5 tips on banking

1.Deposits and withdrawals

Today, you no longer have to visit the bank branch in which your account is domiciled to make deposits or withdrawals. All commercial banks provide you the convenience of making deposits to and withdrawals from your account at any branch of your bank. In the case of an unusually large deposit you may be requested to declare the source of funds and where necessary provide documentary evidence of it. 

Most commercial banks now provide the facility to deposit cheques after business hours while some provide for cash deposits as well. However the bank retains the right to process only the amounts as determined by them where the deposit ticket indicates a different value. Certain banks provide the facility to make cash deposits through their ATMs as well.

2.Cheque books

The bank issues a cheque book usually containing 20 or 25 leaves at the time of opening a current. Further cheque books will be issued by the bank on request as and when required. A request can be made through any branch of your bank requesting for the cheque book to be ready for collection at a branch of your choice or for dispatch by registered post. 

It is your responsibility to ensure that your cheque book is kept in a secure place when not in use and locked in a safe secure cabinet overnight. Failure to do so may result in the bank holding you liable for any authorised use of your cheques. In the event of you calling over at your bank for a cash withdrawal without bringing your cheque book, you may purchase a loose cheque leaf from the bank for that purpose for which a charge will be levied by the bank. 

3.Validity of a cheque

Normally a cheque is considered valid for payment if it is presented to the bank on which it is drawn within six months of the date of issue. Any cheque presented thereafter will be returned by the bank with the remark ‘Stale Cheque’. You as the drawer of the cheque may restrict the validity period further by inserting a shorter period of validity on the face of the cheque, usually at its top right hand corner.

4.Stopping payment 

of a cheque

You may instruct your bank to stop payment of a cheque. The bank is required to act on the instructions immediately provided the cheque has not already been paid. Stop payment instructions must be given in writing or by using an authentic electronic channel such as internet banking, telephone banking or mobile banking facility to which you have subscribed. In the event of your making such request by telephone, email or any other unauthenticated mode, and the cheque is presented to the bank, the bank may not stop payment but postpone payment pending receipt of your authenticated instructions which you must furnish the bank immediately. 

Banks levy a charge for stopping payment of a cheque. In the event of the balance in the current account is insufficient to meet the cheque that is being stopped, the bank may charge a higher fee to discourage you from stopping payment of cheques when the you are unable to fund the account in time. Frequent stopping of payment of cheques may lead to the bank deciding to close your account after giving sufficient notice to you. Your bank also expects you to remove the stop as early as possible.

5.Forgeries and fraudulent alterations

A bank will not honour your cheques containing any alterations unless they are authenticated by you by placing your full signature against such alterations. It is prudent to issue a fresh cheque without making any alterations in the amount of a cheque to avoid the value of the cheque being raised fraudulently. Cheques are printed on security paper to make any alteration apparent. Therefore please refrain from using any soiled cheques to avoid any fraudulent alterations. 

Care should be exercised in sending cheques by post. Crossing such cheques to prevent cashing it over the counter and sending it under registered post are precautions that you can take. If you are aware of any authorised use of your cheque book you must report same to the bank immediately. Failure to do so may result in you being held responsible for such drawings as well as any fraudulent drawings thereafter.

 (Please note that this is based on current practices and may vary from bank to bank)