ISSUE OF POSB CHEQUE BOOK IN PO SAVINGS BANK ACCOUNTS 

 Availing cheque facility on PO Savings Account

The cheque facility on PO Savings Account is provided subject to the following conditions.:

(a) The depositor should be literate. If it is a Joint ‘B’ Account opened by an illiterate and literate depositor, the first depositor should be literate.

(b) The depositor should be able to sign in the running hand.

(c) Minimum balance of Rs.500/- is maintained in the Account.

(d) The depositors’ KYC is updated as prescribed in GSPR 2018.

Note: Cheque facility is not available for the Minor account operated by minor himself and for the accounts opened by person of unsound mind.

(1) The depositor who wishes to avail the cheque facility, cheque account can be opened if the depositor has already no other savings account.

If the depositor who has the savings account already can also avail the facility of withdrawal by cheque from his/her savings account, he/she will have to convert the existing ordinary account into a cheque account. For this purpose, he/she will have to fill in the prescribed form of application (SB-CQE-4) and present it at post office along with his/her passbook if he is an existing depositor or fill in application form (SB-AOF) along with KYC documents if he is a new depositor. The application form (SB-AOF) should bear the remark “For cheque account' in the relevant column.

(2) The Postmaster should satisfy himself that the applicant is eligible to have a cheque account and that the depositor’s KYC documents are available and updated.

Issue of cheque book in CBS Post Offices

(1)(a) New Account: -

Cheque Book is a valuable item. In Finacle this is called Inventory item. HO Supervisor will receive new cheque books from Postal Store Depot (PSD). Sub Office Supervisor will receive cheque books from Head Post Office (HPO). HO/SO Supervisor has to put it in the Double lock safe and later on hand over to counter assistants for issuing them to the customers. At the HO or SO Stock to be maintained in manual register also as per rule. After Migration to CBS all the stocks have to be entered in Finacle

i. Movement of inventory will first happen from (PSD) to Head Post Office (HPO). This will be maintained manually in a register.

ii. Head Post Office will move some of the inventory from ZZ-EXT (PSD) to DL-DL (Main Stock of HO). HO will send rest of the stock to Sub offices manually through account bag keeping a manual register.

iii. Sub office will also move the inventory from ZZ-EXT (Here HO) to DL-DL (Main Stock of SO) when received from HO.

iv. HO/SO will move the stock from DL-DL (Double Lock) to EM-Employee ID (Counter PA) when there is requirement.

v. At HO or SO where more than one Supervisor exists, Inventory items will be entered by one Supervisor and will be authorized by another Supervisor.

vi. In Single/Double/Triple handed office where only one supervisor is there,Inventory items will be entered and authorized by the same supervisor.

vii. Cheque Books given to counter must be split as it has been taken in a lot. Here no need to verify the splitting. The counter PA will spilt the stock using HISIA menu.

viii. The counter PA will issue the cheque book to the depositor by using HICHB menu and the same is to verified by supervisor

Note 1:- It should be ensured that the rubber stamp impression of the name of the Post Office on each cheque is quite clear. The stamp should use block letters. Where the name of the Office is that of a locality, it should carry the name of the town also.

Note 2:- The account number on cheques should be written by a rubber stamp before a cheque book is issued to a depositor. The rubber stamp should have changeable (rotation type) digits so that one Post Office will require only one rubber stamp. This procedure should be adopted in post offices where considered feasible and necessary by Head of the Circle. In other Post Offices, the Supervisor should ensure that account number is written on all the cheques before delivery of cheque book.

The supervisor should then hand over the passbook and the cheque book (with the account number noted on its cover) direct to the depositor after (a) obtaining his/her acknowledgment on the reverse of the application form and (b) making an entry of the cheque book in the stock Register (SB/CQE-3) noting the account No. in column (d) thereof.

(1)(b) Existing Account:-

In the case of an existing depositor the postmaster should after satisfying himself that the depositor's signature on the application (SB-CQE-4) agrees with the specimen or record, and obtain fresh KYC documents, if required and follow the same procedure as given above. He/She will impress the stamp “ISSUE CHEQUE BOOK” on the top of the application. The counter PA will convert the account using HACXFRSC menu and the same is to be verified by the supervisor or by other user. The Counter Assistant should also follow the same procedure as given above and impress on the cover of the cheque book and each page of the cheque with the rubber stamp indicating the full name of the Post Office where the savings account stands. The supervisor initial at places provided in the application and hand over the passbook and the cheque book (with the account number noted on its cover) direct to the depositor, after obtaining his/her acknowledgement on the reverse of the application and making an entry of the cheque book in the stock register of Cheque Books (SB/CQE-3) noting the account number in column (d) thereof.

Note:- See Notes 1 and 2 below sub para 1 (a) above. 

(2) At the end of the day, the application form (SB-AOF) for new account should be placed in the guard file. The application form (SB/CQE-4) taken form the existing depositor will be field in a separate guard file. The Postmaster should also see that the receipt for the cheque book sent by post is pasted on the application form (SB/CQE-4) as the case may be and its number is correctly noted in the remarks column of the stock Register of Cheque Books.

(3) Issue of fresh cheque book: On receipt of an application for a fresh cheque book in form (SB/CQE-4) at the counter, the counter assistant should satisfy himself that the signature of the depositor on the application agrees with the specimen on record and if there is any doubt in the matter, get the depositor identified by obtaining fresh KYC documents.

The counter Assistant should verify the account number and satisfy himself that the depositor has already used or nearly used all cheques of existing cheque book. He/She should then issue a fresh cheque book using HICHB menu in Finacle and pass the application to the Supervisor. The Supervisor will verify the correctness of the entries in the application satisfy himself that the depositor's signature on the application agrees with his/her specimen on record and also verify the entry made in Finacle. The Stock Register of Cheque Books should be maintained by him. The cover of the cheque book and each page of the cheques will be impressed with the rubber stamp indicating the name of the Post Office where the account stands. The cheque book will then be transferred to Counter Assistant for delivery to the depositor after obtaining his/her acknowledgement on the reverse of the application, the signature on the acknowledgement being verified with that on the application. The application will be kept by the supervisor in weekly or monthly bundles as convenient in his/her custody.

Note:- See Note 1 and 2 below sub para 1 (a) above.

Facility of despatch of cheque book by post

Whenever a depositor or guardian, desires to have a cheque book without visiting post office, cheque book may be sent by Registered Post at depositor’s expense. The following procedure should be followed:

i). On receipt of the request for issue of a cheque book either by post or through any messenger / authorised literate person of the depositor, the signature on the letter of request / SB-CQE-4 should be tallied with the specimen signature on record.

ii). The cheque book will be sent with a forwarding letter which will state the amount i.e. the cost of registered post which has been debited to his/her account.

iii). The warrant of payment for the amount should be prepared by Postmaster / Sub Postmaster and the receipt for the registered letter should be pasted to the warrant. The Registered Letter Number shall be mentioned in place of the signature of the depositor in acknowledgement portion of SB/CQE-4.

iv). The cost of registered post should be debited from the account with suitable remark using CTM Menu.

v). The registered article will be booked at POS Counter as ‘Cash Paid’ and the cash will be paid by the SB Counter Assistant.

Note: Cheque book will be issued only at the office where the account stands / Home SOL. If depositor requests for cheque at other than home SOL, the depositor may be advised to send the request to the Postmaster of the office where his/her account stands, by post.

Safe custody of Cheque Books:

(i) Cheque Books received from the stock depots will be entered in the stock register of SB Cheque Books (Form SB/CQE-3) which will be maintained by every Head/Sub Post Office. This stock will remain in the personal custody of the Postmaster in a safe and will be verified once a month personally by Head of the office under his/her dated initials. The issue of cheque books whether for the Head Office itself or for the Sub Office will be done strictly according to serial order and noted in the stock register with the account number and name of the sub office. 

(ii) In the Sub Office, the cheque books received from the Head Office should be kept in the personal custody of Sub Postmaster under lock and key until they are delivered to the depositor.

Procedure for Payment of Post Office Savings Bank Cheques:

(1) When a cheque on scrutiny is found to be in order in all respects, it may be paid as under:

(a) Order Cheques (Open Cheques (uncrossed))

(i) To the payee of the cheque.

(ii) If the cheque has been endorsed by the payee to another person to that person giving an endorsement in blank, i.e. signing the cheque without any specific endorsement.

(iii) If the cheque bears an endorsement in blank (signature) of the last endorsee and is presented by a bearer, to the bearer on his/her signing below the signature of the endorsee.

(iv) If the cheque is drawn or endorsed restrictively, e.g. “pay to X only” it will be paid to the person to whom payment is restricted. In every such case, satisfactory identification of the person receiving payment by a person known to Post Office Savings Bank will be required.

(b) Bearer cheques (Open Cheques (uncrossed): It will be paid to any person presenting it at the counter even if he is not the payee of the cheque. But this does not mean that the bearer cheque can be paid without any precaution. If there are reasons to suspect the bonafides of the person presenting it enquiries may be made and identification obtained.

Note: Cheque issued in the name of “Self” will be paid to any person presenting it at the counter even if he is not the payee of the cheque subject to the condition that depositor has also signed on the back of the cheque.

(c) Crossed Cheques :-

(1) A crossed cheque is not payable otherwise than to a banker. It can only be paid to or through a bank including Post office Savings Bank. These cheques should also be subject to the same scrutiny as other cheques except when a bank collects an order cheque on behalf of payee, the payee's endorsement in blank (signature) is not necessary.

(2) A bank collecting a cheque on behalf of its customer can obtain payment in cash from the Post Office Savings Bank irrespective of whether the cheque is an open or crossed one.

(3) In case the person claiming payment of a cheque is required to establish his/her identity, the identifier should record the following certificate on the back of the cheque and furnish his/her address below his/her signature to the certificate:

“Certified that Shri....................is known to me and that his/her endorsement on this cheque was recorded by him in my presence.”

(4) If the cheque presented for encashment does not satisfy all the required conditions, the cheque will be returned to the presenter along with a Cheque Return Memo printed through CTS Application or in form (SB-105), stating the reasons why the cheque is being returned unpaid. The form will be signed by the postmaster.

(5) Counter Assistant:- When the cheque is received by the Counter Assistant, he should put his/her signature in red ink below the depositor's signature after tallying the same with the specimen signatures available in office record. He/She should see that the serial number of the cheque tallies with one of the serial number of the cheques contained in the cheque book issued to the depositor. If the cheque is in order, necessary entries of withdrawal in the account may be made noting the cheque No. and date in the remarks column.

(6) The Supervisor should:-

(a) see that the cheque bears the signature of the counter assistant below the depositor's signature and tallies the signature of depositor with the specimen signatures available in Finacle.

(b) cancel the depositor's signature on the cheque by running a thin wavy line in red in ink through it in such a manner as to ensure that his/her signature is not obscured.

(c) impress the “Pay Cash” stamp across the face of the cheque and sign in full in red ink across the stamp impress in token of having authorized payment.

(d) After payment the cheque should be duly impressed with the rubber stamp “Paid Cash”.

(7) If cheque is received by post requesting for payment of the amount by money order less commission, the request should be complied with if the cheque is found to be in order in all respects.

(8) The Postmaster should, if the cheque is being returned unpaid, satisfy himself that the reasons for non-payment of the cheque are valid.

(9) If the cheque is to be returned as unpaid under objection it should be entered in the Register of Returned Cheques in the prescribed form (SB/CQE-9) before it is returned.

Procedure for Withdrawal in Sub Offices:

On presentation of cheque in a sub office for payment, the counter Assistant will scrutinize it and satisfy himself that it is order in all respects, that the drawer of cheque is the correct cheque account holder and his/her signature on the cheque agrees with the specimen on record. He/She will sign the cheque in red ink below the signature of the drawer and make the usual entries in the Finacle. He/She will then pass on the documents to the Sub Postmaster. The Sub Postmaster after satisfying himself that the cheque is in order in all respects will impress the special stamp “Pay Cash” on the face in the cheque under his/her signature which will constitute the warrant of payment. The transaction in all other respects will be treated as an ordinary withdrawal and communicated to the Head Office as usual except that the cheque with the order of payment of Sub Postmaster endorsed thereon will take the place of the warrant of payment. After payment, the cheque should be duly impressed with the rubber stamp “Paid Cash”. No separate list will be prepared of such transactions.

Closure and transfer of Cheque Accounts.

(1) If a depositor who has been permitted to take withdrawal by cheque closes his/her account or ceases to avail of the cheque facilities, the unused cheque leaves may be cancelled in Finacle using HCHBM menu and the supervisor has to verify the same. If the depositor has not used all the cheques contained in the cheque book in his/her possession, the postmaster should take over the cheque book containing the unused cheques, see that it contains the requisition form intact and keep in his/her custody. At the close of each day, the cheque books containing unused cheques received during the day should be entered in a list containing the following particulars:-

(a) Serial Numbers of unused cheques in each cheque book.

(b) The depositor's account number.

(c) Total number of cheque book.

The list together with the cheque books should then be forwarded to the SBCO.

(2) In the case of closed cheque accounts or where the depositor does not want to avail of the cheque facility, a note of unused cheques surrendered should be kept in Finacle.

(3) In case of closure of an account or where the depositor ceases to avail of the cheque facility. It should be handed over to SBCO along with voucher bundle after cancelling unused cheque leaves under the dated signature and designation stamp of the Postmaster/Sub Postmaster

(4) If the account is to be transferred to another Post Office (HO/SO) and if the depositor desires to have the cheque facility at the new Office as well, the transferring office will obtain the transfer application (SB-10 b) along with fresh KYC documents and effect the transfer. The depositor can continue to use the same cheques book at the new office.

(5) The unused cheque leaves in partly used cheque book surrendered for cancellation should be cancelled by the official-in-charge of the Control Organization and kept in his/her custody. These should be produced before the Accounts Officer, I.C.O. (SB) at the time of his/her inspection for destruction in his/her immediate presence.

Clearance of cheques: Standard Operation Procedure and Standard Accounting Procedure laid down in Appendix-III should be followed, for clearance of outward / inward cheques relating to POSB Transactions in CBS Post Offices.

 At station where cheque clearing is done by presenting at associated bank, the following procedure should be followed:

(1) If the cheques are presented at the Reserve Bank/State Bank, the Head Office will receive the same daily from the Bank. On receipt of the cheques, the Head office will scrutinize the cheques relating to H.O., verify the balance and if they are in order send an intimation to the RBI/SBI for payment of cheque on behalf of the Post Office. In respect of cheques relating to SB accounts at sub office, the Head Office will take action as described in para above.

(2) If the cheques are presented at the Head Office counter, the Head Office will take the following:-action. In respect of cheques for Savings accounts opened at the HO, they should be verified to see that they are in order before payment is made. In respect of cheque for Savings account standing open at sub office, the HO will take action as described in para above.

19. Cheques received for collection by POSB: Follow the procedure laid down in Appendix-III. The outstation cheques will be submitted for collection in the usual manner. The amount of these cheques should be shown in receipt column after its realization and the commission in the payment column of the scroll separately which will help in reconciliation of these figures.

Dishonoured cheques:

(1) Service Charges for a dishonoured cheque is collected at Rs. 100/- + GST per cheque. 

(2) Whenever a cheque lodged for credit in PO Savings Account is dishonoured, the service charges will be deducted from the Depositor’s account and accounted by Nodal Grid Office viz. Chennai GPO.

(3) If a cheque lodged for opening of account or credit in the accounts other than PO Savings Account is dishonoured, the service charges shall be collected from the Depositor in Cash or by debit from PO Savings Account through HGCHRG menu in Finacle.

(4) Whenever the Department of Posts enters into an agreement with another Government or a private organization for collection payment on its behalf by cheque for clearance and transfer of the cash proceeds to the concerned party, all such agreements shall incorporate a clause stipulating that the client of the Department shall be liable to reimburse to the Department of Posts service charges of Rs. 100/- + GST per dishonoured cheque received by it on its behalf besides the cost of postage incurred for return of such cheques to the client. These two charges will be in addition to any other service charges payable to the Department as per agreement between the Department of Posts and the said client for rendering the services agreed upon.

(5). Intimation to be sent to the depositor when cheque is not cleared: In the case of cheque not cleared for any reason, the Postmaster should also affix his/her signature on the rejection memo. A returned / dishonoured cheque with the objection may be kept in a guard book and the depositor should be informed immediately by ordinary post that the cheque has not been honoured specifying the reasons thereof and the depositor may be advised to collect it from the post office. The returned cheque with the objection memo may be delivered to the depositor after ensuring collection of service charges for dishonoured cheque and obtaining his/her acquaintance. For Branch office accounts, the intimation of dishonour cheque will be sent to BO by the Account Office.

MICR Code on Post Office Savings Bank Cheques

1). The MICR technology for clearance of cheques was introduced to facilitate the printing and supply to post offices. For printing MICR cheque books, 9 digit code is required to be given by Circle Office to ISP, Nashik.

2). MICR Code is allotted to Head Post Offices only. 

3). If MICR code is not available for any HO, the Heads of Circle will have to obtain MICR Code RBI. For this, the Postmaster / Head of the Circle will request the Bank holding local clearing house / RBI to allot 9 digit code for printing MICR Cheque books. The officer of that particular bank / RBI will allot last 3 digit number. The first three digit will represent the city code and the next 3 digit code will represent Department of Posts as a whole. For example, Sr. Postmaster Gurgaon HPO applied to the National Clearance Cell Branch of RBI for allotting 9 digit code for the purpose and has been allotted 110 111 011 (the first three digits i.e 110 represent City Pin Code in which NCC is located (in this case Delhi), next 3 digits 111 represent Department of Posts as a whole and last 3 digits 011 will be obtained from NCC/RBI).