Professional Documents
Culture Documents
1. INTRODUCTION
3. VERIFICATION OF SUPPLY:
c) No form is missing.
The Drafts received by the branches should be entered and the stock
should be maintained in the CBS system as per norm.
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6. APPLICATION FOR DRAFTS:
Application for a draft shall be made in Form No. 341, duly filled in by
the Applicant and signed (with address and mobile / telephone number). It is
important to see that all the columns in the form such as name of beneficiary,
amount, exchange and the Centre/Branch on which the draft is required are
properly filled in and that the form is signed by the purchaser. Application for
purchase of a draft may be made by the existing customer by a letter duly
signed by him and addressed to the Branch authority, giving the full particulars
of the draft intended to be purchased.
Note: Application for a Draft in favour of the Bank itself must specifically
mention the account to which the proceeds of the draft are to be
credited.
While accepting consideration from customer for issuance of DD Branch will make the
credit transaction, either through TM or DDMI, in the office account number
00980124001111 only, no matter from which branch the credit is initiated.
a) *Branches must ensure before printing a DD that the Printed Serial Number (PSN)
of the DD appearing on MICR band matches with the number displayed on the
screen. As per present practice the Branch Serial Number (BSN) will be identical to the
PSN of the DD. This will be printed on the body of the DD above the MICR band. Branch
must ensure that PSN and BSN are identical.
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In case of any mismatch they must make necessary rectification before proceeding
with the printing of DD. Only after funds being deposited for the draft/drafts to be
purchased or where so instructed, on the applicants account being debited and
authorized for such debit the authorized staff will proceed to print the draft.
The alphabetical code OT,TT,OL & TL indicating the value range of drafts
and are printed in horizontally cages on the left side of the draft
instrument.
Depending upon the amount of the draft issued, one of these cages is to
be punched to indicate amount or value range of the draft as explained
below:
Below Rs.10000/-
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In addition vertically arranged cages with pre-printed number from 1 to 9
provided along with the right hand edge of the Demand Draft leaf.
Corresponding to the first digit of the amount of the draft (left most digit)
one of the numbered (vertical) cages is to be punched. For example, if the
value of the draft is Rs. 30000/-, punching should be made against OL on
the left side and 3 on the right side of the draft leaf. It is not permitted to
put cross-mark or tick-mark in the cage by dot pen. For demand draft
below Rs. 100/- the cage ;1; should be punched.
The Draft shall have to be issued free form alteration. When a draft leaf
is spoiled in
and it should be preserved for record after noting the same in Draft
Issue Register.
The authorized official(s) will scrutinize the draft after printing and
sign the Draft. The
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authorized official.
iii) Branches which have one officer will draw Drafts under single
signature in favour of
received by them.
for value more than the ceiling amount under single signature
due to circumstances
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may otherwise issue multiple instruments to cover the value.
Since the Draft is payable at par, the payment shall be made by the
branch
All the drafts issued prior to CBS are Stale and will have to be
cancelled. On receipt of non-CBS drafts branches shall have the Status report of the
instrument from Demand Draft Department (circular No.DD/DD/ 2 /OM-0277/11-12
dated 04-08-2011) and then they may pay the draft after the same has been inserted
into system by our CBS Department.(For status report branches shall have to send
mail to smdd@unitedbank.co.in)
a. Mode of Payment
ii) It does not carry any material alteration and if there is any, it has been
properly authenticated;
iii) The draft bears signature(s) of the issuing branch along with his/their
signature serial number(s) and the signature(s) tallies with the
recorded specimen in the Facsimile Specimen Signature Book.
iv) In case of presentation over the counter, if the demand draft does not
appear to have been crossed, payment may be made on proper
identification of the payee. The payee may be identified as an account
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holder of the bank if his account is maintained with the branch. Valid
passport may also be accepted for the purpose of identification.
vii) The draft should be examined under an ultra-violet ray lamp wherever
such machine is available for detecting possible chemical alterations.
C) Some exceptions
The issuing branch will first of all check the status of the DD. If it remains
unpaid then a caution mark will be made to the DD using DDSM menu.
However, the branch must, prior to marking caution verify the authenticity of
the instructions.
In such a situation the drawee branch or for that matter any branch shall
make note of the loss only if the authenticity of instruction is established.
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Otherwise, the branch will advise the purchaser to approach the issuing
branch
The issuing branch, on receipt of such a request, will check the status of the
DD in question. If the same is found unpaid, the authenticity of request is
established beyond doubt and appropriate indemnity is executed by the
purchaser and payee, the issuing branch shall cancel the DD and issue a
fresh Demand Draft in lieu of it. It may be noted here that obtaining of
Non Payment Certificate from drawee branch shall be no longer be
necessary before issuance of duplicate DD as has been done now, as
this information will be readily available from the system.
b. If the payee declines to join the indemnity, a declaration shall be obtained from
him to the effect that the draft has not been received by him or lost from
his custody : that he has no objection to a duplicate draft being issued to the
purchaser and that the original draft, if received later, will be returned to the
Bank. The signature of the payee (and of the endorsee, (if any) must be
attested by his banker or by a respectable person other than the purchaser,
known or acceptable to the Branch.
a. Cancellation of Draft
The purchaser or his authorized agent shall make an application to the Branch
from where the DD sought to be cancelled was issued, along with the original
DD. Branch will verify the genuineness of the instruction from the original
application of purchase. On satisfaction of genuineness of the instruction a
transaction process is initiated using DDC menu option and DD amount less
Cancellation charges, if any, is refunded to the purchaser by a mode of
payment as requested and as per Banks norm. It may be noted here that
only the issuing Branch can cancel the DD.
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21. Stale Draft
A DD becomes stale after three months from the date of issue. The system
automatically marks it as stale.
a. Draft Account
There will be only one account for DD across the bank namely,
00980124011111
24. MISUSE OF BANKING CHANNELS FOR VIOLATION OF FISCAL LAWS AND EVATION OF
TAXES-
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The Reserve Bank of India has decided in consultation with the Government of India and
Indian Banks Association that in order to curb the misuse of Banking Channels for
violation of fiscal laws and evasion of taxes, demand drafts, mail transfers, telegraphic
transfers and travelers cheques for Rs.50000/- and above should be issued by Banks
only by debiting the customers account or against cheques or other instruments
tendered by the customer and not against cash payment. Similarly, such payment of
Rs.50000/- and above should be made through Banking channels and not in cash.
Demand Drafts & Pay Orders for Rs.50000/- and above should strictly be issued by
debiting customers A/c or against Cheques only. In no case Drafts/Pay Orders of
Rs.50000/- and above are issued against tender of cash even by splitting the amounts in
favour of the same beneficiary, purchased by the same purchaser.
No Drafts/Pay Orders should be issued against Inter Branch Credit in Transfer mode.
This will be in violation of Head Office Guidelines issued on the strict prohibition made by
Reserve Bank of India
IN NO CASE SINGLE DRAFT AMOUNTING TO RS 10.00 LAKH (RUPEES TEN LAKH) AND
ABOVE SHOULD BE ISSUED IN A SINGLE DRAFT LEAF. FOR ISSUANCE OF DRAFTS FOR
AMOUNT OF
RS.10.00 LAKH & ABOVE, MULTIPLE DRAFTS MAY BE ISSUED TO COVER THE TOTAL VALUE
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