineness of the Token.
(c) Check the transaction in CBS, before making the payment to the Account Holder.
iv). Withdrawal slips should be printed with respective branch name and distinctive
number and printing should be centralized at Printing and Stationery Department
only.The withdrawal slips should be printed centrally keeping in view the number of
withdrawals made at the branch through CBS without any specific request from branch,
once in 6 months. The same should be printed and dispatched to the branches
proactively by HO: Printing and Stationery Department.
Cash payment against tender of Withdrawal Slip shall not be permitted to third party,
even if the same is accompanied with pass book.
v)To provide relief to the sick pensioners ,old, infirm and account holders who are nable
to come to the bank personally for withdrawing cash through withdrawal slip, guidelines
given in this chapter may be followed.
vi) On presentment of Withdrawal Slip by the account holder personally, he/she may be
permitted withdrawal of unlimited amount, subject to observance of usual safeguards,
viz. production of pass book, verification of signatures, availability of balance etc.
vii) Depositors must produce their passbooks, when withdrawing money from their
accounts, by a withdrawal slip. Such instruments without production of the pass book,
must be referred to the Manager, who may permit such withdrawals only in very
exceptional circumstances, provided he is personally satisfied, that there is no risk in
doing so. While exercising such authority, Manager must satisfy himself about the
genuineness of the mandate and will record the reasons for allowing the payment on
the back of the withdrawal slip itself. Manager will be held personally liable if it
transpires subsequently that payment through withdrawal slip was wrongly made.
viii) A notice as per below shall be displayed at conspicuous place in the branch:
“All our Savings Fund Account holders are requested to note that cash
payment against tender of withdrawal form shall be permitted as under:
I. Payment against tender of Withdrawal Form shall be permitted at ‘Base

Branch’ only to the concerned account holder and it must be accompanied
with pass book of related account.
II. No payment shall be allowed to third party against tender of withdrawal

form.
III “Account Holders are requested to bring their pass book for cash
payment against withdrawal slip in their a/c to avoid any inconvenience.
The withdrawal slip shall be issued by the supervisory staff on demand.”

21. DRAWING OF CHEQUES
The customers should be advised as under:
(i) Cheques and Drafts, etc. tendered for collection and credit to an account
should not be drawn against until these have been actually realised. The bank
reserves the right to refuse payment against uncleared effects even though credit
there of may have been afforded in the pass book.
(ii) Branches would display following notice at conspicuous place in the
banking-hall:
“Bank shall only honour or pay the cheques of the customers against
clear balance up to the previous day and having regard to the
drawals of the day already made in the account”.
(iii) The bank will not be held responsible, in the event of cheques being
dishonoured for having been drawn against cover in course of realization.
(iv) The bank will take every precaution to see that funds paid in for credit to
accounts are correctly recorded in the respective accounts; but in case any
cheque is returned by the bank inadvertently, it will not be held liable for any
damage arising there-from.
(v) Cheques must be drawn on the bank's printed forms out of the cheque
book supplied to the constituents for the purpose. The bank reserves the right to
refuse payment of any cheque drawn otherwise.
(vi) For cheques drawn for a sum less than Rs.50/-, a charge of Rs. 20/- per
cheque be levied in non-individual accounts.
(vii) Constituents should not overdraw their accounts without having made
previous arrangements.
(viii) Cheques should be drawn in such a way as to prevent subsequent
additions or insertions and the signatures thereon should be in strict conformity
with the specimen signatures supplied to the bank.
(ix) The bank reserves the right to refuse payment of cheques that have been
altered in any way, unless the alteration is authenticated under full signatures of
the drawer.
(x) No extraneous matter should appear on the cheque otherwise it may be
dishonoured.
(xi) The bank will not be responsible if any post-dated cheque, i.e. bearing a
date subsequent to the date of its presentment, be inadvertently paid.

(xii) Stale cheques, i.e. bearing a date over three months old to the date of
presentation, will not be paid.
(xiii) Constituents should see that the cheque books received by them bear
their prescribed covers and that the serial number of cheque forms indicated on
those covers is intact. Cheque books should be kept under lock and key and the
constituents should not allow other persons to use cheques from their books.
(xiv) In the event of closing an account, the unused cheque forms should be
returned to the bank.
22. CHEQUE BOOK
22.1 Types of Cheque books
a) In Centralized Banking Solution (CBS), data is stored centrally at Data Center,

Delhi at ITD-HO and is accessed by the branches in the CBS network (Service Out Lets
– SOL) for providing various services to the customers. Under the CBS environment,
the customer has the option to operate his/her account from any CBS – service outlet all
over the country.
b) With a view to extend quality service, Bank has introduced “CTS-2010 compliant
cheques” which are payable at any of our branches / back offices.
c) Bank will have only one type of Chequebook i.e. CTS cheque books. The word
CTS-2010 is written along with the name of the printer placed vertical on left hand side
of cheque. In CTS-2010 Compliant Cheque, date field is in 8 cages. Name & Logo of
the Bank with branch name and RTGS/NEFT/IFS code are placed on top left side.
Pantograph in grey-black colour with hidden/embedded word “VOID” just below the
account field on the left hand side corner in the size of 1x2 cms. These cheques would
bear complete 9 digit branch specific sort code (City, Bank and Branch MICR Code
printed on MICR Line of the cheque).
All branches would maintain sufficient stock of CTS-2010 cheque –books only,
for issuing to their customers. Chequebook would be issued in customers’
accounts after ensuring that 16 digit complete account number is legibly written/
stamped on every cheque leaf
d) Branches would request the customers to bring in the branch, the unused
‘Non-multicity Chequebook’ in their possession, to get the Multicity Chequebook
issued in their account. The ‘Non-multicity Chequebook’, so surrendered shall be
destroyed as per procedure. The ‘Multicity Chequebook’ with generic code
(‘000024000’), already issued in Customers’ Accounts would continue to be valid
and honoured on presentment as per extant guidelines on payment of cheques.
e) Printing and Stationery Department would supply only the ‘Multicity

Chequebook’, with Name and Distinctive Number of branch printed thereon.

f) Stock of ‘Multicity Chequebook’ without Name and Distinctive No. of branch
printed thereon (chequebooks with generic code ‘000024000’) has to be destroyed
as per laid down procedures, viz;
(i) Before destruction, the stock of Cheque-books should be
physically verified with the entries recorded in the Security Forms
Register and the ‘Inventory’ in CBS, under certificate to this effect
on the Security Form Register and on the computer printout. The
related printouts should be filed in an era file. Any shortage or
other discrepancy, which may be found, must be brought to the
notice of the Circle Office, Printing and Stationery Department
and Fraud prevention and investigation Section at Head Office,
immediately.
(ii) Cheque-books meant for destruction, will be burnt in the presence

of the both the joint custodians. The date and mode of destruction
will be recorded in the old record register, as well as in the
register used for listing records, meant for destruction, under
certificate of the Officers concerned, in both the aforesaid
registers.
(iii) Branches and other offices falling under the jurisdiction of Circle
Offices would submit certificate of destruction of stock of Non
CTS cheque books and ‘Multicity Chequebook’ without Name and
Distinctive No. of branch printed there on (chequebooks with
generic code ‘000024000’) to their Circle Office. The exercise of
obtaining CTS cheque books from Printing & Stationery
Department and destroying of NON CTS cheque books should
be completed by 31.07.2017 and thereafter only CTS
CHEQUE BOOKS be issued to customers in all branches.
(iv) Similar certificate would be submitted by the joint custodians at
Circle Offices / Head Office Departments / Divisions / ZAOs to
their respective Circle / Divisional Head / ZAO Incharge.
(v) After 31.07.2017 all Circle Offices should send a confirmation to

us that only CTS cheque books are available in all branches
of the Circle for issuance to customer and Non-CTS cheque
books have been destroyed.
g) Cheque-books of smaller size (containing 10 leaves) would be available for

requisition and supply to branches by Printing and Stationery Department, HO. These
cheque-books would be used by branches for issuing to those customers, who have
smaller need of cheques and also for issuing the cheque-books in customers’ accounts

where fresh cheque-book is requisitioned by customers through their authorised
representatives.
h) All branches would place their indent to Printing and Stationery Department,
HO, for supply of various sizes of CTS-2010 compliant cheque -books, depending
upon the requirements of the branch. Old cheque books /(Non CTS will not be
issued to customers.
22.2 ISSUE OF CHEQUE BOOK

In our Bank all Cheque Books Personalised or Non-personalised are supplied by
Printing & Stationery Department, Noida. Since April, 2011 our bank is issuing CTS-
2010 compliant cheque books to the branches.
General Instructions
(a) No branch shall issue cheque book in an account maintained at other branch.
(b) After account opening and verification, the cheque book can be issued to the
customer. Complete 16 digit account number must be written at designated place on all
the cheque leaves issued to the account holder.
(c) It would be ensured that cheque books are delivered over the counters on
request to the depositor or his authorized representative, after observing the system
and procedures in this regard. Instances of refusing the customers or their authorized
representatives from collection of cheque books at the counters and insisting on
dispatching the same by courier to them, after obtaining an undertaking from them that
the dispatch of cheque books by the Bank / its courier would be at the customers’ risk
and consequences and that the customers shall not hold the Bank liable in any manner,
whatsoever, in respect of such dispatch of cheque books, shall be viewed seriously.
(d) The stock of cheque books must be kept in the custody of two officers, one of
whom must be an Assistant Manager and, in his absence, an officer. The Branch will
maintain the inventory (stock of Security form) into the system by loading the details.
(e) The data relating to cheque book issued should be fed into the system and be
checked by an authorized officer and a printout is taken. This print out should be
compared with physical security, signed by the checking officer and preserved.
(f) Cheque Book issue Register is to be maintained manually, as it requires

customers signatures. However the cheque book details in computer be printed every
month and checked with the register maintained manually to ensure that no
unauthorized data has been entered in the system. Cheque book should not be issued
without acknowledging the letter of thanks sent to depositors.
(g) Cheque books are not to be issued in accounts which are not properly KYC
compliant

(h) Branches would issue CTS-2010 cheque books having the name of the printer
placed vertical on left hand side of cheque. In CTS-2010 Compliant Cheque, date field
is in 8 cages. Name & Logo of the Bank with branch name and RTGS/NEFT/IFS code
are placed on top left side. Pantograph in grey-black colour with hidden / embedded
word “VOID” just below the account field on the left hand side corner in the size of
1x2cms, to customers of ‘Parent Sol’. Accordingly, no cheque book would be issued by
a branch in a customer’s account, maintained in other branch of the Bank.
(i) Indian Banks' Association has desired that due care should be exercised over
issue of Cheque Books to account-holders. The history of returning of cheques should
be verified while considering request for issue of fresh Cheque Books, so that the
incidence of cheque returns is reduced.
(j) A possibility of customer utilizing anywhere Banking facility offered by the bank to
enrich themselves by chennalising funds to third parties on commission basis had come
up for review at the legal department of Reserve Bank of India, who after examining the
issue advised as under:
“Using Anywhere / Any branch banking, cheques for bona fide remittance by
the account holders is permitted but making money by using banking
channels for such remittances by way of issue of Anywhere Branch Banking
cheques appears to be objectionable. “
(k) While issuing Multi-city cheques to the customers, they must be advised that
these cheques should be used by them only for bonafide remittances and not for
making money / profits by conducting commission agency business or
otherwise. The accounts of the customers utilizing CTS-2010 cheques should also be
monitored to check that the facility is not utilized for transactions other than bonafide
remittance by the customers.
(l) The account holders, who do not keep sufficient balance in their accounts and
whose cheques are frequently returned due to insufficiency of funds, should be
identified and properly noted by the concerned officials. A Plain Register should be
maintained in which the account number and the name of such account-holder/s should
be entered and the same should be initialled by the officials issuing cheque book.
Cheque book should be issued to such account holders only under the authority
of Incumbent incharge (in case of ELBs/VLBs under the authority of Sr.
Manager/Manager) after proper inquiry, so as to discourage them from issuing
the cheques without providing for sufficient funds.
(m) The compliance of the guidelines should under no circumstances affect the
efficient service in issuance of cheque books to genuine and bonafide customers.
(n) While entertaining the requisition of fresh cheque book in customer’s account,
official concerned would verify the extent of usage of earlier cheque books, do due
diligence on transaction history /behavior of account and satisfy himself about the need
of current request. Similar caution should also be exercised while entering in system

customer’s request for issuance of personalized cheque book, wherever applicable. In
case the Official concerned is not satisfied with the usage of the earlier cheque book
issued in the account or not satisfied with the conduct of account, he would refer the
matter to Incumbent Incharge for seeking his orders, who on merits of each case would
take decision on issue of fresh cheque book in the account and accord his approval, as
the case may be, with reasons, under his signature.
(o) In normal course of operations, the customers are provided small number of
cheques at a time, the quantity of leaves varying between 10 to 20 in case of Savings
fund and 25 to 100 in case of current/cash credit/overdraft accounts. However, some
public sector undertakings / corporate customers are allowed large number of cheques
in view of their requirement for smooth operations. The requisition of chequebooks
should be dealt with keeping in view the genuine short-term business requirement.
(p) Bank also permits issuance of higher number of cheques (fixed number) to the
customers for depositing the post-dated cheques with financial institutions/ banks for
repayment of loans. Request for issue of bulk cheque-books would be entertained
only in the accounts which are more than one year old and are conducted
satisfactorily. In such cases, a confirmation be also obtained from the concerned
bank/FI about receipt of post dated cheques or alternatively the customer should submit
a duly acknowledged copy of letter addressed to the Bank/ Financial Institution,
mentioning deposit of such post dated cheques with bank/FI concerned.
(q) Every leaf of the cheque-book issued in a newly opened account would be
branded with a stamp ‘New Account’.
(r) Before parting with the custody of chequebook issued in customer

account, authorised official must ensure that;
i. The cheque-book is issued by invoking relevant Menu Option in CBS

(presently ‘ICHB’) and verified by the Authorised Official through Menu Option
‘ICHBAU’.
ii. Signatures of all the authorized signatories are uploaded and verified in the
system.
iii. 16 digit account number is clearly mentioned on all the cheque leaves.
iv. Chequebook has Branch Name and Distinctive Number printed thereon.
(s) A Board with the following notice (both in Hindi and English) should be suitably
displayed to educate the customers:
“Customers are requested to;
a) VERIFY THAT ALL CHEQUE LEAVES IN THEIR POSSESSION BEAR THE

COMPLETE 16-DIGIT ACCOUNT NUMBER AND IN CASE IT IS NOT SO, THE
COMPLETE ACCOUNT NUMBER BE IMMEDIATELY GOT FILLED UP FROM
THE BRANCH

b) COUNT THE LEAVES CONTAINED IN THE CHEQUEBOOK ISSUED TO
THEM, BEFORE LEAVING THE BRANCH PREMISES”
Procedure for issuing cheques

(a) Presently, cheques are issued to customers at base branch in the following
ways:
i. Customer personally visits the base branch (i.e. at Branch, where customer has
opened his account)
ii. Representative of the customer visits the base branch, with latter’s authority
letter for issuance of cheques.
iii. Customer sends his/her requisition to the base branch for sending the
chequebook by post.
iv. Request for issue of cheques is received through internet banking.
(b) The issue of cheque books will be under the charge of an authorised official, who
will keep a small supply of such books in his personal custody for current use in a
locked box. He would ensure that the name of the printer placed vertical on left hand
side of cheque. In CTS-2010 Compliant Cheque, date field is in 8 cages. Name & Logo
of the Bank with branch name and RTGS/NEFT/IFS code are placed on top left side.
Pantograph in grey-black colour with hidden/embedded word “VOID” just below the
account field on the left hand side corner in the size of 1x2 cmsare printed on each leaf
of the cheque book by the Printing & Stationery Deptt. When a cheque book is issued,
the date of issue and name of the customer will be entered in the security forms register
(form no. PNB-126) and the entry will be initialed by the official concerned. The
recipient's signatures (or despatcher’s initials for books sent by post or by bank’s
messenger) will be taken in the appropriate column. Care should be exercised that the
name of customers are not marked on the cover of cheque books issued to them.
c) The Branch Manager or the authorised official should exercise precaution and
vigilance at the time of passing orders for issuance of cheque book/duplicate pass book
on the basis of letter of request. He may call for the Account Opening Form or
information available in the system and interview the presenter briefly (in case he does
not know him personally) so as to eliminate the chances of cheque book/ pass book
falling in wrong hands. Questions like, when was the account opened or how many
years back it was opened, what were the last one or two major withdrawals/deposits
into the account etc. may be asked. Further, signatures and address on the letter of
request may be obtained in the presence of the officer authorising issuance of cheque
book or duplicate pass book (where the account holder himself comes personally to the
branch)
(d) Personal interview would afford an opportunity to know the customer personally
and would instill confidence that the Bank cares for him. Of-course, interview is to be
conducted informally and with a personal touch without offending the account holder.

(e) Request for issue of cheques may be either on Requisition Slip provided by the
Bank or on a Plain paper.
ISSUE OF CHEQUES ON THE BASIS OF APPLICATION ON PLAIN PAPER
i) Bonafides of the person presenting the application should be ascertained

by proper enquiry/identification and Cheques should be issued, only on the
orders of Incumbent Incharge / 2 nd man, who should fully satisfy himself about
authenticity of the request. After ensuring authenticity of the request, cheques
may be issued on counter, only if the customer himself receives the cheques. In
case an application on plain paper is presented by a person other than the
account holder, cheques should be sent by Registered A.D. post, only at the
address available in bank’s records after proper verification.
ISSUE OF CHEQUES ON THE BASIS OF REQUISITION SLIPS
i) New chequebook would ordinarily be issued only against written

application by the customer on Bank's prescribed requisition-slip. One of these
slips is bound in each chequebook and bears the numbers of the first and last
cheques therein, along with its date of issue and the account number of the
customer. Before the chequebook is issued, the requisition slip must be carefully
examined to see that it is out of the customer's ‘current lot of cheques’ by
verifying the signature of authorized official on the previous requisition slip. Date
of issue, 16 digit account number and the cheque numbers will be written on new
requisition slip being issued with chequebook. This requisition slip will be signed
by authorised official by putting his complete signature alongwith GBPA number.
The number of the new cheque book issued and the date of its issue will be
marked on the requisition slip received, under the initials of the official issuing the
cheque book, who will keep such slips in a separate file in his custody.
ii) Utmost care should be exercised to identify the depositor while issuing
cheques. The authorised official would verify the signature of the persons
authorised to operate the account and that the previous chequebook is almost
exhausted. To facilitate the branches to ascertain the estimated unused cheques
still lying with the customer, ITD-CBS have since customized functionality in CBS
Application whereby ‘System’ would display the following message, both at
the time of issuing and verifying the cheque book:
“NUMBER OF UNUSED CHEQUE LEAVES IN THE ACCOUNT ____ARE___”
The alert message will be shown by the system in both the menu options i.e.
a) ICHB – option meant for issuing cheque book, manually at the branch
level.
b) CBSCHQBK – option for centralized cheque book request.
iii) Whenever a request for fresh cheques is received from an account holder
on a requisition slip, which does not belong to the lot of cheques issued to him

earlier, the concerned official should be put on alert to ascertain and enquire as
to how the presented requisition slip happened to be in possession of the
tenderer. On being satisfied with the genuineness of the transaction, new
chequebook may be issued and handed over the counter only if the request is
made personally by the account holder. Where requisition is received through the
messenger (authorised representative), the chequebook must be sent by
Registered post to the customer, at the address as recorded in the books of the
bank.
iv) When a requisition slip is presented by a messenger (authorised

representative), cheques should be issued only if he is known to the bank.
On satisfying that the chequebook may be issued to the messenger
(authorised representative), chequebook of smaller size (containing 10
cheque leaves) would be issued. Branches which are covered under the
centralised personalised cheque book system, non personalised cheque books
of 10 leaves should be issued only to meet emergent needs of customer where
request for supply of personalised cheque book already entered in the system is
pending delivery.
v) Wherever chequebook is sent by post, it should be despatched under

Registered, Acknowledgement Due, cover.
vi) Whenever cheques are issued to a messenger (authorised representative)
or when the cheques are sent by Registered Post, customer's acknowledgement
of having received the chequebook must be secured. The system of seeking
acknowledgement serves two purposes, namely;
(a) Intimating the account holder that the chequebook has been issued as per
his/her request,
(b) Ensures that the chequebook has been received by the persons entitled to its
rightful custody.
The acknowledgement is sought by sending PNB 119 to the account holder.

PNB-119 also contains a form of acknowledgement for the customer's signature.
vii) The customer would be advised on form No. PNB-119, through bank’s
messenger or through post (in no case through the messenger of the account
holder, who takes delivery of the cheque book), that bank has issued
chequebook to his / her messenger (authorised representative) and requested to
acknowledge receipt of the issued chequebook on the acknowledgement form
available as a perforated part of PNB-119. Where form No. PNB-119 is required
to be sent by post, it should be posted under postal certificate.
viii) With a view to facilitating receipt of acknowledgement from the account

holder, while sending PNB-119 to the account-holder, a self-addressed stamped
envelop should also be enclosed to enable the account-holder to promptly
despatch the acknowledgement to the Bank. Account holder would also be given

option to Fax the duly signed acknowledgement on PNB-119, followed by the
original, as its confirmatory copy.
ix) Cheque books sent through bank’s messenger must be accompanied by
form No. PNB-119, on which customer's receipt must be obtained. A separate
delivery book be maintained for this purpose.
x) The signature of the customer on acknowledgement must be verified by a
checking official and the acknowledgement be marked against the relative entry
in the Security Forms Register and in relevant field in CBS, before these are filed
in a separate file, which will be kept in the custody of the official concerned.
xi) Authorised Official would also follow up with the customer over telephone
(number on record of the branch) to ascertain that he / she has received the
chequebook issued to his / her authorised representative. A record of the
response received would be made on the chequebook issue register and in
relevant field in CBS and confirmation of telephonic talks would be sent through
Regd. Post.
xii) When an acknowledgement for cheques is not received promptly,
particular attention should be paid to the signature and name of the payee on the
first cheque presented from the lot of cheques so issued. An urgent reminder
should also be sent to the customer and all efforts should be made to obtain the
acknowledgement. If the efforts so put in produce no result and circumstances
are suspicious, further steps should be taken to safeguard bank’s interest.
xiii) If the request on requisition slip or plain paper is received by post, after
verification of the signature, procedure as explained above will be followed.
Request received through Internet Banking

i) Customer can also request issue of cheques through internet banking.
Such request will be dealt at base branch only. On receipt of request at base
branch:
(a) Printout of the request will be taken.
(b) This will be signed in full by authorized officer.
(c) Cheques will be issued as per request.
(d) In cheque book issue register, “request through internet-sent by
post” will be mentioned in the appropriate column meant for recipient’s
signature. Despatcher's signature will be obtained in Cheque Book Issue
Register, against this entry.
(e) Form -119 will be sent for acknowledgement from the customer.
(f) Concerned request will be filed, as done for other requests.
ii) Cheques will be despatched by ‘registered AD’ post, only at the address
available in Bank’s Records.

23 ISSUE OF LOOSE CHEQUE
a. At times, customers call at the bank personally for a loose cheque form to be utilised
by them for drawing on their accounts. A written request should be obtained from
customer for the purpose. A separate cheque book will be kept by the official
incharge of cheque books for this purpose, all cheques issued be entered on a
separate page in the security forms register, in which the acknowledgments of the
recipients must be taken. The names of the parties, to whom cheques are thus
issued, will be entered on the relative counterfoils / transaction sheet.
b. The issue of loose cheque leaves to Bank employees and customers should
be discouraged as a matter of course. Loose cheque should be issued only to
account holders by authorised officer after ascertaining the genuineness of
the need for the same.
24 OTHER PRECAUTIONS/SAFEGUARDS IN THE MATTER OF CHEQUE

BOOKS.
a) Cheque book issued to the customer requires acknowledgement. If the customer,
in person visits the branch, the acknowledgement should be obtained on cheque-book
issue register. However, if cheque-book is issued to third party and acknowledgement is
not recorded, acknowledgement should be obtained from account holder and the same
be marked in cheque book issue register.
b) Any report of theft of cheque book received, should be marked in the system so
as 'Not to allow any debit unless depositor comes personally and is properly identified.
c) While issuing a new cheque book, the depositor should be advised to ensure that
the serial numbers of cheque forms, as indicated on the covers, are intact and bear the
name of the branch, cheque books should be kept under lock and key and other
persons should not be allowed to have an access to the cheque book.
d) No cheque book will be issued to an illiterate and minor customer.
e) Marking of cheque as 'Good for payment' should not be resorted to under any
circumstances, whatsoever. In case such a cheque has to be returned on presentation
due to insufficiency of funds or any such other reason, it may have serious legal
implications.
f) Customers should be requested to return their unused cheque forms along with
its requisition slip, before their accounts are closed or transferred to another office of the
bank.
g) On return of unused cheques and requisition slip, the printed number of unused
cheques will be marked as destroyed in the system and such cheques and requisition
slips will be destroyed by the authorised official, after counting the leaves.
h) In no case the first lot of cheques issued in newly opened accounts be delivered
to a person, other than the depositor himself.

i) Immediate cognizance of any report regarding misplacement / theft of cheques
should be taken and caution be marked in the system.
j) It should be ensured that operations in the account justify the issuance of further
cheques. This, however, should not be construed as a restriction on issue of the
chequebooks. In case operations in the account do not warrant issue of more cheques,
the concerned official should satisfy himself about the requirement for further cheques.
k) Payment of cheques at branches other than base branch will be possible, only if
signatures of the customers are uploaded in the system. Therefore, all CBS branches
must ensure that all specimen signatures are uploaded in the system immediately at the
time of opening of accounts, to avoid any complaints from the customers.
25 Cheque-book facility to the visually impaired customers
Considering the fact that the blind persons / persons with low vision are legally
competent to contract, issuance of chequebook / cheque leaves may be permitted to
the visually impaired customers, as under:
25.1 Issue of Cheque-book
(a) Accounts of visually impaired customers who can sign consistently
Where the Incumbent Incharge is satisfied about the capacity of the visually
impaired customer with regard to satisfactory conduct of his / her account and
that he / she signs consistently, he / she may be allowed to use chequebook /
cheque leaves. Where chequebook / cheque leaves is / are issued, the same
should be marked with ordinary crossing and the word ‘bearer’ substituted with
‘order’ so that the payees could be traced.
(b) Accounts of visually impaired customers who use thumb impression or
cannot sign consistently
The visually impaired customers, who put their thumb impression or cannot
sign consistently, may also be allowed to open Saving / Current / Overdraft
Account with cheque facility. However, the use of cheque facility will be limited
for issuance of cheques in favour of the specified payees for repayment of
retail loans, payment of utility bills, etc. On request, the cheque facility may
also be provided in the existing accounts of visually impaired persons for the
above-mentioned purposes. The procedure to be followed will be as under:
For cheques favouring financial institutions
(i) A letter of request (as per specimen given below), duly witnessed by a literate
person with no visual impairment, as per existing procedures about witnessing, shall be
obtained from the visually impaired customer for issuance of cheques. A photocopy of
the demand / sanction letter issued to the customer by the financial institution
concerned be also obtained and verified / attested from the original one. The said letter
of request along with the copy of demand / sanction letter shall be preserved as per the
extant guidelines on “Record Maintenance”. The ‘requisition slip’ available in the
chequebook shall be detached there from, cancelled and attached with the letter of
request.

REQUEST LETTER FROM THE VISUALLY IMPAIRED PERSON FOR ISSUANCE
OF CHEQUEBOOK / CHEQUE LEAVES
Date: ____________
The Manager,
Punjab National Bank,
BO: _____________
Dear Sir,
Re: Request for issuance of chequebook / cheque leaves – SF / CA / OD
account no. ____________
Please issue me chequebook(s) / cheque leaves containing _______ leaves for the
purpose of repayment of loan availed by me from ____________ (name of the
financial institution) and / or payment of utility bills in favour of :
(i) _______________________________
(ii) _______________________________
Sanction / Demand letter, issued by _____ (name of the financial institution) from
where I have raised loan for the purpose of _________, is attached.
I have been orally explained by you the precautions to be observed by me for safe
custody of the cheque leaves and agree to abide by the same.
I am aware that the cheque facility is being provided to me by the Bank absolutely at
my own risk and responsibility and that the Bank shall not, in any way, be held
responsible / liable for any misuse of the cheque leaves issued to me.
Thanking you,
Yours faithfully,
Signature / thumb impression of the visually impaired person

(Name of the account holder _________________________)
Encl: as above
Witness For office use

Signature ________________________________ Cheque book(s) / leaves from _________ to
Name ___________________________________ ___________(number of leaves ______)
Address _________________________________
________________________________________
issued on ___________
Telephone / Mobile no. __________________
Signature of the authorized official
(ii) Before handing over the cheques to the visually impaired persons, name
of the financial institution, dates (post-dates) and amount of instalment, both in
words and figures (as mentioned in the demand / sanction letter), shall be filled
in the cheques. It should be ensured that only as many post-dated cheques are

issued as are demanded by the financial institution concerned towards
repayment of the loan amount, as mentioned in the demand / sanction letter.
Each cheque should be crossed with ordinary crossing and the word ‘bearer’
substituted with ‘order’.
(iii) At the time of issuance of cheques, the customer will also affix his / her
left / right thumb impression, as the case may be, on each cheque leaf and the
same should be verified by the Bank’s authorized official under his / her full
signature, with date and GBPA / specific PA number.
(iv) The cheques will be handed over against the customer’s proper receipt,
witnessed by the person who witnessed his request for issuance of cheques.
For payment of utility bills, etc.
(i) On the specific request of the account holder, a few cheques in favour of
each utility providing organization / corporation (e.g. electricity / telephone /
water department) may be issued and the same procedure, as in the case of
cheques issued in favour of financial institutions (as mentioned in (i) above),
should be followed for issuance of such cheques. However, date and amount
shall be left blank which shall be filled in by the visually impaired person
(account holder) at the time of issuance of cheque to the beneficiary.
25.2 Procedure to be followed by the paying branch at the time of making

payment
(i) On presentment of cheques for payment at the issuing branch or any
branch, the passing official would verify the signature of the attesting official
who verified the thumb impression while issuing the cheques and pass the
cheque if otherwise in order.
(ii) It may be noted that (i) by issuance of cheque leaves or verification
of signature (thumb impression) thereon, the Bank does not undertake
any liability to pay the cheque. The payment of cheque depends upon the
balance available in the account and its apparent tenor when presented,
and (ii) post-dated cheques (having regard to due dates of repayment of
loan amount) can be presented any time after that date until the same
become stale. Further, verification of the signature (thumb impression) is
done only to facilitate its acceptance especially in view of physical
handicap of the customer. Non-presence of the official, who verified the
signature at the branch or his / her ceasing to be in service on the date of
presentment of cheque, does not matter.
25.3 Cash withdrawal by visually impaired customers

As hitherto, the visually impaired customer shall come in person in the branch
where his / her account is opened (regardless of the fact whether it is CBS or
non-CBS) for withdrawal of cash from his / her account. Cash payment to a
visually impaired customer, however, should always be made in the presence
of a witness, who should also sign as such. The amount withdrawn should be
confirmed to the visually impaired customer orally.
26. Inter-SOL transactions in Customers’ Accounts
(i) Under CBS Environment, transaction in an account can be committed at any of

our branches / back offices spread across the Country. All the branches are termed
as SOLs. Branch where account is maintained is referred to as ‘Parent SOL’ and
other branches are called the ‘Service SOLs’.
(ii) To facilitate transactions, bank has introduced ‘Multicity Cheque’. The multicity
cheque can be paid from any of the branches in CBS network across the counter.
26.1 Cash Payment in Customers’ Accounts at Service SOL (Branches should

refer guidelines issued from time to time by Integrated Risk Management
Division, HO for inter-SOL transactions in borrowal accounts,)
26.1.1 In order to give benefit of inter-SOL facility for genuine and needful purposes to
the customers and also to put in place checks and balances to discourage misuse for
fraudulent / money laundering and fund diversion purposes, following restrictions are
placed on cash payment in deposit accounts at a branch other than the ‘Parent SOL’:
(A) Tender of Withdrawal Form:
Cash Payment against tender of withdrawal form would not be made, even if the
withdrawal form is tendered by the account holder with passbook.
(B) Tender of Cheque out of the chequebook issued in the account:
(B.1) Account holders (including staff) will be allowed Inter-sol cash payment up to Rs
5.00 (five) lakh, per transaction, as under:
(i) In respect of accounts in the name of individual(s), proprietorship
concerns, transaction to be allowed to the account holder against cheque drawn
favouring self.
(ii) In respect of Ltd. Companies, Govt Agencies, HUF and similar
organizations, transaction to be allowed against cheque drawn in favour of their
representative, whose identity should be explicit.
(In case customers, for bonafide business requirement, desire higher amount of
inter-sol cash payments at selected branches, Circle Head may permit such
higher limit to be utilized at specified branches, on case to case basis, under
intimation to such specified branches and the concerned Circle Office under
whose jurisdiction the branch/es so specified falls. The Circle Office and the

branches so specified will keep a record of all such authorization letters, for
future reference.)
26.1.2 Branches would display following notice at a conspicuous place in the branch:
“Notice is hereby given to all the customers of the Bank that to safeguard their
interest, Single cash payment transaction in deposit accounts at Non Parent
SOL or Non Base Branch or other than Base branch, is restricted to Rs 5 lakh
against self-drawn cheques. Cash Payment to third party would be allowed at
other than the base Branch only in accounts where mobile number is recorded
in the account and is enabled for receiving SMS alerts, as detailed here under:”
-In Saving accounts upto Rs. 50000/- in a day.-
-In current accounts upto Rs.100000/- in a day.
26.2 Transfer Transactions
26.2.1 Debit transfer transaction in a customer’s account can be initiated on the basis of
mandate received through a cheque drawn out of the cheque book issued in the
account or though an authority letter from the account holder.
26.2.2 The Transfer Vouchers are meant for branch use only and are not an
instrument for use by the customers for carrying out the transactions in their
accounts. In case of authority letter, the signatures on the letter would be verified from
the specimen signatures on the record of the branch and after satisfying about the
genuineness of the authority from the customer, a Transfer Debit Voucher, quoting the
date of the letter and number, if any, is prepared and signed by a checking official. The
letter, after dealing with the instructions, would be filed with the related voucher.
26.2.3 The Inter-SOL transfer transaction /3rd party payment would be permitted
as under:
(A) Transaction on the basis of cheque

A.1 Such transactions involve two transactions, one in the account of the drawer of
the cheque and the other one in the account of the ‘Payee’ / ‘Endorsee’ of the cheque’.
A.2 These transaction would be entered either at the Drawer’s Account SOL or
at the ‘Payee’s Account SOL only. Thus the ‘Remote SOL’ (SOL which is not
maintaining account of the Drawer and the Payee / Endorsee, both) is not
ordinarily permitted to enter the transaction. . However, the remote SOL which is not
maintaining accounts of the drawer and the payee/endorsee may permit transactions
after DUE DILIGENCE in accounts where mobile number is recorded in the
account and is enabled for receiving SMS alerts, as detailed hereunder:

i) In Savings Fund Accounts:
-3rd party cash payments up to a maximum of Rs.50,000/- per day. Aggregate of all
inter-SOL cash payment transactions on a single day shall be ascertained by the branch
making the payment.
–Transfer Transactions up to a maximum of Rs.1,00,000/- per day. Aggregate of all

inter-SOL transfer debits on a single day shall be ascertained by the branch making the
transactions.
ii) In Current Accounts:
-3rd party cash payments up to a maximum of Rs.1,00,000/- per day. Aggregate of all
inter-SOL cash payment transactions on a single day shall be ascertained by the branch
making the payment.
–Transfer Transactions up to a maximum of Rs.2,00,000/-. Aggregate of all inter-SOL

transfer debits on a single day shall be ascertained by the branch making the
transactions
A.3 Incumbent Incharge of the Remote SOL would be competent to take a

decision after observing the stipulated safeguards, systems and procedure and after
exercising DUE DILIGENCE and permit such transfer transactions in case customers
for their bonafide business requirement request for the transaction.
(B) Transaction on the basis of Authority Letter
B.1 Ordinarily, in accounts where chequebook is issued, the transaction involving

debiting of one account and crediting of another account is initiated against a cheque
drawn in the account to be debited.
B.2 In cases of accounts where chequebook is not issued and in exceptional cases,
in those accounts where cheque book is issued, the transfer transaction may be
requested through an Authority Letter.
B.3 Where authority letter is presented, the transaction would be processed if;
(i) Such authority letter is presented by the authorised signatory / one of the
authorised signatories in the account.
(ii) In case of Savings Bank account, authority letter so presented by the
account holder must accompany with the passbook.
(C) These instructions would be applicable in case of accounts in the name of

Staff Members, Single or Joint, also.
26.3 Clearing Transaction

26.3.1 There is no restriction with regard to Clearing Transaction in customers’ account
at any Service SOL.
26.3.2 Hence, a cheque presented in debit clearing by other Bank may be debited at the
Service SOL. Similarly, a customer may deposit at any SOL a cheque drawn on other
bank for collection in his account.
26.3.3 Presenting banks are entering name of banks, dummy values like A/C, Pool
account, etc. instead of name of payee. These irregularities create panic among
customers when they receive message with unknown names of beneficiaries of
instruments which were issued to someone else. Presenting bank will ensure that
correct information, as indicated by issuer on the cheques is keyed in when the
instrument is sent for collection.
26.4 Inter SOL Transactions in Inoperative Accounts
(a) A Savings / Current Account is classified as ‘Inoperative Account’ if there is no

customer-induced transaction in the account for a period of 24 months. These accounts
are maintained separately under separate GL Head. The transactions in an Inoperative
Account should be authorized by the Incumbent-in charge/ authorized officer.
(b) Inter-SOL transactions in an inoperative accounts IS NOT PERMITTED.
(c) Whenever any transaction in Inoperative Account is attempted, ‘System’ will raise
an exception “Customer induced debit tran to inoperative account” and the branch
initiating the inter-SOL transaction would come to know that the account being debited
is an inoperative account of other branch and should not allow transaction/ operation.
(d) Of late it has been noticed that branches at large are creating customer-induced
transactions in Inoperative Accounts without following the laid down procedures for such
accounts. Although such transactions cannot be undertaken on alternate delivery
channel like ATM & internet banking, manual transactions in these accounts without
making them as active accounts is exposing the bank to avoidable risks. As the
customer is able to transact at base branch, it invites complaint against failure at
alternate delivery channel and inter sol transactions.
27. ACCOUNTS NOT PROPERLY CONDUCTED

a) When a customer does not conduct his account properly (e.g. when his cheques
have frequently to be returned for lack of funds, say on three occasions in a quarter)
his attention should be drawn to the fact by issuing a cautionary advice (Specimen as
per Format A) to the customer.
b) If there is no improvement, 2nd cautionary advice (Specimen as per Format ‘B’)
would be issued to the account holder.
c) If there is still no improvement, he should be directed to close his account within
a period of 30 days. (Specimen as per Format – C)

d) If there is neither an improvement in the account nor is the account closed within
the stipulated period, the account would be closed and the balance lying to the credit of
account would be remitted to the account holder through ‘A/c Payee’ Banker Cheque/
Demand Draft, under cover of letter (specimen as per Format ‘D’).
e) The above instructions are applicable to deal with frequent dishonouring
(for want of sufficient balance in the account) of cheques of an amount of less
than Rs 25 lacs.

Format A
SPECIMEN OF ‘CAUTIONARY ADVICE’ TO BE SENT TO THE CUSTOMER IF
CHEQUES HAVE BEEN DISHONOURED ON THREE OCCASIONS IN A QUARTER
DUE TO INSUFFICIENT FUNDS / EXCEEDING ARRANGEMENT

BO ________________
REGISTERED / SPEED POST / HAND DELIVERED
Ref : ______________ Date : _____________
“CAUTIONARY ADVICE”
Sh/Ms/M/s _______________________
________________________________
Dear Sir(s), / Madam,
Re: Your Savings Fund / Current Account No. _____________________ -

Frequent Dishonour of Cheques
1. It is observed that there have been frequent returning of cheques issued on your
above account, due to insufficient funds / exceeding arrangement. During the period
from _____ to _____, there have been following returnings:
Sl. Cheque Date of Amount Name of Payee Date when

No. No. cheque (Rs) dishonoured
i)
ii)
iii)
2. Therefore, we request you to improve upon the conduct of your above account and
maintain financial discipline.
3. Further, we shall be pleased if you could make it convenient to visit our office during
working hours to apprise us with the reasons for these returnings.
Thanking you,
Yours Sincerely,
BRANCH MANAGER

Format ‘B’
SPECIMEN OF 2nd CAUTIONARY ADVICE TO BE SENT TO THE CUSTOMER IF

CHEQUES HAVE BEEN DISHONOURED ON THREE OCCASIONS IN A QUARTER
DUE TO INSUFFICIENT FUNDS / EXCEEDING ARRANGEMENT

BO ________________
Ref : ______________ Date : _____________
“2nd CAUTIONARY ADVICE”
Sh/Ms/M/s _______________________
________________________________
Re: Your Savings Fund / Current Account No. _____________________

- Frequent Dishonour of Cheques
1. Your attention is drawn towards our letter(s) dated _______________ advising you to
improve upon the conduct of your above account, in view of the frequent returning of
cheque on account of insufficient funds / exceeding arrangement.
2. We are sorry to state that no perceptible improvement has been observed and further
retuning of cheques has been noticed from _____ to _____, as under:

i)
ii)
iii)
3. Therefore, we again request you to improve upon the conduct of your above account.
We further inform you that in case no improvement is noticed and returning of cheques
on account of insufficient funds / exceeding arrangement continues for future, no fresh
cheque book may be issued to you and the Bank may even consider closing the above
account. In all such cases, you will be required to make alternate arrangements for
cheques already issued by you. Accordingly, we advise you to desist from issuing any
fresh cheques on above account, without having sufficient funds in it.
4. Further, we again advise you to visit our office during the working hours, to apprise us
of the reasons for the aforesaid returnings.
Thanking you,
Yours faithfully,
BRANCH MANAGER

Format ‘C’
SPECIMEN OF ‘NOTICE’ TO BE SENT TO THE CUSTOMER ADVISING TO

SURRENDER THE UNUSED CHEQUE BOOK AND TO CLOSE THE ACCOUNT

BO ________________
Ref : ______________
Date : _____________
“NOTICE”
Sh/Ms/M/s _______________________
________________________________
Re: Your Savings Fund / Current Account No. ____________________

- Frequent Dishonour of Cheques.
1. Your immediate attention is drawn towards our letter(s) dated _________ and
__________, advising you to improve upon the conduct of your above account in view
of frequent returning of cheques on account of insufficient funds / exceeding
arrangement.
2. We are sorry to state that despite of above detailed communications, no perceptible

improvement has been observed and further retuning of cheques in the captioned
account has been noticed from _____ to _____, as under:

i)
ii)
iii)
3. Therefore, we are now left with no alternative except to advise you to surrender the
unused cheque book and close your above account within 30 days from the date of this
letter.
4. In case the above account is not closed by you within the stipulated period as per
above, bank would be constrained to close your above account without any further
notice, entirely at your cost, risk & responsibility.

5. Further, in such eventuality, you are also required to make alternate arrangements for
the cheques already issued by you and desist from issuing any fresh cheques on above
account.
Thanking you,
Yours faithfully,
BRANCH MANAGER

Format ‘D’
SPECIMEN OF LETTER TO BE SENT TO THE CUSTOMER ADVISING CLOSURE
OF The ACCOUNT
BO ___________________
Ref : ______________
Date : _____________
Sh/Ms/M/s _______________________
________________________________

Re: Your Savings Fund / Current Account No. ____________________
- Frequent Dishonour of Cheques.
1. Your immediate attention is drawn towards our letter(s) dated _____________,

advising you to close your above account within 30 days from the date of the letter and
surrender the unused cheque book.
2. It was further advised that if above account is not closed by you within the given
period, bank would be constrained to close your above account without any further
notice, entirely at your cost, risk & responsibility.
3. It is observed that you neither visited the branch for closure of the above account nor
have you surrendered the unused cheque book, within the given time of 30 days.
4. Accordingly, your above account has been closed today, at your cost, risk and
responsibility.
5. Please find enclosed a Banker’s Cheque / Demand Draft No. _________ dated
_________ for Rs_______, in your favour representing the balance lying to the credit of
the account, including up-to-date interest as per bank rules.
6. As already advised, please make alternate arrangements for the cheque, if any,
already issued by you on the above account.
7. In your own interest, we advise you not to issue any fresh cheque on above account
and surrender / destroy the unused cheque leaves.
Thanking you,
Yours faithfully,
BRANCH MANAGER

28. Frequent dishonoring (for want of sufficient balance in the account) of
cheques of an amount of Rs 25 lakh and above.
a) Branches shall submit the following information to Inspection and Audit Division,
Head Office through their controlling office on quarterly basis relating to cheques
dishonoured for want of sufficient funds:
(i) Cheques drawn in favour of stock exchanges by the stock brokers,
irrespective of amount;
(ii) Cheques for Rs 25 lakh and above drawn by parties / entities other than
the stock brokers; and
(iii) Cheques for Rs 25 lakh and above, dishonoured for want of sufficient
funds, where the payee is a borrower of the Bank.
28.1 PROCEDURE FOR RETURNING OF DISHONOURED CHEQUES
28.1.1 Cheque received from other banks / sister branches in local clearing
(Inward Clearing)
(a) When a cheque is received by a branch in local clearing and dishonoured
by it for some reason, the Incharge of the Section, to whom the cheque relates,
shall ensure that the dishonoured cheque is entered in the Cheque Returned
Register under his full signature. He shall then hand over the dishonoured
cheque along with the duly signed and dated Cheque Returning Memo (PNB
113) giving therein reasons for its dishonour to the Incharge of Clearing Section
against latter’s proper receipt, i.e., against his full signature with date. The
Incharge of Clearing Section shall ensure that the cheque is returned to the
presenting bank on the same day / next day when the clearing house meets for
exchanging the returnings. In any case, he shall ensure that discipline prescribed
for the clearing house in terms of Uniform Regulations and Rules for Bankers’
Clearing Houses is fully complied with.
28.1.2 Cheque received from branch’s own customers or sister branches / other
banks for collection in local clearing (Outward Clearing)
(a) When a branch presents a cheque in clearing either for its own customer
or on behalf of any sister branch / other bank and the cheque is returned unpaid,
it should be returned immediately to the customer / sister branch / bank
concerned.
(b) Branch shall follow the under noted procedure for returning a dishonoured
cheque, as at (a) above, to the customer / sister branch / bank concerned:
(i) The Clearing Section SWO will mark dishonouring of the cheque in the
Outward Clearing Register against the relative entry and hand over the
same to the Incharge who, after verifying the same, shall hand it over to

the Incharge of the Section which deals with the corresponding credit of
the cheque. For example, if the cheque is deposited by a Current Account
holder of the branch, it should be handed over to the Incharge of Current
Account Section and in case the cheque is received from an outstation
sister branch / other bank, it should be handed over to the Incharge of Bills
Section against latter’s proper receipt.
(ii) The Section Incharge concerned shall ensure that the -
(a) Corresponding credit entry of the cheque made while sending it in
clearing is reversed and necessary noting is made against the
relative entry in the IDBC / IDD / LDD register, etc. in case the
cheque has been received from a sister branch / other bank;
(b) Cheque is entered in the Cheque Returned Register; and
(c) Cheque Returning Memo is appended to the dishonoured cheque
in addition to the Cheque Returning Memo of the drawee bank.
(iii) Thereafter, the dishonoured cheque along with the duly signed Cheque
Returning Memo will be handed over to the Incharge of Dispatch Section
against latter’s proper receipt, for returning / dispatching the same to the
customer / collecting sister branch / bank concerned immediately.
28.1.3 Cheque received for in-house collection from branch’s own customers or
from sister branches / other banks
a) When a branch receives a cheque for in-house collection (i.e., a cheque drawn on an
account with the branch itself) from its own customer or from a sister branch / other
bank and the cheque is dishonoured, for whatsoever reason, it should immediately be
returned to the customer or to the sender sister branch / other bank, as the case may
be, along with the Cheque Returning Memo.
b) Branch shall adopt under noted procedure for returning a dishonoured cheque, as at
3.1 above, to the payee / sender outstation branch or the bank concerned:
(i) The SWO concerned will enter particulars of the dishonoured cheque in
the prescribed Cheque Returned Register, append a Cheque Returning Memo to
the cheque, giving reasons of its dishonour and hand over the same to the
Incharge who, after verifying the correctness of the reason for dishonour of the
cheque, shall put his full signature with date on the Cheque Returning Memo as
well as in the Cheque Returned Register. Thereafter, he shall act as under:
(ii) If the dishonoured cheque happens to be deposited by branch’s own
customer, the Incharge shall hand over the same along with Cheque Returning
Memo to the Incharge of the Dispatch Section against latter’s proper receipt, i.e.,
against his full signature with date. The Incharge of Dispatch Section shall
ensure that the dishonoured cheque is returned / dispatched to the customer
immediately.

(iii) If the dishonoured cheque happens to be received from an outstation
branch / bank, the Incharge will hand over the same along with Cheque
Returning Memo to the Incharge of Bills Section (IDBC, IDD, LDD, etc.) against
latter’s proper receipt as described above. The Incharge of Bills Section shall
ensure that necessary noting is made against the relative entry of the
dishonoured cheque in the IDBC / IDD / LDD register, etc. and then hand it over
to the Incharge of Dispatch Section who will act as described above for returning
the cheque to the sender branch / bank.
28.1.4 Outstation cheque sent for collection and received back dishonoured -
Branch’s own customer or any other bank
a) When a cheque sent for collection to an outstation branch / bank is received back
dishonoured, the Incharge of section of ODBC / ODD / BD shall ensure that –
(i) Necessary noting with regard to dishonour of cheque is made in the

ODBC / ODD / BD register etc. against the relative entry;
(ii) The cheque is entered in the Cheque Returned Register; and
(iii) The Bank’s own Cheque Returning Memo, in addition to that of the
drawee bank, is appended to the cheque giving reasons for its dishonour.
b) The Incharge will then hand over the dishonoured cheque along with duly signed
Cheque Returning Memo to the Incharge of Dispatch Section against latter’s proper
receipt, i.e., against his full signature with date for returning / dispatching it to the
customer / collecting bank immediately.
28.1.5 Cheques purchased by the Bank returned unpaid by the drawee bank
a) In terms of Section 138 of Negotiable Instruments Act, it is essential that the
cheques purchased by the Bank and sent for collection are endorsed by the payee /
endorsee in favour of the Bank. In case the instrument is not endorsed in Bank’s
favour, the Bank does not become a holder in due course and as such losses the right
to sue in terms of the said Section.
b) As such, it must be ensured that the instruments (cheques, drafts, pay order,
etc.) that are purchased by the Bank, invariably bear endorsement of the original payee
/ last endorsee, as the case may be, in favour of the Bank so that the Bank becomes a
holder in due course.
28.1.6 Cheques dishonoured for want of funds – Provisions in section 4 of the

Banking Public Financial Institutions and Negotiable Instruments Laws
(Amendment) Act, 1988
a) Branches should return a cheque, which is dishonoured by them for want of

sufficient funds, to the payee / holder / collecting bank or branch with the reason ‘funds
insufficient’ or ‘exceeds arrangement’, mentioning the proper return code.
b) In terms of Section 4 of the Banking Public Financial Institutions and Negotiable
Instruments Laws (Amendment) Act, 1988, it has been provided that where any cheque

drawn by a person on an account maintained by him with a banker for payment of
money from out of that account for discharge in whole or in part of any debt or liability, is
returned by the bank unpaid, because of insufficiency of the amount of money standing
to the credit of the account or it exceeds the amount arranged to be paid from out of that
account, such person shall be deemed to have committed an offence and shall be
punished with imprisonment which may extend to one year or with fine, which may
extend to twice the amount of cheque or with both. These provisions are in force with
effect from 1st April 1989.
c) Incumbents Incharge are required to display suitable notices, at a conspicuous

place in their branches, for information of the customers containing the gist of the
provisions of Section 4 of the Banking Public Financial Institutions and Negotiable
Instruments Laws (Amendment) Act, 1988.
d) With a view to enable the payee to avail benefits of the penal provisions in the
Banking Public Financial Institutions and Negotiable Instruments Laws (Amendment)
Act, it is necessary that the appropriate reasons - ‘funds insufficient’ or ‘exceeds
arrangement’ - be assigned instead of ‘refer to drawer’
e) However, since returning of cheques for insufficiency of funds may have serious
implications, utmost care and caution must be exercised while returning cheques for the
said reason by ensuring that the related account does not have sufficient funds to meet
the amount of the cheque being returned.
28.2 DEALING WITH INCIDENCE OF FREQUENT DISHONOUR OF CHEQUES -

DETERRENT AND PUNITIVE MEASURES
With a view to enforce financial discipline amongst the customers in the matter of
dishonour of cheques for Rs 25 lakh and above for want of sufficient funds / exceeding
arrangement, the branches shall act as under:
(i) Ensure that while issuing a chequebook in newly opened / existing

accounts (Current, Savings Fund, Cash Credit, Overdraft, etc.), the following
narration is printed on the inside of its front cover and in case no such narration
is printed thereon, the same be branded therein with a rubber stamp till new
cheque books with this narration printed thereon are provided to them:
“It is open to the Bank not to issue fresh chequebook in the account
or even to consider closure of account / discontinuance of the credit
facility at its discretion in the event of dishonour of one or more
cheque(s) each for Rs 25 lakh and above for want of sufficient funds
on four occasions in a financial year.”
iii) Display a notice at a conspicuous place in the premises as at a(i) above;
(iv) Ensure to put the under noted narration with a rubber stamp in the terms
and conditions of the various Account Opening Forms including respect of
current and savings fund accounts, and in Cash Credit / Overdraft agreements,

as the case may be, till the same is permanently incorporated in the various
AOFs / agreements :
“It is open to the Bank not to issue fresh chequebook in the account
or even to consider its closure / discontinuance of the credit facility
at its discretion in the event of frequent dishonour of cheques. The
frequency of dishonour and minimum amount of each such
cheque(s) so dishonoured shall be as prescribed by the Bank from
time to time.”
2 The Audit Committee of Board in its meeting held on 25.10.2012 has decided
that:
i) All cases of return of cheques/ NACH (ECS) of Rs.1.00 crore and above for want of
sufficient funds will be monitored at IAD,HO and information along with action taken be
placed before the Audit Committee of Board on quarterly basis, in future.
ii) Cases of return of cheques of Rs.25.00 lacs and above but less than Rs 1.00 crore
will be monitored by the respective FGM’s office (now Zonal Offices)/Circle Heads and
appropriate action in terms of RBI/ Bank’s guidelines be initiated.
28.3 PARTY-WISE RECORD MAINTENANCE OF DISHONOURED CHEQUES

a) In order to ascertain the number of cheques dishonoured (each for Rs 25 lakh
and above in respect of constituents other than stock brokers and irrespective of the
amount relating to the stock brokers drawn in favour of stock exchanges) in a given
financial year, the branches shall record the returning of cheques, as usual, in the
Cheque Returned Register chronologically and also keep a party-wise record of such
cheques on a separate register on the prescribed format. It will not only facilitate in
keeping a watch on the number of cheques that have been returned unpaid for want of
funds in a given account in a financial year but also submitting the statements as per
said formats to their controlling offices.
28.4 INFORMATION ON DISHONOURED CHEQUES – MIS
a) Branches shall submit following statements on quarterly basis, as prescribed

relating to cheques dishonoured for want of sufficient funds to their Circle Office, as the
case may be, by 5th of every month succeeding the quarter to which it relates:
(i) Cheques drawn in favour of stock exchanges by the stock brokers

irrespective of amount;
(ii) Cheques for Rs 25 lakh and above drawn by parties / entities other than
stock brokers; and
(iii) Cheques for Rs 25 lakh and above where the payee is a borrower of the
Bank.
b) Circle Office shall consolidate the information received from the branches
(including VLBs / ELBs) and shall send the same to Inspection and Audit Division, HO

by the 7th of the month succeeding the quarter to which it relates irrespective of amount
for (i) above and for amount of one crore and above for cheques stated in (ii) & (iii)
above and also present status of accounts having frequent/repeated returning reported
in current as well as previous quarter and action taken by Branch/Circle Office.
c) From the point of view of safeguarding the Bank’s interest, the Circle Offices
shall monitor such returnings in terms of the guidelines contained in this circular and
send consolidated reports to our office on the prescribed format giving details of punitive
action / corrective measures taken, both in borrowal and non-borrowal accounts.
d) It may be noted that the information in respect of the cheques drawn by stock
brokers in favour of stock exchanges and returned unpaid due to insufficient funds is
required to be submitted irrespective of the amount. In other cases, the said information
is to be submitted in respect of cheques for Rs 25 lakh and above only.
28.5 AUTHORITY FOR DETERRENT / PUNITIVE ACTION AGAINST DEFAULTING

CUSTOMERS
a) The authority to withhold issuance of a fresh chequebook and exercising

discretion for closing a current / savings fund account, if four or more cheques each for
Rs 25 lakh and above are dishonoured for want of sufficient funds in a given financial
year, shall vest with the Incumbent Incharge of the branch.
However, before exercising powers to close a current / savings fund account, the
Incumbent Incharge shall record his decision with due justification on a prescribed
format and this will form a part of the record of the closed account.
b) In case of Cash Credit / Overdraft accounts, the issue relating to non-issuance of

a fresh chequebook as well as continuation or otherwise of the credit facilities due to
dishonour of cheques each of Rs 25 lakh and above on four occasions during a
financial year on account of “exceeding arrangement” shall be reviewed by an authority
one step higher than the sanctioning authority for a final decision. In case of CMD and
MC sanctions, however, such review may be done by the CMD while in case of Board
sanctions, by the Board.
c) The said review may be done on a prescribed format which shall be submitted by
the branches to the competent authority immediately after dishonour of cheque of Rs 25
lakh and above for the fourth time in a financial year.
28.6 STAFF ACCOUNTABILITY
a) Staff at all operational levels shall be held accountable for delay in

dispatching / returning a dishonoured cheque to the payee / holder / sender
branch or the bank concerned as per the above mentioned system.
28.7 GENERAL
a) Incumbents Incharge should extend full co-operation for the purpose of adducing
evidence to prove the fact of dishonour of cheque on behalf of a complainant (i.e. payee

/ holder of a dishonoured cheque) in any proceeding relating to dishonoured cheque
before a court, consumer forum or any other competent authority and should furnish him
documentary proof of the fact of dishonour of cheques.
b) In all the cases described as above, necessary charges as per the Bank’s rules
shall be recovered whenever a cheque is returned dishonoured. Besides, in case such
a cheque happens to have been purchased / discounted, overdue interest as per the
Bank’s rules shall also be recovered.

SPECIMAN OF CAUTIONARY ADVICE TO BE SENT TO THE CUSTOMER IF
CHEQUES OF RS 25 LAKH AND ABOVE HAVE BEEN DISHONOURED ON THREE
OCCASIONS IN A FINANCIAL YEAR DUE TO INSUFFICIENT FUNDS / EXCEEDING
ARRANGEMENT

(HO 7, Bhikhaiji Cama Place, New Delhi.)
BO ________________
REGISTERED / COURIER / HAND DELIVERED
Ref : ______________
Date : _____________
Sh/Ms/M/s _______________________
________________________________

Re: Dishonour of cheques for Rs 25 lakh and above in your Savings Fund /
Current / Cash Credit / Overdraft Account number ___________________
During the current financial year, following three cheques drawn on your captioned
account have been returned unpaid on account of insufficient funds / exceeding
arrangement:
Sl. Cheque No. Date of Amount Name of Payee Date when
No. cheque (Rs) dishonoured
1.
2.
Please be informed that in case any further cheque for Rs 25 lakh and above is
returned unpaid on account of insufficient funds / exceeding arrangement in this
financial year, no fresh cheque book may be issued to you and the Bank may even
consider closing the above account / discontinuance of credit facilities in the above
account.
We shall be pleased if you could make it convenient to visit our office during working
hours to explain the reasons for these returnings.
Thanking you,
Yours faithfully,
BRANCH MANAGER

BO ____________________
CO----------------------------------
STATEMENT OF CHEQUES FOR RS 25 LAKH AND ABOVE DISHONOURED ON

ACCOUNT OF INSUFFICIENT FUNDS IN BORROWAL / NON- BORROWAL
ACCOUNTS DURING THE QUARTER ENDED _________________
CONSTITUENTS OTHER THAN STOCK BROKERS
Sl. Name of Name of the Nature of Cheque Amount Name Date of Action
No. the constituent account number of of the dishonour taken* in
branch with and date cheque payee of cheque case
number (Rs in cheques
lakh) are
returned
three or
more times
in a
financial
year
AUTHORISED OFFICIAL INCUMBENT INCHARGE
* Advise clear action taken, such as
1 Caution notice given about stoppage of cheque facility likely closure of account /
discontinuance of credit facility
2 Cheque facility stopped
3 Account closed / credit facilities discontinued
4 Account continued with justification for not taking action

BO ……………………….
CO……………………….
STATEMENT OF CHEQUES (IRRESPECTIVE OF AMOUNT) DISHONOURED ON
ACCOUNT OF INSUFFICIENT FUNDS IN BORROWAL / NON- BORROWAL
ACCOUNTS DURING THE QUARTER ENDED _____________
STOCK BROKER CONSTITUENTS
Sl. Name Name of Nature Cheque Amount Name Date of Action

No. of the the of number of of dishonour taken* in
branch constituent account and date cheque payee of cheque case the
with (Rs) Cheques
number are returned
three or

more times
in a
financial
year

1 Caution notice given about stoppage of cheque facility likely closure of account /
discontinuance of credit facility

BO _____________
CO______________
Statement of cheques of Rs 25,00,000/- and above returned for want of sufficient

funds by other branch / bank for the quarter ended __________
Where the PAYEE IS A BORROWER of the Bank
Sr. Branch Name of Limits Status of Limit Amount Reason Action

No. Office the sanctioned account/ Sanctioning of cheque of taken*
payee / (Rs in lakh) Asset Authority and date returning by
borrower classification of Branch
(of the dishonour / RO /
branch) ZO
Fund Non-
based fund
based
1 Caution notice given about

(i) stoppage of cheque facility likely closure of account / discontinuance of credit
facility

(For non-borrowal accounts)
Proforma for Considering Discontinuation of Chequebook Facility And / Or

Closure of Current / Savings Fund Account In Case Cheques For Rs 25 Lakh and
Above are Dishonoured on Account of Insufficient Funds on Four Occasions In a
Financial Year

BO……………………….
1. Name of the constituent
2. Nature of business
3. Nature of account and its number
4. Date of opening of account
5. Conduct of Account during current & last financial year
6. Details of cheques of Rs. 25 lakh and above dishonoured during current financial
year (01.04. - 31.03. ) for want of sufficient funds
Sl. Cheque Date of Amount Name of Date of

7.
No. number cheque (Rs) Payee Dishonour
Comments and recommendations of the Authorized Official / 2nd man of the Section /
branch
Signature
(Name and designation)
Date:
8. Decision of the Appropriate Authority
Signature
(Name of the Appropriate Authority)
Date:
(For borrowal accounts)
PROFORMA FOR CONSIDERING DISCONTINUANCE OF CHEQUE BOOK
FACILITY AND/OR CREDIT FACILITIES IN CASE CHEQUE/S FOR RS 25 LAKH OR
MORE IS/ARE DISHONOURED ON ACCOUNT OF INSUFFICIENT FUNDS ON FOUR
OCCASIONS IN A FINANCIAL YEAR
BRANCH OFFICE:________________________
GIST OF THE PROPOSAL

Quick review of the account to decide continuation or otherwise of (i) cheque book
facility, and (ii) credit facilities due to dishonour of cheque of Rs 25 lakh and above on
account of ‘exceeding arrangement’ on 4 occasions during financial year
___________
1 Name of the borrower
2 Sanctioning authority and date of last
sanction
3 Asset classification
4 Position of account (Rs in lakh)
Nature of Sanctioned Value of Drawing Balance Irregularity,
facility limit security power if any
Fund based
Non-fund based
5 COMMENTS ON THE CONDUCT OF ACCOUNT & OUTSTANDING

SERIOUS INSPECTION IRREGULARITY, IF ANY
6 Key financial indicators Previous year Current financial

year (upto
_______)
Capital
Reserves
Tangible net worth
Net sales
Net profit
Current Ratio
Debt Equity Ratio
7 VALUE OF COLLATERAL SECURITY / NET WORTH OF THE
GUARANTORS
8 DETAILS OF CHEQUES RETURNED (VALUING Rs 25 LAKH AND ABOVE)

DUE TO INSUFFICIENT FUNDS
Cheque number Date Amount Favouring

9 JUSTIFICATION / RECOMMENDATION FOR PROPOSED ACTION (i.e.
Continuation OR discontinuation of credit facilities and cheque book facility)
10 DECISION OF THE COMPETENT AUTHORITY (RM / ZM / GM / ED / CMD /

BOARD)
NOTE
(A) REVIEW OF THE ACCOUNT IN THE ABOVE MENTIONED FORMAT SHALL
BE PUT UP FOR CONSIDERATION TO AN AUTHORITY ONE STEP HIGHER THAN
THE SANCTIONING AUTHORITY
(B) IN CASE OF CMD AND MC SANCTIONS, REVIEW OF THE ACCOUNT SHALL
BE PUT UP TO CMD AND IN CASE OF BOARD SANCTIONS, TO BOARD ITSELF
29. Of late there has been increase in cases of interception of cheques and other
instruments in postal transit and frauds have been perpetrated by miscreants through
stolen cheques collected through newly opened accounts, in fictitious name(s). Strict
observance of laid down guidelines in respect of newly opened deposit accounts is
therefore of utmost importance.
30. Utmost care should be taken while handling the instruments tendered by the
customers for collection as well as received for payment in clearing / collection so that
the same do not get misplaced, for any reason, in the branch premises. The proper
handling of these instruments, as per the guidelines, not only ensures safety of the
same but also helps avoid any sort of harassment to the customers in procuring
duplicate thereof apart from financial / reputational loss to the Bank.
31. In the matter of cheques / instruments lost in transit or clearing process, the
Reserve Bank of India has framed the following guidelines for implementation by the
banks:
(i) In respect of cheques lost in transit or in the clearing process or at the paying
bank’s branch, the bank should immediately bring the same to the notice of the
account holder so that the account holder can inform the drawer to record stop
payment and also take care that other cheques issued by him are not
dishonoured due to non-credit of the amount of the lost cheques / instruments
(ii) The onus of such loss lies with the collecting banker and not the account
holder.

(iii) The banks should reimburse the account holder related expenses for
obtaining duplicate instruments and also interest for reasonable delays occurred
in obtaining the same.
(iv) If the cheque / instrument has been lost at the paying bank’s branch, the
collecting banker should have a right to recover the amount reimbursed to the
customer for the loss of the cheque / instrument from the paying banker.
32. In view of the increase in the amount of the unclaimed deposits with banks and
the inherent risk associated with such deposits, Reserve Bank of India (Cir. No. DBOD.
BC 34 dated 22.08.2008) advised banks to play a more pro-active role in finding the
whereabouts of the account holders whose accounts have remained inoperative.
Moreover, there is a feeling that banks are undeservedly enjoying the unclaimed
deposits while paying no interest on it.
33. INOPERATIVE ACCOUNT (It is clarified that in CBS, Inoperative Accounts

are known as ‘Dormant Accounts’)
(i) Customer Induced Transaction: A transaction in any account is treated as

‘Customer Induced Transaction’ if it has been as a result of mandate from the account
holder.
(ii) In FINACLE Application, the classification of ‘Customer-induced Transaction’ and
‘Bank Induced Transaction’ is as under:
Customer Induced Tran (‘CI’) Bank Induced Tran (‘BI’)

(i) ATM, IBS, RTGS/NEFT-outward (i) QAB Charges
(ii) FD proceeds/FD Interest crediting to
(ii) SB Interest Payment
SB/CA account
(iii) Standing Instructions
(iv) Stop Payment Service charges
(v) Cheque Book charges
(vi) Cash/Transfer/ECS/Clearing - Inward/
Outward
(vii) Dividend on shares
(iii) A Savings Fund as well as a Current Account would be treated as ‘Inoperative

Account’ if there is no ‘Customer Induced Transaction’ for a continuous period of 24
months.
(iv) ‘Inoperative Accounts’ would be segregated from the ‘Operative Accounts’ and
transferred to a separate ledger under General Ledger Head, ‘Inoperative – Others.
(v) Accounts which have been lying as ‘overdue fixed deposit’ for 24 months will be
transferred to the ‘Inoperative – others’ head in the General Ledger.

(vi) An ‘Inoperative Others’ Account would be classified as ‘Inoperative 10 years &
above’ if it continues to be ‘Inoperative Others’ for a period of eight years.
(vii) ‘Inoperative 10 years & above’ accounts would be segregated from the list of
‘Inoperative Others Accounts’ and transferred to a separate ledger under General
Ledger Head, ‘Inoperative – 10 Years & above’. All unclaimed deposits outstanding for
10 years & above should also be reported to Reserve Bank of India in compliance with
Section 26 of Banking Regulation Act.
(viii) Reserve Bank of India vide their circular no. DBOD.No.DEAF Cell.BC.114/
30.01.002/2013-14 dated 27.05.2014 has directed the Banks that Bank shall calculate
the cumulative balances in all accounts (Inoperative Accounts 10 years & above and
amount remained unclaimed for more than 10 years) along with interest accrued, as on
the day prior to the effective date, i.e May 23, 2014 and such amounts due should be
transferred to the Depositor Education and Awareness Fund on June 30, 2014 (before
the close of banking hours). Subsequently, banks shall transfer to the Fund the amounts
becoming due in each calendar month (i.e. proceeds of the inoperative accounts and
balances remaining unclaimed for ten years or more) as specified in the Scheme and
the interest accrued thereon on the last working day of the subsequent month.
(ix) The incumbents are advised that data base and all records e.g. AOFs, Specimen
Signature Slips, Ledger sheets, Registers, vouchers, balance books etc., of such
inoperative accounts / unclaimed deposits viz. inoperative current and savings fund
accounts, Overdue Term Deposit Accounts, Inoperative Cash orders, Overdue Draft
Payable Accounts, Unclaimed Deposit entries lying in Sundry Deposit A/c etc. are
complete, segregated and properly maintained & kept safe with proper control
measures as per bank’s guidelines and that balances of such accounts are tallied.
(x) The amount of Stale Drafts / Cash Orders (not paid for a period of 3 months
from the date of issue) would not be transferred to ‘Inoperative Others’ /
‘Inoperative 10 years & above’ Head. Such Drafts / Cash Orders will continue to
outstand in the operative Draft / Cash Order account but for the purpose of reporting,
such Drafts / Cash Orders will be reported in CBS System under appropriate heads –
inoperative others / inoperative over 10 years & above.
33.1 Performing of the Activity for classifying the accounts:

(i) Before an account is transferred to Inoperative category, the branch will intimate
the customer, at least 3 months in advance the date of transfer, consequences
specifying detail of penal charges and procedure for getting the account operative.
(ii) The process for classification of an account as Inoperative Others / Inoperative
10 years & above and transfer to ‘Inoperative Others’ / Inoperative 10 years & above’
Head is customized in FINACLE Application. The activity for classification and transfer
of accounts as per above would be performed on quarterly basis in the month of
January, April, July and October every year. The process of transferring account to
‘Inoperative Category’ is centralised in which status of account, GL Sub-head Code are
changed and signatures are transferred from ‘AL’ Category to ‘IN’ Category.

(iii) The ‘System’ will transfer the eligible accounts to inoperative category, create a
transaction debiting and crediting the account with the balance outstanding and
generate an account-wise report, which would be printed by the branches and
examined by doing sample checking to ensure that no Ineligible Account is classified as
Inoperative’ Account. The checking official shall put his / her signatures in token of
having checked the report. The Report shall be preserved as per guidelines.
On transfer of account to Inoperative system will send a SMS to account holder
at the Mobile Number available on records with bank or a letter as per specimen
given below would be sent to the concerned account holder at the last known
address by Regd. Post.
(iv) A letter as per specimen given below would be sent to the concerned account
holder.

BO: _________
Telephone no. : _________

Business hours: __________
Weekdays : __________
Saturday : __________
Date: ___________
Mr. / Ms. / M/S

Address____________
Sir / Madam
Reg: Your Savings /Current Account No. ________ at our branch.
As you have not made any transaction in your above referred account for last 2
years, the account has been transferred to inoperative category as per the
applicable rules. After transfer of an account to inoperative category, any operation
in the account may be allowed only after re-verification of customer identity. Besides,
an incidental charge of Rs________ is also debited to the account every half-year.
It will be our pleasure if the operations in the account are re-started by you after
getting the account transferred to operative account category. For the purpose you
may call on us on any working day during business hours. In case you do not desire
to continue the account, you may get the account closed.
Assuring of our best services,
Yours sincerely,
(Branch Manager)

33.2 Allowing Operations in Inoperative Accounts
(i) No transaction in ‘Inoperative Account’ of other branches would be allowed by a
‘Service SOL’. The system will raise an exception in case of “Customer induced debit
tran to inoperative account” and the branch initiating the intersol transaction would come
to know that the account being debited is an inoperative account of other branch and
should not allow transaction/ operation. Cheques presented in the account would be
returned by assigning Reason Code.
(ii) ‘Parent SOL’ may allow debit transaction in ‘Inoperative Account’ if the
transaction is for closure of the account.
(iii) All other transactions would be permitted in the account only after the account
has been got transferred to ‘Operative Category’ by the Account Holder by making a
request in this regard and completing KYC requirements.
(iv) Funds, if any received for credit to an ‘Inoperative Account’ would be credited to
‘Sundries – General’ and the account holder would be contacted with the request to
contact the branch for getting the account converted into operative category.
33.3 General
(i) The Account Opening Forms and Specimen signature Slips of the accounts
transferred to inoperative category are segregated and kept in the joint custody of
Manager and an authorised officer. Under computerized environment, Inoperative
account signatures are classified separately and access to such signatures is allowed in
a limited way. The general users are not able to see the signatures of inoperative
accounts. The right to view signature of inoperative account is restricted to authorized
officers.
(ii) Necessary safeguards are required for prevention of fraud in these accounts.
Any withdrawal or operation in such account should be authorized by the Incumbent-in
charge/ authorized officer only.
(iii) Payments are made in such accounts only when authorised in writing by the
custodians of the inoperative accounts and such withdrawals must be passed by both of
them, irrespective of the amount involved. The passing officers must exercise extra care
while passing withdrawals from inoperative accounts and in case of any doubt, the
depositor must be identified to their satisfaction. Part withdrawals from the credits to
inoperative accounts should be allowed only after the particular account has been re-
transferred to operative accounts. In case the balance of any account is sought to be
withdrawn in full, the operation may be allowed in the inoperative category and account
closed. Drafts and cash orders may be paid direct from the inoperative category when
presented, if otherwise in order and are properly revalidated. All related reports shall be
generated as and when required and preserved for future reference.
(iv) No standing instruction should be accepted for Dormant, inoperative account and
system will display memo pad thereby restricting the data entry.

(v) While transferring accounts from inoperative to operative category under the
original number, a day book voucher will be passed in the System by debiting the
amount to inoperative account and crediting it to the operative account, which will be
authenticated by a checking official under his signatures. The relative account opening
form and specimen signature slip will suitably be re-placed in the files and binders of
operative accounts.
(vi) An inoperative account should be subjected to the KYC procedures as and when
any transaction comes up and it is sought to be transferred to the operative category.
No service Charge for transfer of account to ‘Operative Category’ would be
charged in the account.
(vii) The outstanding in the inoperative accounts are tallied as at the close of each
half-year, with the balances of "inoperative accounts (others)" and "inoperative accounts
(10 years or over)" in the general ledger.
(viii) Incidental charges will be applied to inoperative current and savings accounts
and interest will be allowed on savings accounts, as prescribed from time to time by
Head Office.
(ix) Branches shall make all out efforts on on-going basis, towards reduction in
inoperative accounts. There may be instances where depositor may have expired and
the legal representatives of the deceased may not be aware of existence of any account
in his / her name
(x) With a view to reducing the number of accounts lying under Inoperative category,
including ‘Inoperative 10 years & above’ , Circle Offices shall constitute special teams of
dedicated staff at branch / station level for contacting the depositors for transferring their
accounts to operative category. Where depositor is not found residing at the recorded
address, efforts should be made to enquire into the whereabouts of such depositors or
about their legal heirs / nominees.
(xi) The segregation of the inoperative accounts is from the point of view of reducing
risk of frauds etc. However, the customer should not be inconvenienced in any way, just
because his account has become inoperative. The classification is there only to bring to
the attention of dealing staff, the increased risk in the account.
(xii) If the letter sent as per Para 33.1 (iv) above is returned undelivered, branch
would immediately be put on enquiry to find out the whereabouts of customers or their
legal heirs in case they are deceased. Account holder may be tried to be contacted
telephonically, through e-mail in case his telephone number / Cell number / e-mail
address is available with the branch.
(xiii) In case the whereabouts of the customers are not traceable, contacting the
persons who had introduced the account holder, the employer / or any other person
whose details are available with the branch record should also be considered.
(xiv) Branches are instructed to pay ‘Simple’ interest on ‘Overdue Term
Deposits’ at Savings Bank Rate of Interest for the period from due date or

22.08.2008, whichever is later to the date of payment, where Fixed Deposit is not
intended to be renewed by the depositor.
34. Transfer of an Inoperative Account to Operative Category
a) When a customer-induced transaction happens on an inoperative account,
system raises an exception, such accounts shall then be transferred from inoperative to
operative category.
b) While transferring accounts from inoperative to operative category under the
original number, a day book voucher will be passed by debiting the amount to
inoperative account and crediting it to the operative account, which will be authenticated
by a checking official under his signatures. The relative account opening form and
specimen signature slip will suitably be re-placed in the files and binders of operative
accounts.
c) An inoperative account should be subjected to the KYC procedures as and when
any transaction comes up and it is sought to be transferred to the operative category.
35. STANDING INSTRUCTIONS

a) Standing instructions should be accepted in all deposit accounts for payments
like insurance premium, taxes, rentals, etc. As per instructions of Reserve Bank of India,
acceptance of standing instructions in Pension Accounts for transfer of funds from the
account is admissible. No standing instructions should be accepted for Inoperative
account.
b) In the ‘Compensation Policy of Bank’, it is stipulated that Bank will carry out direct
/ standing debit instruction of customer in time. In the event of Bank’s failing to meet
such commitment, customer will be compensated to the extent of financial loss incurred
on account of delay in carrying out the instruction, viz. loss of interest, cheque returning
charges.
c) If any instruction falls due on a holiday, it should be complied with on the
immediate preceding day.
d) Intimation of compliance/non-compliance of standing instructions should be sent
to customers immediately. If the amount is to be credited in another account at the
branch, the official initiating the debit will prepare the debit and credit advices. Similarly,
if a draft has to be sent, the same official will prepare the forwarding letter to the draft for
onward transmission to the beneficiary. Whenever a standing instruction is not carried
out for any reason the account holder should be informed at once.
e) Instructions dependent upon the balance of an account or on the receipt of

dividends, etc., should also be recorded separately for review.
f) Customer's signatures on letters containing standing instructions to make

periodical remittances, etc., must, on receipt, be verified and the letters acknowledged .
g) The documents relating to standing instructions i.e. addition, deletion,

modification should be preserved in separate files.

h) The standing instructions file will be kept by the section incharge, who must
ensure that the system of recording and carrying out customer's instructions is such that
no instruction can be overlooked or duplicated in error.
i) The SWO will enter the details of standing instructions in the system / register
and authorized officer will verify and authenticate the same. The print out of the report
containing the details of standing instructions (i.e. Standing Instruction Register) should
be preserved / recorded. The report generated from the system regarding standing
instruction may be maintained date-wise in an era file.
j) The standing Instruction once noted in the computer system are executed
automatically on due dates at prescribed periodicity. This process is a part of “Day
Begin Activity” where vouchers are also printed by the system.
k) The authorized officer will ensure execution of the standing instructions at the
time of day begin or as instructed by the customer. Report of all standing instructions
executed must be generated and preserved alphabetically under the names of the
account holders, on daily basis.
l) The charges for standing instructions (Registration, execution, non execution
etc.), as stipulated by Resource Mobilisation Division (previously Resource Mobilisation
Division), be recovered. Even if standing instruction is not put through for want of funds,
the prescribed charges are to be recovered.
m) If the transaction involves an upcountry center, remittance charges at the
prescribed rate and the actual postage shall be recovered additionally from the account
from which the amount is transferred
n) To exercise overall control, the incumbent Incharge/ assistant manager will
examine the standing instructions at the close of each month and verify that the
standing instructions falling due during the month have been duly complied with on due
date(s). Also he will append a certificate, under his signature and date, on a separate
sheet attached at the end of the daily report in token of his having conducted the above
checking.
o) Care must be taken when an account is transferred to another office that all
relative standing instructions are passed on thereto for compliance after confirmation by
the customer.
36. DEATH, INSOLVENCY AND INSANITY OF A CUSTOMER
a) Notice or knowledge of the death, insolvency or insanity of a customer precludes

the bank from paying further cheques on his account even though these may be dated
prior to his death, insolvency or insanity. The fact, with the date and the source of
information, should be recorded in the relevant account in the system and
.authenticated by the checking official. A note should also be made in the specimen
signature slip.

b) Deceased accounts are required to be handled with care and caution. At the
same time there is an imperative need to avoid inconvenience and undue hardship to
legal heirs. As part of our drive towards efficient customer service steps should be taken
to ensure expeditious settlement of claim cases in deceased accounts. With a view to
avoiding procedural difficulties in disposal of claim cases, steps may be initiated to
convert existing single accounts into joint accounts as also to register nomination in all
accounts, wherever permissible. All required guidance on ‘nomination’ and its
benefits be provided to the deposit account holder/locker hirers of the bank, as
per guidelines issued by the bank from time to time.
c) Numerous complaints regarding delay and procedural difficulties in the disposal
of balances in deceased accounts in single names can be avoided by encouraging
prospective account-holders to keep their deposit accounts in joint names with a
provision for payment of balance to the surviving co-account holder and to have
nominations registered. Efforts should be made to dispose of claim cases at the earliest.
d) In accounts, where nomination has been registered, settlement of claim should

be paid as per prescribed procedure.
37. DEATH CLAIM CASES
a) As soon as it comes to the notice of the incumbent incharge that an account-

holder has died, the fact be recorded in the relevant account in the system and
operation of the account will be stopped. Great care must be exercised in the disposal
of any balance standing to the credit of the account and all procedural/operational
instructions/guidelines of the bank to deal with such accounts should be meticulously
observed.
b) When the balance is not payable to the survivor(s), the operation in the account
must be stopped and treated as a claim case. The claimant/s be asked to submit claim
form (PNB 46-47) duly filled in along with death certificate and all supporting
documents/papers.
c) Claim form should be properly filled in and completed in all respects. Incumbents
incharge may assist the claimants in completing the formalities. It will be in order, if any
one of the major legal heirs signs the claim forms (if he is so authorized by other legal
heirs) and submits the same, duly completed and attested by notary or a Magistrate.
d) All claim applications should be recorded in the Death Claim Register for
disposal of claim cases and efforts made to settle the claims as early as possible.
Where the claim case is beyond the vested powers of the incumbent, one copy of the
claim form will be retained at the branch level and the other copy be forwarded to the
Circle Office/Head office, as the case may be, through proper channel. In case of
reference to Law Division, H.O., it is not necessary for Circle Office to retain a copy of
the form, but copy sent by branch may be forwarded to Law Division along with Branch
incumbent's/Circle Head’s recommendations in the matter.

e) In the Manager's certificate, on reverse of claim form, complete details of the
accounts of the deceased should be mentioned along with details of heirs. It should also
be mentioned after due check up, that there is no nomination made by the deceased.
f) A statement of outstanding claim cases should be sent to the Circle Office at the
end of each quarter.
g) Guidelines issued from time to time by Law Division, Head Office must be
complied by branches.
37.1 Settlement of claim where an account holder/locker hirer of the Bank has
been reportedly missing for the last seven years or more
a) Where a person is reportedly missing for the last seven years or more, he / she is
presumed to be dead in terms of Sections 107 and 108 of Indian Evidence Act.
b) The claim in respect of deposit account / locker of a customer of the bank,
reportedly missing for the last seven years or more, can also be considered for
settlement in accordance with the guidelines as circulated by Law Division, HO.
37.2 In-Operative Accounts.

a) In all the cases, where operations have not been made for a considerably long
period (or such period prescribed as per the guidelines of the bank from time to time),
the Incumbent should make an enquiry, to ascertain the reason of such non-operation.
In case of death of a customer, the deposit lying in account / articles kept in safe
custody and lockers, as the case may be, are to be paid / delivered as per the
nomination, if made by the deceased customer. If deceased customer made no
nomination, the case is to be settled having regard to claims made, and such claims
have to be dealt with, as per instructions given.
37.3 JOINT ACCOUNTS
a) Where in the case of joint account, relative account opening form provides for the
payment of balance to the survivor(s) (‘Either or Survivor’/’Former or Survivor’/’Anyone
or Survivors’) upon the death of one of the holders of a joint account, payment of the
balance in such accounts can be made, after verification of the fact of the death of the
account holder, to the survivor(s) of a deceased account holder unless at or before the
time of payment, an order of a court or other competent authority has been’
received prohibiting payment to the survivor(s). A letter of request from the
survivor(s) and death certificate produced should be kept on record.
b) Upon the death of one of the holders of a joint account, where the relative
account opening form provides for payment of balances to the survivors (either or
survivor/Former or survivor), the account will, of course, continue and payment can be
made to survivor(s). The survivor(s) should be requested to transfer the balance into a
new account in his or their own names. A fresh account opening form etc. would be
taken.

c) When the balance is not payable to the survivor(s), the operation in the account
must be stopped and treated as a claim case. The claimant/s be asked to submit claim
form (PNB 46-47) duly filled in along with death certificate and all supporting
documents/papers.
37.3 PARTNERSHIP ACCOUNTS
a) Upon the death of a partner in a partnership and in the absence of a contract to

the contrary (i.e. in the account opening form no. PNB-38 and/or the partnership deed)
the operation of the account will be stopped and dealt with as a claim case.
37.4 JOINT HINDU FAMILY ACCOUNTS
a) In the case of a joint Hindu family account, when the death of a major co-
parcener occurs, the operation in the account will be stopped and dealt with as a claim
case.
38. SETTLEMENT OF CLAIM CASES (For detailed guidelines, refer the
circulars issued from time to time by Law Division, HO)
38.1 TIME LIMIT FOR SETTLEMENT OF CLAIMS.
a) In case of deposit accounts and lockers having nomination/survivorship mandate,

the claim in respect of the deceased customer should be settled and payment to the
nominee / survivor(s) should be released within a period not exceeding 15 days from
the date of receipt of the claim subject to the production of proof of death of the
deceased customer and suitable identification of the claimant(s) to the satisfaction of
the branch manager; and
b) In the case of deposit accounts and lockers without survivorship mandate /
nomination the claim should be settled, in accordance with the bank’s guidelines, within
one month from the date on which the requisite documents have been submitted.
38.2 Settlement of Claims on the Basis of Nomination
a) As per delegation of powers, the Branch Manager / Officer In charge of the

Section has full powers to sanction the payment of deposit / delivery / release of the
articles kept in safe custody / locker, on the basis of nomination, to the nominee.
b) In the deposit accounts, where the account holder made valid nomination,
payment of the balance in such accounts to the nominee of a deceased account holder
represents a valid discharge of the bank’s liability unless at or before the time of
payment/giving access to the locker, an order of a court or other competent authority
has been’ received prohibiting payment to the nominee. A letter of request from the
nominee - PNB – 831 and death certificate produced should be kept on record. Due
care and caution should be taken to establish the identity of the nominee and the fact of
death of the account holder. It should be made clear to the nominee that payment is
made to him only as a trustee of the legal heirs/legatee(s) of the deceased account
holder i.e. such payment given to him shall not affect the right or claim which any
person may have for that money.

c) In such cases, therefore, while making payment to the nominee of the deceased
account holder, production of succession certificate, letter of administration or probate
etc. or obtaining of indemnity or surety from the nominee, irrespective of the amount
standing to the credit of the deceased account holder should not be insisted upon.
d) The above guidelines apply mutatis mutandis to Safe Deposit Lockers/Safe

Custody Articles
38.3 Settlement of claims in the absence of ‘Nomination’ and Survivorship

Clause
a) The claimant/s be asked to submit claim form (PNB 46-47) duly filled in along
with death certificate and all supporting documents/papers. In the Manager’s Certificate
on the reverse of claim form, it should also be mentioned, after due check up, that no
nomination was made by the deceased.
38.4 General Guidelines for Settlement of Claim
38.4.1 LEGAL REPRESENTATION

a) When Succession Certificate / Letters of Administration / Probate are produced
as proof of Title, the genuineness of the document should be checked up. If need be,
Court records be inspected personally or through a Counsel. If it is done personally, a
report to that effect must be kept on record. If done by counsel, a report be obtained
and kept on record. If the order produced is not genuine, necessary FIR be filed. Where
claim is settled on the basis of Succession Certificate / Letters of Administration /
Probate, indemnity/surety need not be called for. A letter of request and certified copy
issued by the court of the Succession Certificate/Letters of Administration/Probate be
kept on record.
b) Where the claim is passed on a succession certificate or letter of administration,
submission of form no. PNB-46-47 may not be insisted upon. The fact of payment be
marked against relevant entry on the original succession certificate/letter of
administration. The succession certificate/letter of administration/probate may also be
obtained and kept on record where the same relates only to the account to be settled.
38.4.2 CLAIMS BASED ON ‘WILL’

a) In cases where the deceased has left a ‘Will’, incumbent incharge may ask for a
probate of the ‘Will’. However, if that is not feasible, in exceptional cases where facts
are not complicated, all the legal heirs may be asked to support and confirm execution
of the will of the deceased and also that they have no objection in payment of the claim
amount in terms of Will, by a suitable declaration, duly attested by a notary or a
magistrate. While examining the ‘Will’ it be checked up that the ‘Will’ has been attested
by at least two witnesses. The copy of the ‘Will’ provided be verified with original ‘Will’.
The fact of verification be recorded on the copy and the acknowledgment of receipt of
original be also got recorded and signed by the legatee.

b) Some other check points, while examining the ‘Will’ submitted in support of the
claim, are given below:-
i. Find out who is/are the legatee/s entitled under the ‘Will’ for the claim made.
ii. An affidavit of the attesting witnesses that the ‘Will’ was executed by the
deceased in their presence, in sound and disposable mind and with free will
without any coercion or undue influence, be obtained and be kept on record.
iii. An affidavit from the claimant/s that the ‘Will’ relied upon which is submitted in
support of his/their claim is the last ‘Will’ of the deceased and that no litigation
challenging the ‘Will’ is pending in any court, be obtained and kept on record.
c) Probates, Letters of administration, Succession Certificates, court orders
appointing Receivers, etc., submitted to the bank for registration, must be carefully
examined by the incumbent incharge and entered under his initials in the power of
attorney register (form no. PNB-45).
d) Under Section 273 of the Indian Succession Act, probates and letters of
administration have effect over all the property and estate movable and immovable, of
the deceased throughout the state, in which these are granted. These do not have
effect outside the state unless these are granted (a) by a High Court, or (b) by a District
Judge, where the deceased, at the time of his death, had a fixed place of abode
situated within the jurisdiction of the judge and the judge certifies that the value of the
property and estate affected beyond the limits of the state does not exceed Rs. 10,000/-
. The foregoing remarks do not apply to succession certificates, which have effect
throughout India (Section 380 of the Indian Succession Act, 1925).
e) Sometimes all the legal heirs are not able to join in taking payment of deposit
lying in deceased depositor’s account/ delivery of articles kept in locker of the
deceased. Such of them as cannot join, may execute Power of Attorney in favour of one
of the legal heirs on the format circulated by Law Division. The Attorney should be duly
stamped and attested by a Notary / Magistrate. Any modifications in the proforma, if
required, may be got done in consultation with local Counsel / Law Officer at Circle
Office.
f) The power of attorney, executed abroad, should be attested by diplomatic or

consular Officer. The provisions of the Diplomatic & Consular Officers (Oaths & Fees)
Act, 1948 enable diplomatic or consular officer to attest/to do all notorial acts. Such
Power of Attorney is also required to be stamped in India by Collector of Stamps within
three months of its receipt in India.
g) In respect of premature payment of term deposit, cases falling beyond the

powers of Circle Office be forwarded to Head Office.
h) Whenever payment of deposit / delivery of contents of locker is made to one of

the legal heirs, on being authorized by power of attorney, receipt and indemnity have to
be signed / executed by the person authorized, for self and as an attorney of others
(name(s) to be specified). Likewise, when mother / father acts as natural guardian,
he/she shall sign the receipt and indemnity for self and as a natural guardian of the
minor(s) (name to be specified).

38.4.3 CLAIMS IN RESPECT OF CONTENTS OF LOCKER
a) In respect of claim to a locker, succession certificate should not be asked for, as

it is not a debt. If claim is to be settled on the title being legally established, the claimant
be advised to bring "Letter of Administration" from the competent court. Proper
inventory be taken in the presence of two independent witnesses and all the claimants.
A copy of the inventory be delivered to the claimants, against receipt. A copy of
inventory duly signed by two independent witnesses, claimants and incumbent incharge
be placed in the locker.
b) Claim case in respect of contents of locker may be settled against execution of
agreement of Indemnity / Indemnity bond on format circulated by Law Division, based
on the value of the contents of locker and after completion of other formalities like
submission of declaration on form no. PNB-46-47, death certificate etc,
38.4.4 SETTLEMENT OF CLAIM CASE WHERE VALUE OF CLAIM DOES NOT

EXCEED RS.5,000/-
Settlement of claim
38.4.4. Settlement of claim case where value of claim does not exceed Rs.5000/-
In claim cases involving an amount / value not exceeding Rs.5000/-, payment may be
made to the legal heirs of the deceased customer, after relying on the declaration made
in the claim form about the legal heirs of the eceased, duly attested by notary/Magistrate.
Payment can be made to legal heirs/claimants against execution of an agreement of
indemnity, specimen of which is given in ANNEXURE-VII.
Gold ornaments or other securities held against advances may also be released, on
adjustment / repayment of the outstanding dues in the loan account concerned, on the
above lines.
Many rural branches are situated in far flung areas. In respect of settlement of claim
cases involving small amount, the claimant may find it difficult to get the claim form
attested by Notary or Magistrate and obtaining of attestation may be expensive qua the
amount of claim.
In view of the above, in claim cases of the amount not exceeding Rs.5000/-, rural
branches located in far flung areas and far away from the city, need not insist upon
attestation of the claim form by Notary or Magistrate and the claimant be asked to
obtain and submit a Certificate from Sarpanch or other equivalent authority, as the
branch may deem proper besides verifying the fact of death and about the legal heirs of
the deceased.
38.4.5.Settlement of claim cases where value of claim does not exceed Rs. 50000/-
In claim cases involving an amount/ value not exceeding Rs. 50000/- payment may be
made to the legal heirs of the deceased customer, after relying on the declaration made

in the claim form about the legal heirs of the deceased, duly attested by Notary/
Magistrate. Payment can be made to legal heirs/ claimants against execution of an
agreement of indemnity, specimen of which is enclosed as ANNEXURE-VII.
Gold ornaments or other securities held against advances may also be released, on
adjustment/ repayment of the outstanding dues in the loan account concerned, on the
above lines.
No confidential enquiry need to be made by the Incumbent or any surety be insisted

upon.
38.4.6. Settlement of claim cases, where value of the claim exceeds Rs.50000/-
In claim cases involving an amount / value exceeding Rs.50000/-, confidential enquiry
be made by the branch about the legal heirs of the deceased customer. Keeping in
view the outcome of the confidential inquiry, if there is no dispute amongst the legal
heirs and all are ready to join in
settlement of the claim, the claim may be settled and paid to the legal heirs against
Indemnity Bond with surety to the satisfaction of the Incumbent In charge /
Sanctioning Authority (Specimen of the ‘Indemnity bond with Surety’ in case of
Deposit Account and Locker are given at ANNEXUREVIII & ANNEXURE-IX
respectively). Gold ornaments or other securities held against advances may also be
released on adjustment / repayment of the outstanding dues in the loan account
concerned, on the above lines.
38.4.7. Valuation for the purpose of exercising powers for sanction of claims
Following criteria will be applicable for the purpose of valuation of the claim
a) Deposit Accounts:
Current A/c and Saving Fund A/c - Balance Outstanding.
Fixed Deposit A/c - Deposit Amount (i.e. excluding Interest.
Recurring A/c - Amount deposited till date of claim I.e.

excluding interest).
b) Lockers
i) Currencies, gold & silver (what ever form it may be) should only be valued
– As per value on the date of claim.
ii) In case the locker does not contain items like currency, gold and silver, but
only contains other contents like documents, deposit receipts, Govt. Securities
etc., then sanction should be obtained from CH for its release to the claimant.
These documents need not be specifically valued but the inventory should give
their details and receipt should be obtained for such contents of the locker.

iii) In case the locker contains items like currency, gold and silver and also
other contents like documents, deposit receipts, Govt. Securities etc., then the
sanction for such claim case should be obtained from the authority not less then
Chief Manager / Circle Head or higher authority depending upon the valuation of
currencies, gold and silver found in the locker.
iv) Any authority given in favour of an agent / authorized person comes to end
with the death of the principal. The 'Authorized Person', if any, appointed by the
locker hirer during his lifetime, must not be allowed to operate the locker, after the
death of the locker hirer.
v) In respect of claim pertaining to locker, succession certificate should not be

asked for as it is not a case of debt. If claim is to be settled on the basis of legally
established title, the claimant be advised to bring ‘letter of administration’ from the
competent court.
vi) Value of the contents of locker should be ascertained for the purpose of
determining the competent authority to sanction settlement of the claim. For this
purpose, proper inventory of the contents of locker be prepared (in duplicate) in
presence of and attested by two independent witnesses, the claimants and the
Incumbent In-charge of the branch / custodian of the locker at the branch. The
contents should again be put back in the locker along with duplicate copy of the
inventory. Thereafter, the claim should be got sanctioned from the competent
authority, depending on the value of the contents of the locker. After sanction of
the claim by the competent authority the contents of the locker may be delivered /
released to the claimants against proper receipt after completing all the
formalities.
(Procedure for settlement of claim in respect of locker will be applicable for safe
custody of articles also).
c) However, if sanction of claim case falls under powers of Circle Head, depending
upon the valuation of contents of locker, they alone will sanction the release of the
contents / documents. The documents need not be specifically valued but the inventory
should give their details and receipt should be obtained for all the contents of the locker.
38.4.8 TREATMENT OF PIPELINE FLOWS IN THE NAME OF THE

DECEASED DEPOSITORS.
a) Pipeline flows in the name of the deceased deposit account holder, if received,
be returned to the remitter with the remark ‘Account holder deceased’, under intimation
to the survivor(s) /nominee accordingly.
39. RULES OF SUCCESSION IN CASE OF HINDUS, BUDDHIST, JAIN AND

SIKH.
Incumbents are advised to refer to the guidelines issued from time to time in this regard
by Law Division, HO.

40. PROHIBITORY AND ATTACHMENT ORDERS
a) Generally bank receives attachment orders from Civil Courts and/or Income Tax
Authorities. Under Section 226(3), I.T. Act, Income Tax Officer can attach any debts due
which may be payable at the time of attachment order or afterwards and also any
amount subsequently received. In view of this specific provision the attachment
order issued by the Income Tax Officer applies to the credit balances due or
becoming due and proceeds of instruments in collection when received.
b) Freezing/Seizure of account means that no money may be deposited in or

withdrawn from the account.
c) Each order has to be perused as to its nature and effect and further action has to
be taken, accordingly.
d) The order received should be in writing and specific. If oral order is received, the
order issuing authority should be informed that only written order received in terms of
any provision of Law will be acted upon.
e) Genuineness of order received be verified. (For verification of the
genuineness of the Court Orders, Branches may follow the same procedure as is
prescribed under Para 38.4.1 above, reproduced hereunder;
“When Succession Certificate / Letters of Administration / Probate are produced
as proof of Title, the genuineness of the document be checked up. If need be,
Court records be inspected personally or through a Counsel. If it is done
personally, a report to that effect be kept on record. If done by counsel, a report
be obtained and kept on record. If the order produced is not genuine, necessary
FIR be filed. Where claim is settled on the basis of Succession Certificate /
Letters of Administration / Probate, indemnity/surety need not be called for. A
letter of request and certified copy issued by the court of the Succession
Certificate/Letters of Administration/Probate be kept on record.”
f) All such instructions received by the branches from DRI / IT / Customs / Excise /
Court or any other competent authority should be recorded in the relevant account in
the system. A record of all such orders received and action taken should be maintained
in a register (as per proforma hereunder). The original order should be kept in a
separate file.
Sl.No. Date & Time of Authority A/C No. Name of customer

Receipt
1. 2 3 4 5
If specific amount or full Date & Time when Remarks
balance (Amount / Full) attached / frozen.
6 7 8

g) The account holder be immediately notified about the court order and a copy of
the order so received be provided, if requested for (cost of providing copy of the order
would be borne by the account holder).
h) The order so received would be effective for the period mentioned in the order. In
case no period is specified, the branch should write to such authority after every one
year to confirm its enforceability, until the order is satisfied or vacated.
i) Satisfaction or vacation of the order should also be recorded in the System as
well as in the relevant register (refer clause (f) above) and letter remitting the amount,
order of vacation be kept in the file maintained for the purpose.
j) A prohibitory or attachment order issued by a Court or a Competent Govt.

Department affects a customer’s account only to the extent specified in the order.
k) If the attachment order specifies the amount to be attached, the balance, over
and above the amount to be attached, can be allowed to be withdrawn by the account
holder. However, where the amount to be attached is not specified and the order refers
generally to debts due from the bank to the customer, the bank is prohibited from paying
away any credit outstanding balance in the customer’s account.
40.1 The legal position of powers of the civil courts and Income Tax Authorities
with regard to issuing of attachment orders are as under:
i. In case of attachment orders issued by Civil Court, there is no obligation to pay
the cheques of the depositor up to the amount of the order. The attachment
order applies to all credit balances lying in SB/CA and FDRs which are due for
payment in future. Even if the customer has made request for withdrawal of
the amount but the same has not actually been paid to him, the order will
apply to the amount held with the bank.
ii. The attachment order issued by Civil Courts as per legal position is not
applicable to future credits coming in the account of the customer. Therefore, in
case of attachment order, future credits can be continued in the account.
However, sometimes Courts are also not appreciating this difference in their
power of attachments. As such, every attachment order and its scope should be
examined to act within the framework of the order issued. It is for the customer
to agitate legal position before the Court/Authority for its cancellation,
modification etc.
iii. In case credit is afforded on the basis of instrument sent in clearing for
collection but instrument is received back as dishonoured, the attachment
order will not apply to such amount.
iv. If the instrument is received in clearing and though has been debited to the
account but not yet communicated to the presenter, the attachment order shall
apply to such an amount as the bank has not parted with the funds.
40.2 Effect of Attachment Order on Instruments sent for collection:

Case 1 – Customer tenders a cheque for collection in the frozen / seized account
a) Customer be advised that transaction cannot be entertained in a frozen account.

However, if collection is insisted upon by the customer, it can be informed to the
customer that the amount collected cannot be collected to the frozen account and
therefore is to be kept in sundry account. The customer may take appropriate steps for
withdrawal/modification of the order. Entry should continue in the sundry account till the
freezing order is lifted.
(If amount so collected is credited to the account, the amount will also stand frozen.
However, if amount is kept in sundry, our customer will be at liberty to get this amount
transferred / credited to any other account, if in the meanwhile no direction is received.)
Case 2 – A customer tenders cheque for collection in local clearing. His account
is not frozen at this point of time. The instrument is lodged in outward clearing.
Before the cheque is released to shadow balance, the branch freezes the
customer account.
a) In case of freezing/seizure order in the account, there cannot be any debit/credit

in the account. Releasing of funds in the account under shadow is a process for
completion of the transaction. As soon as the freeze / seizure instructions are issued, all
the processes involved in the transaction an account are suspended. Hence, the
amount will be stored in shadow status, to sundry account.
Case 3 - The customer account is frozen after the cheque has been released to
shadow balance, which means that as at the time of freezing, the customer
account balance was partly clear and partly un-clear. The branch receives
returning of the cheque that was released to shadow balance.
c) As clarified above, in case credit is afforded on the basis of instrument sent in
clearing for collection but instrument is received back as dishonoured, the attachment
order will not apply to such amount. Accordingly, the amount for the dishonoured
cheque will be debited to the account.
41. EVIDENCE IN COURT
a) Under the Bankers' Books Evidence Act, the bank is not compelled, unless by
special order of the court, to produce its books as evidence in any legal proceedings, to
which it is not a party. It is ordinarily sufficient for the bank to furnish relative extracts
from its books, duly certified by the incumbent incharge in the following form:-
“Certified that the above is a true copy of entry/entries in the ............ which is/are
one of the ordinary books of the bank, that such entry was/entries were made in
usual and ordinary course of business and that such book(s) is/are still in the
custody of the bank.”
b) If the bank is summoned to give formal evidence to the income-tax authorities,

the customer should be notified that, unless steps are taken by him to have the
summons withdrawn, the bank will have to comply with it. If the summons is not

withdrawn, information should be supplied, as far as possible, in the form of a certified
statement as provided for under the Bankers' Books Evidence Act. This statement
should be confined to the particular information asked for and, should verbal evidence
be insisted upon, it must be given with the utmost caution.
c) The Information Technology Act, 2000 has come into force with effect from
17.10.2000. The IT Act has also made amendments to the Bankers' Book Evidence Act,
1891.
d) It is pertinent to mention that the definition "Bankers' Book", as amended includes

the ledgers, day-books, etc. used in the ordinary business of a bank kept not only in the
written form but also as printouts of data stored in a floppy, disc, tape or any other form
of electro-magnetic data storage device. Further, "certified copy" means also the books
of a bank consisting of printouts of data stored in a floppy, disc, tape or any other
electro-magnetic data storage device, a printout of such entry, or a copy of such printout
together with such statements certified in accordance with the provisions of the Act.
e) The Act has prescribed the following certificates in case of the printout:
(i) A certificate to the effect that it is a printout of such entry or a copy of such
printout by the principal accountant or branch manager; and
(ii) A certificate by a person in-charge of computer system containing a brief
description of the computer system and the particulars of the safeguards adopted
by the system to ensure that data is entered or any other operation performed
only by authorized persons;
(iii) The safeguards adopted to prevent and detect unauthorized change of
data;
(iv) The safeguards available to retrieve data that is lost due to systemic
failure or any other reasons;
(v) The manner in which data is transferred from system to removable media
like floppies, disc, tapes or other electro-magnetic data storage devices;
(vi) The mode of verification in order to ensure that data has been accurately
transferred to such removable media;
(vii) The mode of identification of such data storage devices;
(viii) The arrangements for the storage and custody of such storage devices;
(ix) The safeguards to prevent and detect any tampering with the system;
(x) Any other factor which will vouch for the integrity and accuracy of the
system.
f) A further certificate from the person in-charge of the computer system to the
effect that to the best of his knowledge and belief, such computer system operated
properly at the material time, he was provided with all the relevant data and the printout
in question represents correctly, or is appropriately derived from, the relevant data."
g) Hence, in case a certified copy in the form of printout/copy of printout of a/cs or

other material from other books are furnished at the time of filing suit or as called for by
any order of court or of any authority, then the proforma of certificate(s) are as follows :
Certificate by Principal Accountant/Branch Manager
"Certified that the above a/c is a printout/a copy of the printout of entries of
one of the ordinary books of the bank.”
42. INSPECTION OF RECORD BY INCOME TAX DEPARTMENT
a) Income tax officers have no powers to inspect all books of the branch. They can,
however, inspect the record of a particular assessee over whom the income tax officer
has jurisdiction, under section 133-A of the Income Tax Act, 1961.
43. OPERATION OF BANK ACCOUNTS BY OLD/ SICK/ INCAPACITATED
CUSTOMERS:
43.1 The cases of sick/old incapacitated account holders fall into following categories:
(a) An account holder who is too ill to sign a cheque and cannot be physically
present in the bank to withdraw money from his bank account but can put his/ her
thumb impression on the cheque/withdrawal form and
(b) An account holder who is not only unable to be physically present in the bank but
is also not even able to put his/her thumb impression on the cheque/ withdrawal form
due to certain physical defect/ incapacity.
43.2 With a view to enabling the old/sick account holders to operate their bank
accounts, it is advised to follow the procedure enumerated below:-
(i) Wherever thumb or toe impression of the sick/old incapacitated account holder is
obtained, it should be identified by two witnesses having business relationship with the
bank, one of whom should be a bank official.
(ii) Where the customer cannot even put his/her thumb impression and also would
not be able to be physically present in the bank, a mark can be obtained on the
cheque/withdrawal form, which should be identified by two witnesses having business
relationship with the bank, one of whom should be a bank official.
("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. There
must be physical contact between the person who is to sign and the signature or the
mark put on the document. Therefore, in the case of the person who has lost both
his hands, the signature can be by means of a mark. It could be the toe impression.
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.")

(iii) The customer may also be asked to indicate to the bank as to who would
withdraw the amount from the bank on the basis of cheque/withdrawal form as obtained
above and that person should be identified by two independent witnesses. The person
who would be actually drawing the money from the bank should be asked to furnish his
signature.
The branches are advised to obtain a letter in respect of above.
DRAFT LETTER
The Manager,
Punjab National Bank
BO: --------------
Dear Sir,
Reg. Operation in the A/c. No. ------------ In the name of Shri / Smt. ------------
It is confirmed that Shri/ Smt/Ms.---------------- customer / account holder has indicated
/authorized /Shri /Smt /Ms ------------ in our presence, for receiving money from the bank
on the basis of the mark / impression made / put by him / her on the cheques
/withdrawal slip. The signature of Shri Smt/Ms.----------- is attested here below.
Thanking you Yours faithfully,
(SIGNATURE OF WITNESSES)
SIGNATURE OF IDENTIFIED /
AUTHORISED PERSON
-------------------------------------
(iv) The person concerned has to make some mark somehow in the cheque/withdrawal
slip for allowing operation in the account. On the very backside of the instrument on
which the person is giving the instruction by a mark, the independent witnesses can
confirm that the said mark was put up by the person concerned himself in their
presence.
The bank official may visit the house/hospital, if necessary to identify the customer and
genuineness of the case.
A letter as suggested above can be taken at the time of making the payment to the
authorised person.
43.3 In this connection some queries may arise for which the clarification is given below
for the guidance of the branches:
Query No.1

Standardisation of mark in the absence of thumb/toe impression should be made
specific and properly defined, as otherwise it could lead to avoidable complication and
uncertainties as, for instance, a customer may opt for taking impression of knee, elbow,
nose or ear etc,
Clarification
Regarding standardisation of mark in the absence of thumb/toe impression / keeping in
view the judgment of the Suprerne Court. in AIR 1950 page 265, Law Division is of the
opinion that 'the person concerned has to make some mark somehow in the
cheque/withdrawal slip for allowing operation in the account. On the very backside of
the instrument on which the person is, giving the instruction by a mark, the independent
witnesses can confirm the said mark was put up by the person concerned himself in
their presence.
Query No. 2
Whether, bank would get a valid discharge as against the account holder if payment is
made to some other person on account of the old/sick/incapacitated account holder.
Clarification
If the mark on the cheque/withdrawal slip in question is taken as stated herein above,
bank would get a valid discharge as against the payments in question. In as much as
his marking is his signature.
Query No. 3
Whether official will visit the customer at his house / hospitable?
Clarification
The bank official may visit the house/hospitable, if necessary to identify the customer
and genuineness of the case.
Query No. 4
Obtention of photograph of the authorized person, to whom payment is made on
account of the account holder concerned, should be prescribed.
Clarification
There is no necessity of getting the photographs of the authorized person to whom the
payment is made in a particular account. Instead of the photograph a letter as
suggested above can be taken at the time of making the payment to the authorized
person.

Query No. 5
It is to be determined whether the facility could be made to Non-residents could be
excluded.
Clarification
When a facility is given to an account holder, bank cannot make a distinction between a
resident or non-resident of account holders.
44. OPENING AND ALLOWING OPERATION IN THE ACCOUNTS IN THE NAME OF

PERSONS WHO ARE MENTALLY ILL AND PERSONS SUFFERING FROM
DISABILITIES LIKE AUTISM, CEREBRAL PALSY, MENTAL RETARDATION AND
MULTIPLE DISABILITIES, UNDER GUARDIANSHIP, GUARDIAN APPOINTED UNDER
RELEVANT ACTS.
a) Considering the fact that persons, who are Mentally ill And persons suffering from
disabilities like Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities, do
need banking services to manage the funds created by the parents, concessions given by
the Authorities, etc., branches may allow opening an account / operations in the accounts
of the persons, who are Mentally ill And the persons, suffering from Autism, Cerebral
Palsy, Mental Retardation and Multiple Disabilities, to the Guardian / Manager appointed
under any of the following two Acts:
(i) Mental Health Act, 1987. The Act deals with persons who are mentally ill
(persons in need of treatment by reason of any mental disorder other
than mental retardation). Under the Act, where the Mentally ill person is
incapable of taking care of himself, the Distt. Court or where a direction has
been issued under the Act, the Collector of the Distt may appoint any any
suitable person to be his guardian.
44.1.(i)The Mental Health Act, 1987provides for a law relating to the treatment
and care of mentally ill persons and to make better provision with respect to their
property and affairs. According to the said Act, "mentally ill person" means a person
who is in need of treatment by reason of any mental disorder other than mental
retardation. Sections 53 and 54 of this Act provide for the appointment of guardians
for mentally ill persons and in certain cases, managers in respect of their
property. Theprescribed appointing authorities are the district courts and collectors
of districts under the Mental Health Act,1987.
(II) The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 provides for a law relating to certain
specified disabilities. Clause (j) of Section 2 of that Act defines a "person with disability"
to mean a person suffering from any of the conditions relating to autismcerebral
palsy, mental retardation or a combination of any two or more of such conditions and
includes a person suffering from severe multiple disabilities. This Act empowers a

Local Level Committee to appoint a guardian, to a person with disabilities, who shall
have the care of the person and property of the disabled person
(iii) Branches are advised to take note of the legal position stated above and may rely
on and be guided by the orders / certificates issued by the competent authority, under
the respective Acts, appointing guardians / managers for the purposes of opening /
operating bank accounts. In case of doubt care may be taken to obtain proper doubt,
care may be taken to obtain proper legal advice from the Law Division, HO legal
advice from the Law Division, HO
The guidelines will be applicable to mentally handicapped persons, whether the person
is minor or major.
b) Where guardian of a minor or major person, (suffering from Mental illness And
persons, suffering from disabilities like Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities or any existing account holder subsequently acquiring these
disabilities), duly appointed by the competent authority /court under Mental Health Act,
1987 or under The National Trust for Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Mental Disability Act, 1999 approaches the branch for
opening/continuing to operate the account of such person, such accounts
(savings/term deposits and recurring deposit accounts only) may be
opened/allowed to be operated by the guardian appointed under the aforesaid Acts.
The operational guidelines in such cases will be same as are applicable for accounts
opened in the name of minor under guardianship.
c) The guardianship will continue (even after attaining the age of 18 years, in case of
minor) as long as the disability continues.
d) The guardian, appointed under any of the above Acts, will be asked to furnish once
in a year, a certificate from the appointing Authority that he/she continues to be
guardian of such person/s and has not been removed from the guardianship.
Guardian so appointed will be asked to give affidavit (Format given below) to the
Bank that in case his appointment as guardian has been cancelled / elapsed /
withdrawn by the Competent Authority, he will immediately bring this fact to the notice
of Bank and also shall indemnify the Bank in case of any loss to the Ward on account
of his not bringing this fact to the notice of Bank.
e) No current account will be opened in the name or on behalf of such persons and in
no case such person will be allowed an overdraft.
f) Under Banking Companies (Nomination) Rules, in case of a deposit made in the

name of minor, the nomination can be made by a person, lawfully entitled to act on
behalf of minor. Accordingly, in case the ward, whose guardian has been appointed
under the above two Acts, is minor, nominee in the account can be appointed by
such guardian in terms of the nomination rules. However, where the ward is
major, Guardian will not be permitted to make nomination in the account.

Nomination made during minority of the ward will cease to be operative after the
attainment of age of majority by the ward.
g) On the death of the guardian, no operation in the account will be allowed unless the
new guardian is appointed by the Competent Authority under the Act.
h) On the death of the ward, the matter will be dealt as a claim case.
i) Locker facility will not be allowed to the guardian appointed under the above Acts.
j) List of 499 Districts, where Local Level Committees have been constituted under
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation
and Multiple Disabilities Act, 1999 is placed below. The list is also available
http://rbi.org.in
DRAFT AFFIDAVIT
I, _________________ S/o D/o W/o Mr./Ms.____________________ aged ________

resident of _____________________ do hereby solemnly affirm and declare as under :
1. That I have been appointed as guardian of the mentally challenged person

Mr./Ms. __________________ in terms of order dt. __________ passed by
________________________ (name of the authority/court) under ___________ Act,
certified copy enclosed/already furnished.
2. That in terms of the orders passed by the competent authority/ court as above, I
am authorized to open and operate/continue to the account with PNB, BO ________ in
the name of Mr./Ms.___________ bearing number __________ till __________ or the
disability continues.
3. That I confirm that I continue to be the legal guardian of Mr./Ms._______

appointed as above and my guardianship has not been cancelled/elapsed/withdrawn by
the competent authority/court.
4. That I undertake that as soon as my guardianship will be cancelled/

elapsed/withdrawn by the competent authority/court or the disability of Mr./Ms.
__________ ceases, I shall immediately inform to the bank about the same.
5. That I undertake to indemnify to the bank to the extent of loss suffered by Mr./Ms.
_______ and claimed from PNB due to my not informing of
cancelling/withdrawing/elapsing of guardianship by the competent authority/court.
DEPONENT

I ____________ solemnly affirm and declare that whatever stated above is true to the
best of my knowledge and belief and nothing has been concealed.
DEPONENT
Place: _________
Date: __________
45. Opening / transfer of account of newly married girl- Customer identification

procedure under KYC guidelines
a) It has been observed that problems are being faced by married woman in
providing of identification / address proof documents while opening of new account or
for changing the pre-marital name and address in an existing account.
b) With a view to mitigate the hardships being faced by married woman and also to
provide guidelines to be followed by all the branches uniformly, list of various
documents that can be relied upon in dealing with the requests from newly married
woman for opening new account or modification in the existing account is provided
hereunder. However, Incumbents are advised that basic ‘KYC’ / ‘AML’ guidelines, that
the identification of the applicant is ensured beyond doubt, as contained in circular no.
65/05 dated 30.12.2005, should not be compromised.
45.1 EXISTING ACCOUNT
A. Change in Address:
a) Where a change in address is sought in existing KYC compliant account, the

same may be acceded to on the basis of;
i. Her self-declaration; and
ii. Identity and Address proof of the groom supported by marriage certificate. In
absence of marriage certificate, notarized affidavit and clear photograph of the
wedding where the photo of the woman and her husband are shown together
and the photo of the woman matches with the photo on the pre-marital
identification document available on bank’s record.
B. Change in Name:
a) In case of change in surname

i. Her self-declaration requesting a change in surname and indicating her desire to
change the style / words of her signatures be obtained; and

ii. Marriage certificate issued by Magistrate. In absence of marriage certificate,
notarized affidavit and clear photograph of the wedding where the photo of the
woman and her husband are shown together and the photo of the woman
matches with the photo on the pre-marital identification document available on
Bank’s record; and
iii. Identification and address document of the husband where the family name
matches with that on the application to change in the pre-martial surname.
iv. Where it is difficult to produce evidence of marriage, it is adequate if a
confirmation of change of name is provided on the letter of request, from duly
respectable person well known to the Bank.
v. Fresh specimen signature mentioning the style of account is also obtained.
vi. Where the newly married woman is working in organized sector (corporate
sector), the employer’s certificate – about proof of residence, changed name /
surname.
vii. Where the newly married woman is working in unorganized sector (home –
maids, etc.) declaration by the introducer of the account (introducer can be
husband or any other person having at least two years banking relationship with
the bank) about the address and changed name / surname.
b) In case of change in name in full, the procedure, as laid down in the extant law
relating to change of name, is to be adopted by the applicant woman.
45.2 OPENING A NEW ACCOUNT

In absence of any of the identification documents, as listed in circular no. 65 / 05,
branches may rely upon;
i. Marriage certificate (which has been made legally compulsory now);

ii. In absence of marriage certificate, notarized affidavit and clear photograph of the
wedding where the photo of the woman and her husband are shown together
and the photograph of the woman matches with the photograph on the pre-
marital identification document available on Bank’s record;
iii. In case of non-availability of wedding photograph as at ii) above, marriage
invitation card with joint photograph (marriage photograph) of the bride and
groom can be obtained;
iv. Identity and address proof documents of the husband where family name
matches with that on the application;
v. Where the newly married woman is working in organized sector (corporate

sector), the employer’s certificate – about proof of residence, changed name /
surname.

vi. Where the newly married woman is working in unorganized sector (home –
maids, etc.) declaration by the introducer of the account (introducer can be
husband or any other person having at least two years banking relationship with
the bank) about the address and changed name / surname.
vii. Upon opening of the account, letter of thanks be sent by the Registered Post with
Acknowledgement Due to the new account holder and the introducer. This would
serve as a confirmation of not only the introduction but also the correctness of
the address provided.
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Annexure – I

(IAD Cir. No. 32 /2017 dated 21.08.2017)

3. Pass books / Statement of accounts

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 1 of 140

3.4 The ad hoc committee of our Bank desired that;

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3.11 ISSUE OF PASS BOOKS-SAFEGUARDS:

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3.12. ADDITIONAL SAFEGUARDS FOR ISSUE OF DUPLICATE PASS BOOK

4. PAN / GIR Number Or Form 60

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 4 of 140

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 5 of 140

17 Sale or purchase of any immovable property. Amount exceeding ten lakh

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 6 of 140

114C. Verification of Permanent Account Number in transactions specified in rule

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Updated up to 30/06./2017 I & AD BOI / CH. IV Page 8 of 140

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 9 of 140

S. No. Nature & Value of Transactions Class of person (reporting person)

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Updated up to 30/06./2017 I & AD BOI / CH. IV Page 11 of 140

(ii) Post Master General as referred to

Provided that in case of a reporting person, being a Post Master General or a

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 12 of 140

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 13 of 140

C.3 ACCOUNT SUMMARY

C.3.1 Aggregate gross amount credited to the account in cash.

C.3.2 Aggregate gross amount debited to the account in cash

Updated up to 30/06./2017 I & AD BOI / CH. IV Page 14 of 140

(I) In terms of Reserve Bank of India Directives, remittance of funds by way

(II) Reserve Bank of India, vide their letter no. DBOD.AML

4.3 General Instructions

Updated up to 30/06/2017 I & AD BOI / CH. IV Page 40 of 140

5.1 SENIOR CITIZEN

Updated up to 30/06/2017 I & AD BOI / CH. IV Page 41 of 140

e) The benefit of additional rate of interest as applicable to Fixed Deposit of Senior

5.2 Premium Customer

a) A customer maintaining a balance above a stipulated limit is designated as

6. SPECIAL CATEGORY ACCOUNTS

6.1 ARMED FORCES PERSONNEL - OPENING OF NEW ACCOUNTS

a) In the absence of KYC documents,In the cantonment areas, deposit

Updated up to 30/06/2017 I & AD BOI / CH. IV Page 42 of 140

6.3 ACCOUNTS IN THE NAMES OF PURDANASHIN LADIES:

6.4 ACCOUNTS IN THE NAMES OF MINORS

6.5 ACCOUNTS IN THE NAMES OF ILLITERATES

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6.6 ACCOUNTS IN THE NAMES OF UNDISCHARGED INSOLVENTS

a) No account should be opened in the name of an un-discharged insolvent.

6.7 ACCOUNT IN THE NAME OF BLIND PERSON

6.8 BANK EMPLOYEES' ACCOUNTS

(a) Incumbents Incharge while allowing opening of second/subsequent running

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(c) Transactions in the employees' accounts be scrutinised strictly considering the

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(iv) The safeguards in regard to issuance of cheque books should invariably be

The Incumbent Incharge,

Reg: Mr/Ms. (name of the depositor) _______________working in your office.

Updated up to 30/06/2017 I & AD BOI / CH. IV Page 46 of 140