(vii) The signature of the drawer (depositor) on the cheque tallies with his/her specimen available in the FINACLE CBS Software.

(viii) In case of joint-A account, the cheque has been signed by all the depositors and signatures of all of them are tallied with that in the system.

Note 1: The facility of withdrawal by cheque will be permissible in all types of accounts except in an account (i) opened and operated by a minor himself (ii) on behalf of person of unsound mind. In all other types of accounts viz. Single account, Joint account and minor account operated through the guardian this facility is permissible.

Note 2: At the time of withdrawal from a minor account opened through guardian, the following certificate is required to be given by the guardian on the reverse of cheques:-

“Certified that the amount sought to be withdrawn is required for the use of Shri/Kumari.............who is minor and is alive this day”.

(b) If cheque is found to be in order as per above checks then cheque should be processed as per following guidelines based on the type of cheque:-

(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 any one of the means mentioned in Rule 11 below will be required.

It 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. But this does not mean that the bearer cheque can be paid without any precaution. If there are reasons to suspect the bonafide of the person presenting it, enquiries may be made, and identification obtained.

Note: Cheque is 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.

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.

Note1:- 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.

Note 2:- In case the person claiming payment of a cheque is required to establish his/her identity through an identifier, 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:

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

Note 3:- 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 in form (SB-105) stating the reasons why the cheque is being returned unpaid. The form will be signed by the postmaster.

Note 4:- Whenever the balance in an account falls below Rs.500/- as a result of any withdrawal, system will throw an error and will not allow withdrawal. The Postmaster should apprise the depositor of the position.

(e) Allowing withdrawal through Post Office Savings Bank (POSB) Cheques: 

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

(i) Process by Counter Assistant: - 

Once satisfied that cheque in genuine and signatures are tallied with the signatures available in the system, Counter PA should put his/her signature in red ink below the depositor’s signature in token of having tallied the signature. He/She will make necessary entries of withdrawal in the account by using CTM menu in the FINACLE CBS Software. Transaction ID generated by CBS Application should be noted on the right-hand upper corner of cheque as prescribed for SB-7 in red ink. Same procedure should be followed as prescribed for withdrawal through SB-7 up to the amount Rs.5000/-. If amount exceeds Rs.5000/-, then POSB Cheque should be handed over to Supervisor for verification and approval.

(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 the system.

(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 or write the word “Pay Cash” and sign in full in red ink in token of having authorized payment.

Supervisor should open CTM menu in CBS with his/her own login ID and enter Transaction ID mentioned on the cheque. He/She will validate the withdrawal in the CBS Application as prescribed for withdrawal through SB-7 and return the cheque to counter PA for making payment. Counter PA will pay cash to the depositor or bearer of the cheque and either write or impress with the rubber stamp as “Paid Cash”. If it is a bearer cheque, signatures of bearer should be obtained on the back side of the cheque.If the withdrawal amount is below Rs 5000/- Counter Assistant can pass the warrant. 

Procedure prescribed for Inward Clearing in Appendix-III should be followed, for the cheques received through Inward Clearing.