DECCAN GRAMEENA BANK

ANNEXURE-III
Branches are advised to follow the following guidelines, where Postdated cheques are
obtained for repayment of PER advances.
i) NUMBER OF CHEQUES TO BE OBTAINED : Cheques to be invariably obtained for
covering the full repayment period. Cheques should be scrutinised to ensure that these are
properly filled in. The special “Crossing Seal” would be required to be put on the face of
the cheque before keeping them in custody.
ii)
iii)
iv)
DATE OF POST DATED CHEQUES : Date of cheques should synchronise with credit of
salary/rent etc., wherever payment of post-dated cheques is to be contingent upon such a
credit to the account. In other cases, where the deposit account of the borrower has
sufficient credit, atleast during the first fortnight of the month, the cheques should be dated
prior to the 7 th of every month.
The branches should put through the cheques on 4 or 5 fixed dates in a month, preferably
before 15 th of the month, so that the task is not spread over the whole of the month and
administration thereof does not dislocate the work.
DIARISATION : A suitable diary to be maintained for the post dated cheques obtained
date wise so as to ensure compliance promptly.
CUSTODY : Post-dated cheques should not be retained along with the security documents
to avoid unnecessary handling of documents. These should be retained by the Branch
Manager or Accountant and placed in a fire proof safe / locker.
v) HANDLING OF CHEQUES RETURNED UNPAID : Should any cheque be received
unpaid from the paying banker for want of sufficient funds, the borrower should be
immediately contacted. The cheque should be re-presented within a period of three days
of its having been returned unpaid on a written request of the borrower. In the event of the
borrower failing to deposit the amount of the cheque, the under noted procedure for
initiating legal action under Section 138 of Negotiable Instruments Act, 1881, should be
initiated:
Steps to be taken when a cheque is dishonoured on account of : (a) insufficient funds (b)
closing of the account (c) stop payment of the cheque (on account of insufficient funds).
STEP-1 : When the cheque is dishonoured the branch has to give a notice in writing to
the drawer within 15 days of the receipt of information by it from the bank regarding the
return of the cheque. Enter in the separate register for this purpose and monitor.
STEP-2 : If drawer fails to make the payment of the said amount of money to the bank
within 15 days of the receipt of the notice mentioned in Step-1, proceed to Step-3.
STEP-3 : File a complaint before the Metropolitan Magistrate or First Class Magistrate,
within one month from the date of cause of action.
Example : Cause of action arose of 01.01.2001, under Step-2 (that is failure to pay within
time mentioned there) file the complaint on or before 31.01.2001.
STEP-4 : During the pendency of the complaint if the drawer desires to compound the
offence, branch can withdraw the complaint on receipt of the amount of the cheque,
interest, legal cost and other expenses.
It may, however be noted that the initiation of legal action is a measure of last resort and all
efforts should be made to contact the borrower to regularise the position. However the one
month time limit shall not be allowed to be exceeded under any circumstances
(except under instructions from the Controlling Office).
ANNEXURE-IV
RBI INSTRUCTIONS TO IMPLEMENT DELHI HIGH COURT ORDERS ON HOUSING LOANS
Crl. ADV-79 12