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K.S.C. Apex bank Ltd. shall have the right to suspend/dismember any member of IMAS by giving 30 days prior notice indicating the reasons thereof if the bank is persistently defaulting in the maintenance of the funds or not adhering to the directives of the IMAS. Issue and Honouring of DD All member banks shall draw MICR DDs/cheques on K.S.C. Apex Bank Ltd., Head Office Branch only. In other centers, as far as possible, DDs should be drawn on a member of the local clearing house. DDs should be written neatly in English with carbon sheet kept below the DDs and signed by 2 signatories. Alteration, if there is any, should be tested with full signatures with there code number allotted. Punching of the cages should be done to prevent fraudulent alteration of the amount of the DDs. The issuing bank should punch the number of the amount in figures on the exact cadge. Safety stickers may be pasted on the DD amount in figure to avoid any alterations. Limit for issue for Group ‘A’ is Rs. 5 Lakh, for Group ‘B’ it is Rs. 3 Lakh, and for Group ‘C’ it is Rs. 1 Lakh. The limits indicated are for aggregate of the DDs to be issued in a day by one member on the other bank. The drawing power of a bank under Group ‘A’ shall be Rs. 5 Lakh per day, under Group ‘B’ Rs 3 Lakh per day and under Group ‘C’ Rs. 1 lakh per day. Cancellation of DD The issuing bank should obtain a letter from the purchaser of the DD and intimate the paying bank and the paying bank on receipt of the letter (Form 5) must verify if the DD has already been paid, if not, stop payment should be noted and intimation should be sent to the issuing bank.
Mail Transfer and Telegraphic Transfers A member bank can issue a mail transfer for crediting to the account of a customer at another member bank. Telegraphic transfer includes transfer of funds by TT through SBI/SBM/SBH/ HDFC. The bank sending the TT should record the details of the TT sent in a TT register. The pending items of the TT should be followed up promptly by the concerned bank. Collection of Cheques and Bills The Cheques and Biills drawn on different centers can be collected through a member bank at par. The proceeds of the Cheques tendered by the customers are to be credited to their accounts and unpaid instruments should be returned immediately. The collecting bank/branch on realization of Cheques/Bills shall send the realization advice (Form No. 9) to the K.S.C Apex Bank Ltd. for credit to the account. Maintenance of Current Account Each member bank should maintain a current account with the head office branch of K.S.C. Apex Bank Ltd. and all transactions under IMAS should be done through this account. The member banks should maintain sufficient balance in order to meet the daily transaction under the scheme and Overdraft facility of not less than Rs. 20 Lakh on the security of fixed deposits with the head office branch of K.S.C. Apex Bank Ltd. The interest applicable to clean OD shall be charged at the prescribed rate. If any member bank avails OD without sanction limit continuously or exceeds the limit sanctioned for long periods, K.S.C. Apex Bank Ltd. has the right to remove such members from IMAS after giving prior notice. Each member bank should maintain DD issue registers, DD cancellation registers, stop payment registers, Bills for collection registers and TT issue registers. K.S.C. Apex Bank Ltd. shall conduct reconciliation meetings of all the member banks every quarter to eliminate the pending entries.
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