e-Circular

SYSTEMS AND PROCEDURES.

Sl. No. : 852/2014 - 15
Circular No. : NBG/S&P-SP/9/2014 - 15
Saturday,October 18,2014.
.

The Chief General Manager,

State Bank of India,
Local Head Office,
All Circles.

S&P/VK/238 Date: 17.10.2014

Dear Sir/Madam,

BANKER CHEQUE OUTSTANDING MORE THAN THREE YEARS

TRANSFER TO CHARGES ACCOUNT

As per extant instruction, “all Banker’s cheque (BC) issued by debit to charges
account and outstanding for more than 3Yrs, are to be transferred to Charges
Account annually.”

2. As a regulatory guideline, the Banker’s Cheque, so transferred to charges

account, is to be treated as contingent liability.

3. Therefore, It has been decided by the competent authority as under:

(a) There is no change in the existing instruction of banker’s cheque required

to be transferred to charges account.

(b) The Banker’s cheques mentioned in 3(a) are also to be parked in the
under noted contingent liability-BGL account and proforma BGL account.

i) “Bank’s Liabilities for Banker Cheque more than 3 years and credited to
Charges account”(BGL Ac-3199924) (for Credit) : Individual credit entry of
banker’s cheque will be put through on the basis of particulars relating to
Banker’s Cheque number, date of issue and amount of each individual
BC credited to Charges account.
 ii) “Bankers Cheque Outstanding more than 3 yrs and credited to Charges
Account” (Proforma BGL Ac-3199925) (for Debit): The consolidated
amount of banker’s cheque, which is credited to BGL account 3199924,
will be put through by debiting to the proforma BGL account (3199925).

4. Reversal of contingent liability:- In case of any claim, the amount of the

relative Banker Cheque will be paid to the claimant by debit to Charges
account and the under noted reversal contra entries will be posted by the
branch for the claim amount:

Debit BGL A/c 3199924- Bank’s Liability for Banker Cheque more than 3 Yrs
credited to Charges account.

Credit BGL A/c 3199925 Banker Cheque Outstanding beyond 3 Yrs

credited to Charges Account (Proforma).

The Balance outstanding in the proposed proforma accounts would be equal

and would represent cumulative balance of Banker Cheques more than three
years and credited to Charges Account

5. Kindly advise the branches/operating units under your control

accordingly.

Yours Faithfully,

Sd/-

For Dy. Managing Director &

Corporate Development Officer