IMPORTANT TERMS AND CONDITIONS – CA

MOST IMPORTANT TERMS AND CONDITIONS (MITC) CURRENT ACCOUNT

Current Account:

• Means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or upto a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit.

Account opening:

• The Account opening formalities are governed by the policies of the Bank and may be revised from time to time. The Bank may require Customer/s to submit duly filled in application form/s along with the prescribed set of documents stipulated from time to time, to the satisfaction of the Bank.
• An individual or a firm should have only one Account and should disclose details of other accounts with other branches/banks.
• While opening current accounts of entities enjoying credit facilities from the banking system, Bank would make use of the information available in CRILC (Central Repository of Information on Large Credits) set up by RBI, with a view to have credit discipline especially for reduction in NPA level in banks and shall not limit due diligence to merely seeking NOC from the bank with whom the customer is supposed to be enjoying the credit facilities as per his declaration.

Style of Account:

• An Account may be opened in the names of a) An individual in his / her own name; b) Two or more individuals having contractual capacity may open a joint account in their names. c) Sole- Proprietorship Firms, Partnership Firms, Limited companies, Hindu Undivided Family Firms, Trusts, Executors / Administrators, Government / Semi-Government / Local Bodies, Associations, Societies, Liquidators, Receivers, Agents on behalf of Principals, Accounts (and related Services availed of from time to time) in the names of a company, partnership firm, trust, association or other entity shall be operated by the authorized signatory(ies) of the respective entities, as specified in the AOF / resolution submitted by such entity at the time of opening the Account or as varied in accordance with these terms and conditions. Changes in authorised signatories of such entities shall be recognised only upon due submission of the requisite authorizations / resolutions approving such changes, to the satisfaction of the Bank.

Operations in Account:

• While opening joint accounts, clear mandate regarding operations in the account should be provided. Such mandate may be
  • operation jointly by all persons.
  • operation by two or more persons jointly.
  • operation by either of them.
  • operation by either or survivor.
  • operation by former or survivor/s.
• It should, however, be noted that the mandate, other than “Operations Jointly by all” given by the account holders is valid only for the normal / ordinary transactions in the account. For exceptional transactions, consent from all the joint account holders is necessary. Deposit of amount and withdrawal of amount in a deposit account or taking payment of Term Deposit on or after maturity are regarded as normal transactions. Opening of account, closing of account, loan/ overdraft against deposits, pre-mature payment of term deposits, lodging security for advance and / or taking delivery of security after adjustment of advance are exceptional transactions for which consent of all the depositors is necessary. The consent of all the depositors should be provided either at the time of opening of the account or as and when there is a request for such transactions.

Validity of Mandate:

• The mandate given by the joint account holders is valid during the life time of all the joint account holders unless a contrary intention is apparent. Thus, the mandate to permit operations in the account “by either of us” or “by any two (out of more than two) of us” will stand terminated upon death of any of the joint account holders. But in case the mandate permits operations in the account by “Either or Survivor/s ” or “Former or Survivor/s” the balance in the account can be paid to survivor/s after death of one of the joint account holders. However, loan against term deposits and / or before maturity payment of term deposits are not covered by such mandate.

Other delivery channels:

• Our ATM card services may be availed for anywhere, anytime, hassle free banking and our Internet banking, Mobile banking services may be used for banking from the comforts of the customers Office/residence.

Minimum balance to be maintained:

• A minimum quarterly average balance of  Rs.5000 and Rs.2500  is to be maintained for ordinary current account in Metro / Urban and Semi Urban / Rural centres respectively.. The definition of quarter for this purpose is from January to March, April to June, July to September and October to December. Failure to maintain the required minimum average balance would result in levy of service charges as prescribed from time to time.
• For specialized Current Account product with value added services, minimum monthly average balance to be maintained depends upon the variant chose and varies from Rs.50000 to Rs.500000.

Deposits of Cash and Cheques:

• All deposits to current accounts should ordinarily be accompanied by paying-in-slips which are supplied to depositors. Separate paying-in-slips should be used for deposit of a) cash, b) cheques drawn on the branch where the account is maintained, c) cheques drawn on other branches of the bank, d) cheques drawn on local clearing banks, e) cheques on outstation branches/banks and f) Bills and other collection items. Customers are required to cross the cheques deposited for the credit of their accounts before handing them over for collection.
• A remittance for credit of an account can be made by letter under special circumstances. The remitted should indicate the account number and name, for which the credit is intended.

Issue of Cheque Books:

• Cheques must be drawn on Bank’s printed cheque forms only, supplied by the Bank. The Bank reserves the right to refuse payment of cheques drawn otherwise.
• An application for a cheque book must be made personally in writing on the printed requisition form supplied with each book. MICR cheque books will be issued at a cost computed at Rs.5 per cheque leaf. Personalised cheque book would be issued on receipt of requisition and sent through post to the address available in the Bank records.
• It is the responsibility of the depositor to ensure safe custody of the cheque book supplied to him/her and that cheque leaves are not stolen or mislaid or fraudulently used.
• Cheques compliant with CTS-2010 standards only are to be used and it should be ensured that the account has enough funds to honour cheques issued/ ECS mandate given. Return of cheques in clearing will attract penalty as specified by Bank from time to time.
• The Bank may, at its sole discretion, reject any request for issue of more than one cheque book at a time, unless sufficient reason is shown for such request.

Operation by cheques:

• The Bank reserves to itself the right to refuse payment of cheques which have been altered in any way unless the alteration is authenticated under the drawer’s full signature.
• The date, the name of the payee and the amount on cheques should be written clearly in indelible ink and in such a way as to leave no space for any subsequent additions or insertions of any other words or figures.
• Mutilated, post-dated and irregularly drawn cheques, as also cheques containing extraneous matter, may be refused payment. The signature of account holder on cheque should be uniform and must agree with the specimen signature furnished by him/her to the Bank.
• Post-dated cheques, i.e. cheques bearing a date subsequent to the date of presentation will not be paid. Cheques presented after the expiry of 3 months from the date of their issue will be considered as out of date or stale and payment thereof shall be refused.
• Paid cheques will not be returned except under special arrangements.
• Cheques must be drawn only against funds actually realised and credited to accounts. Under no circumstances should a customer presume that overdraft facilities will be allowed or drawings passed against cheques in course of realisation.
• It should also be clearly understood that Cheques issued by the customer which when passed, would cause a debit balance in the account for whatsoever reason, would be deemed by the Bank as an implied request and authority by the customer to the Bank to pass the cheques and allow such a temporary debit/overdraft and the passing of cheques whether at the discretion of the bank or otherwise or at the request of the customer, resulting in overdrafts in the account should not be construed as a regular arrangement for an overdraft facility.

Cheques and Bills for collection:

• All cheques and other instruments tendered for credit should be crossed. Cheques on clearing banks will be collected in accordance with the rules of the local clearing house.
• The bank undertakes on behalf of constituents the collection of cheques, hundies, bills, drafts, salary and pension bills etc. Cheques, demand drafts, bills etc., payable locally should be sent early in the day, so that if possible, they may be collected on the same day. Cheques, drafts etc., on local banks will be collected free of charge.
• If instruments taken for collection are dishonoured and returned, the bank does not undertake to give notice of such tendered the instrument until the succeeding day. The bank will have the right to debit the account for all items already credited to the account, which are subsequently returned or remain unpaid.
• Cheques, drafts etc., tendered for collection and credited to an account must not be drawn against until they have been realized. It must be distinctly understood that even though credit entries may have been made in the statement of account, should such credits be made up wholly or partly of cheques or other instruments under collection, the amounts so made up are not available for drawing until such cheques and instruments have been actually realized. Under no circumstances should a customer presume that drawings will be permitted against cheques in course of collection.
• Cheques and drafts and other instruments accepted for collection/ purchased/negotiated by the Bank will be forwarded for collection to the branches or the bank/another bank at the place at which the instruments are made payable entirely at the risk and responsibility of the account holder. The bank will be at liberty to make use of the services of any bank of its choice for collection and the bank so employed will be the agent for the account holder for the purpose of collection.
• The bank or the agent at its option will send for collection the instruments at the sole risk and responsibility of the account holder by ordinary or registered post at its discretion. The bank will not be responsible for any loss of the instruments in the course of such transmission.
• The bank may accept from the agency bank, cash payment instruments or mandates in exchange of instruments sent for collection, such mandates or exchange instruments will be collected solely at the risk and responsibility of the account holder.

Loss of instruments in transit:

• Customers are requested to send cheques, drafts and other valuable instruments by registered post lest they may be lost or stolen in transit. The bank will register instructions for stop payment from the account holder, relating to cheques issued by him and lost, stolen, etc.,.
• In case of cheque lost in transit or in the clearing process or at the paying bank’s branch, the bank will intimate the same to the notice of the customer immediately.
• The Bank will take care to get the proceeds of the cheques by contacting the drawee bank / branch and the customer will be informed about the possible delay in realization of cheques.
• The Bank will request the customer to obtain duplicate cheques and the bank will reimburse the reasonable expense incurred in this regard.
• Also the Bank will pay interest for delay / abnormal delay as follows :
  • Savings bank rate for the period of delay beyond 7/10/14 days as the case may be in collection of outstation cheques.
  • Where the delay is beyond 14 days interest will be paid at the rate applicable to a term deposit of the respective period.
  • In case of extraordinary delay (i.e. delays exceeding 90 days), interest will be paid at the rate of 2% above the corresponding term deposit rate.
  • In the event of the proceeds of cheque under collection is to be credited to an overdraft/loan account of the customer, interest will be paid at the rate applicable to the loan account, For paid at the rate of 2% above the rate applicable to the loan account.
  • The interest payments as given above shall be applicable only for instruments sent for collection within India.

Statement of Accounts:

• A statement of account shall be provided to the account holder/s on a monthly basis. Statement of account would also be provided at the request of the customer at shorter intervals also subject to levy of applicable charges, if any.
• Unless the constituent notifies the bank immediately of any discrepancy found by him / her in his/her statement of account, it will be taken that he / she has found the entries in the statement of account correct. It is also obligatory on the part of the constituent that any wrong credit entries found in the statement of account be immediately brought to the knowledge of the Bank, if it is not done so, then it will be considered as a breach of contract on the part of the customer and the matter would be dealt with accordingly. Statements are system generated outputs and requires no signature.
• Duplicate Statement of account:
  • If the statement of account is mislaid or lost, duplicate statement with entries will be supplied on request by the constituent at prescribed charges with latest entry. Additional charges as has been laid down proportionate to the copying work will be collected, if a copy of the account for an earlier period is required.
  • Account holder should carefully examine the entries in the passbook/statement of account and draw the bank’s attention to errors/omissions, discrepancies/ unauthorized/wrong entries. The customer would be bound by the entries if the bank does not hear from him within a reasonable time after receiving the passbook/statement of account. Silence of the customer/s would estop him from contesting the entries subsequently. The bank will not be responsible for any entries not authenticated under the initials of its authorized official. However, in exceptional situations where entries are manually made in the passbooks/statement of account in computerized branches, such entries would be valid, only if authorized by an official of the branch.

Standing Instructions:

• Standing instructions for remittances such as insurance premia, subscription for clubs etc., will be accepted by the bank subject to levy of charges decided by the bank from time to time. Such instructions continue to hold good until cancellation by the customer or closure of account or death of the customer or insufficient of balance for any single remittance. The bank will not be liable to the customer for any loss if standing instructions could not be carried out due to insufficient balance in the account or cancellation or for reasons beyond the control of the bank.

Inoperative Account:

• An account shall be treated as inoperative/dormant if there are no transactions in the account for over a period of two years. Further, for the purpose of classifying an account as inoperative, both the types of transactions i.e. debit as well as credit transactions induced at the instance of customers as well as third party would be considered.
• The customer would be informed atleast three months before the account is classified as inoperative /dormant and the consequences thereof and the Bank would endeavour to send an SMS/e-mail in this regard. The procedure to be followed for activation would be informed and no charge shall be levied merely because an account is inoperative/dormant or for activation of the inoperative account.

Service Charges:

• Service charges as fixed by the bank from time to time will be levied to the current accounts every half year or at such intervals as decided by the bank. The details of such service charges would be made available in the tariff of charges and also hosted on the Bank’s website.
• Accounts of Deceased Parties:
  • Individuals can avail nomination facility.
  • Appropriate forms for filing nomination (DA-1), cancellation (DA-2) and variation (DA-3) are provided on request.
  • In respect of deceased depositors’ accounts, the legal heirs/representatives will be allowed to operate the account, on recognition of the claim by the bank.

Interest:

• No interest will be paid on current accounts

Transfer:

• At the request of the account holder, current accounts may be transferred from one office to another office in India free of charge and on surrender of the unused cheque leaves.

Closure of Accounts:

• An account holder may close his current account and receive the balance in credit less incidental charges against his cheque on surrender of unused cheque leaves.

Trust Accounts:

• The bank does not recognise any trust. This means that sums when deposited with the bank for credit of an account are, in the absence of any notice or circumstance putting the bank on notice, presumed to be the property of the depositors and any claim of any other party, subsequently, to right, title and interest in the said deposit shall not be recognized by the bank and such a claimant could only look to the depositor for redress. This rule does not preclude the opening of Trust Accounts, at the discretion of the bank, so long as the fact of the trust is made clear and apparent at the time of opening such account.

Obligation of account holders:

• To prevent forgery, fraud etc., account holders should observe the following safeguards
• Count the number of leaves in the cheque books issued to them and draw the attention of the bank, if any cheque is found missing therein.
• Keep the cheque books in a place of safety under lock & key.
• Fill in the date, the name of the payee(in case of cheques) and the amount clearly in indelible ink and in such a way as to leave no space for any subsequent additions or insertions of any other words or figures.
• Strictly avoid giving signed blank cheques and not to allow the use of any cheque leaf from their cheque books by other persons and to confine the use of a cheque book to drawings only on the account for which it is issued.
• Use carbon paper when writing cheques, so that the impression of writing is made on the back side of the cheque.
• Cross the cheque unless cash payment is required. Crossing should be done in such a way that the crossing runs the whole width of the cheque. A furtherance of safeguard will be to include the words “Not Negotiable” along with the crossing.
• Confidentiality of customers
• The bank shall treat customer’s Personal
• See that their signatures correspond information as Private and Confidential. The exactly with the specimen supplied to the Bank.
• Authenticate under their full signatures customer’s information shall be revealed to the third party in exceptional cases only viz., a. where disclosure is made under for all alterations in withdrawal slips. The cheque or compulsion of law. b. where Disclosure is made under IT and other laws c.
• The cheques with alterations/ corrections other than date are not accepted for presentment in Cheque Truncation System (CTS).
• The depositor/s shall inform the Bank in writing in the event of change in Resident status under Foreign Exchange Management Act

Communication to and from banks:

• Every change of address of the account holder should be immediately notified to the bank in writing.
• All communications should be addressed to the bank and not to any officer of the bank personally.
• The bank reserves to itself the right to send cheques, discharge of bills, advices, letters etc., through ordinary unregistered post and the evidence of their being so despatched as in the bank’s records will be conclusive and binding upon the customers.

General Lien:

• The bank has a right to appropriate the deposits of customers towards satisfaction of any liabilities of such customers whether such liabilities be actual or contingent, primary or collateral and several or joint, at any office of the bank. Closure of account by bank
• The bank reserves its right to take steps to get the account closed, if frequent return of cheques for want of funds is observed. disclosure is made under Banking Regulation Act d. where there is a duty to disclose to public e. where there is an express or implied consent of the customer f. where interest of bank requires disclosure

Nomination facility:

• Nomination facility is available to the account holder. Nomination can be made at the time of opening of account or subsequently. It can also be cancelled / varied. At the time of opening of the account, the account holder has to specifically instruct the bank to that effect if nomination is not required. Similarly request should be made in case the name of the nominee is to be made available in the statement of account.
• Nomination shall be in favour of an individual only. Nomination can be made only in respect of deposit account held by individual (s) / sole proprietary concern. If the proprietary concern undergoes a change in constitution, the nomination made will stand cancelled.

Right to alter Rules:

• The bank reserves the right to alter or add to these rules at any time without giving separate notice to each account holder. An announcement of the change of the rules put up on the notice board of the bank will be considered as sufficient notice.
• A person having opened a current account shall be deemed to have read, understood and agreed to be bound by the rules as now subsisting or as at any time altered or added to.

NOTE: The above are only highlights of some of the Most Important Terms and Conditions (MITCs) applicable.