UCO Bank launches 'Pre-funded Cheque'; revolution in banking

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New Delhi, Sept 2 (UNI) In what may be construed as a revolution in customer service, UCO Bank today became the first bank in the country to launch 'Pre-funded Cheques', which are backed by pre-arranged funds kept in a seperate saving or current account of the customer.

''This will ensure that there is no scope of dishonour of the cheque on account of insufficiency of funds,'' UCO Bank CMD S K Goel said here.

The uniquely attractively designed colourful cheques were lauched by Mr Arun Ramanathan, Secretary Financial Services, Ministry of Finance.

Mr R Gandhi, Regional Director, RBI was present on the occasion.

Elaborating on the advantages of the new facility, Mr Goel said a customer will drive double benefit from opening of pre-funded cheque account.

First, he will earn applicable interest on funds kept in the saving bank account and secondly, he will save on commission normally incurred on issuance of demand draft, travellers cheque, manager's cheque or gift cheque.

Pre-funded cheques are issued in three pre-determined denominations--upto Rs 1,000, Rs 5,000 and Rs 10,000 in cheque books, containing 10 leaves.

These cheques are drawn payable at par at all CBS branches of the Bank.

The service charge will be levied upfront at Rs 100 per cheque book of 10 leaves for Rs 10,000 denomination and Rs 50 per cheque book of 10 leaves for denominations of Rs 5,000 and Rs 1,000.

In a message read out on the occasion, Finance Minister P Chidambaram said this effort is yet another example of how the banking sector and the PSU banks are responding to the challenges of competition.

''I am confident that this and similar efforts will spur the entire sector into offering better and more value-added products ultimately resulting in a win-win situation for both the banker and his clients,'' Mr Chidambaram said.

UNI MP GS UCS2006

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