Pre-funded Cheques

In order to help out and satisfy the need of our customers, the bank has introduced pre-FUNDED cheques with an upper limit inscribed on it to be used as gift cheques ; travelers cheques or as a normal cheque. The scheme shall operate in CBS branches only and such cheques are payable at par at all CBS branches.

The Facility is available to customers maintaining individual SB/CA account with us.

Cheque Feature:-

The cheques are printed as order cheques and attractively designed.

The cheques will be pre-funded.

The cheque books will be issued for a prepaid value of not exceeding Rs.10,000/- Rs.50,000/- / Rs.100000/- (i.e. cheque book containing 10 leaves - each leaf not exceeding Rs.1000/- ,Rs.5,000/- and Rs.10000/- )

Each cheque leaf shall bear a legend "Not over Rs.1000/- or Rs.5000/ or Rs.10,000/- "as the case may be.

A cheque book shall contain 10 leaves.

Normally one cheque book of a particular denomination shall be issued at a time. However, the depositor may request for another cheque book and bank may consider the requests .

The cheque shall not be valid for payment after 3 months from the date of issuance of the cheque book by the branch to the customer. The legend "Not valid after ................(date)" shall be printed on the cheques. The date to be entered by the branch shall be 3 calendar months after the date of issue of the cheque to the customer(s).

Product Delivery :

The product shall be delivered through CBS branches only and payable at par at all CBS branches .

Issuance of cheques

a An existing customer maintaining Current Account /SB Account can open a separate current account under this scheme with the same customer ID solely for the purpose of getting Prefunded Cheques. This account will be considered a supplementary account to the normal account and not a separate account.

b The account under this scheme will be exempted from Ledger Folio charges, Minimum balance charges and intersol transaction charges ( i.e. no charges will be levied to the account of the drawer of the Prefunded Cheques even if the cheques are paid by some other CBS branch ).

However, charges per cheque book of 10 leaves will be levied upfront @ Rs.100/- for cheque denomination of Rs.10,000/- and @ Rs.50/- for denomination of Rs.5000/- and Rs.1000/-.

c Prefunded Cheques will be issued on multiple occasions till the customer decide to discontinue the facility.

d Cheque-books will be issued for a prepaid value of not exceeding Rs.10,000/-, Rs.50,000/- and Rs.100000/- (i.e. cheque book containing 10 leaves - each leaf not exceeding for Rs.1000/- , Rs.5,000/- or Rs.10000/- as the case may be )

Stop Payment

The depositor can instruct stop payment of such cheques through any of the CBS branches and extant procedure for handling such request shall be applicable.  

Account closure

a) The customer may at any time opt to discontinue the Prefunded cheques facility and close the account. The supplementary account will then be closed and balance if any will be paid by pay order or crediting to the normal account.

b) At the time of closure of the account, it will be mandatory for the depositor to surrender all the unused cheque leaves.

c) In the event of depositor’s inability to surrender the unused cheque leaves due to certain reason, the Bank should be properly advised by the depositor not to honour such

cheques. Payment of the balance amount in the supplementary account in respect of such cheques shall be made after expiry of 6 calendar months from the date of issuance of the cheques as per the branch records and date entered on the cheque(s) indicating that the cheque(s) is/are not valid after that date.

Unused cheques

Such cheques which are not utilized within the validity

period may be surrendered and fresh cheques may

be got issued on payment of applicable charges.

Service charges shall be levied upfront @ Rs.100/ per cheque book of 10 leaves of Rs.10000/- denomination and @Rs.50/- per cheque book of 10 leaves for Rs.5000/- and Rs.1000/- denominations. Actual Courier Charges shall also be recovered additionally. 

Banker Customer Relationship

 There are various kinds of banker- customer relationship. The important among them are as below:

1.    Debtor-Creditor Relationship : When a customer deposit money in the Bank, the Bank is Debtor and the Customer is  Creditor

2.    Creditor – Debtor Relationship: When a customer lends money from a Bank, the Bank is treated as Creditor and Customer as Debtor.

3.    Bailee-Bailor Relationship: In case of Safe Custody Services provided by banks, Bank is said to be a Bailee and the customers are called as Bailor.

4.    Trustee and Beneficiary Relationship: In case of Payee of Draft, the bank is trustee and the customers are beneficiaries.

5.    Lessor and Lessee Relationship:  In case of Locker facility, the Bank is said to be the Lessor and the customer is called as the Lessee.

6.    Pledgee and Pledger Relationship: In case of Pledge, the relationship between banks and customers becomes Pledgee and Pledger respectively.

7.    Mortgagee and Mortgagor Relationship: In case of Mortgage, the relationship between banks and customers becomes Mortgagee and mortgagor respectively.

8.    Assignee and assignor Relationship: In case of Assignment, the relationship between banks and customers are said to be assignee and assignor respectively.

9.    Agent – Principal Relationship: When banks collect Cheques, Bills etc or Pay Electricity bills, insurance premium, telephone bills, club fees etc, the relationship established between banks and customers are known as agent and principal respectively.

10.  Bank as Consultant: Banks these days help the customers by rendering consultancy services and advice. Hence, banks act as consultants.

Use of Hindi in Public Sector Banks

Use of Hindi in Public Sector Banks is governed by the Official Languages Act (OLA), 1963 (as amended in 1967) and the Official Language Rules (OLR), 1976 (framed under the Act by the Ministry of Home Affairs, Department of Official language (DOL), Government of India (GOI). As provided under the Act and Rules, GOI, Ministry of Home Affairs, DOL prepares the broad guidelines and also the annual programme for progressive use of Hindi. Monitoring the progress in use of Hindi in Public Sector Banks is done by the Department of Banking Operations and Development (DBOD), Central Office, Reserve Bank of India. At the instance of GOI, Ministry of Finance (Banking Division), an Official Language Implementation Committee (OLIC) of Public Sector Banks, with the Chief General Manager of DBOD as its ex-officio Chairman and Senior Executives of the rank of General Managers of Public Sector Banks as members, has been constituted in 1976; it reviews the progress in implementation of the Official Language Policy (OLP) through the quarterly meetings.

List of items of work which could be done in Hindi on computers:

1. Correspondence

2. Various items of Management Information System

3. Name boards /plates

4. Various items of Section 3 (3) of the O. L. Act

5. Training material (including PowerPoint Presentations)

6. Salary slips and salary sheets

7. Welcome letter to new account holders

8. Letter of thanks to introducer of new account holders

9. Entries in pass books

10. Statement of account to customers

11. Work related to payment of various bills and allowances

12. Meeting advices, agenda and minutes

13. All Establishment and Staff related work

14. Advices relating to Group Insurance

15. Policy Guidelines

16. All types of publicity material

17. Periodical reports

18. Returns

19. Branch Banking

20. Reminder for loan recovery

21. Provident Fund and Pension details

22. Loan sanction advices

23. Banker cheques and drafts

24. Payment orders/ deposit orders

25. Fixed Deposit Receipts

26. Deposit maturity advices

27. Preparation of cheque list

28. All written communications regarding branch officers meeting with customers

29. Demand drafts

30. Memo of cheque returns

31. Increasing progressively the material displayed in Hindi on websites

32. Emailing in Hindi (Devanagari) on Internet and through corporate e-mail

33. Credit processing notes

UCO Bank’s Anti Money Laundering Policy

UCO Bank’s Anti Money Laundering Policy is in operation since 20.11.2002. KYC guidelines are important features of the policy. The main provisions of the policy are summarized below.

OBJECTIVES: –

1. To protect the Bank from being used for money laundering.

2. To adhere to the internationally accepted “Know Your Customer” policies and procedures in the day to day business.

3. To take appropriate action when suspicious activity is detected and to report to the designated authorities.

4. To comply with applicable laws as well as norms adapted internationally by banks and financial institutions as per the “forty recommendations” of FATF.

5.  Employees will conduct themselves in accordance with the highest ethical standards.

6. They should not knowingly provide advice or other assistance to those who indulge in money laundering.

7.  Employees who suspect money-laundering activities should refer the mater to Anti Money Laundering compliance officer. There shall be one identified compliance officer in each branch and in each Regional Office.

8.  “Know Your Customer” is an integral part of Anti Money Laundering policy.

SPECIAL DEPOSIT SCHEME FOR SENIOR CITIZENS

•           Persons of more than 60 years are called Senior Citizens.

•           Their date of birth is to be verified at the time of opening of new a/c or at the time of renewal of deposit. Subsequent verification is not required.

•           Documents from which the date of birth will be verified are SLC, LIC policy, Vote Identity Card, PPO.Birth certificate, Passport or Any other document acceptable to bank.

•           Incentive on rate of interest on FDR on or after 14.05.2001 or renewal after 14.05.2001 is available ( as per ROI= rate of interest, issued time to time)

•           For staff & ex-staff, Staff & ex staff senior citizen for TDR >180days it is 1.0 &1.25 respectively.

•           Incase of ex staff senior citizen –INCENTIVE RATE- shall be equal to his terminal benefits + Rs.10 lacs.

•           Event of death of senior citizen the deposit automatic transfers to nominee

•           No penal interest will be levied for premature with drawl of TDR on applicable interest rate.

•           Free remittance facility is available up to Rs5000/- with out any commission provided the remittance is routed through the SB/Current a/c of the senior citizen.

ANTI MONEY LAUNDERING

Money laundering is a process whereby proceeds of illegal activities are converted into legitimate money through a series of financial transactions. In layman’s language, it is the process of converting black money into white money.

HOW IS MONEY LAUNDERED?

Money laundering is done through any financial transaction or a series of financial transaction that seeks to conceal the nature or source of proceeds derived from illegal activities. Usually, it involves three stages which are as follows: –

1) Placement: In this initial stage, the launderers try to physically dispose off the cash. This is done by reducing large amount into smaller chunks and depositing them in different accounts or other financial institutions.

2) Layering: In this stage, the proceeds are separated from the source through the use of layers of financial transactions. The layers are well designed to hamper the audit trail, disguise the origin of funds and provide anonymity. Examples of layering are: – premature payment of fixed deposits without regard to penalty, early surrender of annuity, purchase and sale of investment wise transfers disguising as payment of goods and services.

3) Integration: In the final stage, the laundered money is brought back into the economy so as to make it apparently legitimate fund. Examples are: – Investment in real estate, luxury assets, business venture etc.

Usually money laundering takes place in places other than where it has originated and in countries where anti money laundering act is not there or is not very strict

Properties of Money

1)         Money Serves as a Medium of Exchange:

-           A medium of exchange is the property of money that exchange is made through the use of money.

2)         Money Serves as a Unit of Account:

-           Unit of account is the property of money that prices are quoted in terms of money.

-           Money provides a convenient measuring rod when prices for all goods are quoted in money terms.

-           Money can be used to compare the relative value of goods, making it easier to carry out economic transactions.

3)         Money Serves as a Store of Value:

-           Store of value is the property of money that it preserves value until it is used in an exchange.

-           From the time you receive a payment until the time you make payment; you can use money to store value.

# What borrowers want?

-           Long term loan

-           Minimum Interest 

-           Minimum risk and transaction cost

# What lender wants?

-           Maximum liquidity

-           Maximum return

-           Maximum risk and transaction costs

# Money Market- The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage-backed and asset-backed securities. It provides liquidity funding for the global financial system.

# Net worth - The amount by which assets exceed liabilities is called net worth. This term can be applied to companies and individuals or is the difference between assets and liabilities.

(Source-Internet)

Important Abbreviations

ABCP – Asset Backed Commercial Paper

ABS – Asset-Backed Securities

ACMA – Automobile Components Manufacturing Association of India

AD – Authorised Dealer

ADF – Augmented Dicky Fuller

ARM – Adjustable Rate Mortgages

BCBS – Basel Committee on Banking Supervision

BIS – Bank for International Settlements

BoP – Balance of Payments

BPO – Business Process Outsourcing

CAD – Current Account Deficit

CBRG – Cross-Border Bank Resolution Group

CBO – Congressional Budget Office

CDOs – Collateralised Debt Obligations

CDS – Credit Default Swaps

CESR – Committee of European Securities Regulators

CFPA – Consumer Financial Protection Agency

CMBS – Commercial Mortgage-Backed Securities

CP – Commercial Paper

CPI – Consumer Price Index

CPFF – Commercial Paper Funding Facility

CPSS – Committee on Payment and Settlement Systems

CRAs – Credit Rating Agencies

CRAR – Capital to Risk-Weighted Assets Ratio

CRR – Cash Reserve Ratio

CVD – Countervailing Duty

EC – European Commission

ECB – European Central Bank

Ecofin – Economic and Financial Affairs Council

EMEs – Emerging Market Economies

EMPI – Exchange Market Pressure Index

ESF – Exogenous Shock Facility

ERM – Exchange Rate Mechanism

ESFS – European System of Financial Supervisors

ESRC – European Systemic Risk Council

FASB – Financial Accounting Standards Board

FBT – Fringe Benefit Tax

FCL – Flexible Credit Line

FDI – Foreign Direct Investment

FDIC Federal Deposit Insurance Corporation

FHCs – Financial Holding Companies

FHLMC – Federal Home Loan Mortgage Corporation

FIIs – Foreign Institutional Investors

FIPB – Foreign Investment Promotion Board

FSI – Financial Stress Indicator

FNMA – Federal National Mortgage Association

FSA – Financial Services Authority

FSCS – Financial Services Compensation Scheme

FTC – Federal Trade Commission

GAAP – Generally Accepted Accounting Principles

GDP – Gross Domestic Product

GECC – Global Economic Co-ordination Council

GFD – Gross Fiscal Deficit

GFSR – Global Financial Stability Report

GIMF – Global Integrated Monetary and Fiscal

GPRF – Global Food Crisis Response Programme

GSDP – Gross State Domestic Product

DTA – Domestic Tariff Areas

HFCs – Housing Finance Companies

HP – Hodrick-Prescott

HKMA – Hong Kong Monetary Authority

IASB – International Accounting Standards Board

IFC – International Finance Corporation

IFRS – International Financial Reporting Standards

IIFCL – India Infrastructure Finance Company Limited

INFRA – Infrastructure Recovery and Assets

IMF – International Monetary Fund

IMFC – International Monetary and Financial Committee

IOSCO – International Organization of Securities Commissions

IPAs – Issuing and Paying Agents

IPOs – Initial Public Offerings

IRB – Internal Rating Based

IT – Information Technology

ITEs – Intra-Group Transactions and Exposures (ITEs)

ITES – Information Technology-enabled Services

LAF – Liquidity Adjustment Facility

LCBGs – Large and Complex Banking Groups

LCD – Liquid Crystal Display

LIBOR – London Inter-Bank Offer Rate

LOLR – Lender of Last Resort

MAS – Monetary Authority of Singapore

MBS – Mortgage Backed Securities

MFIs – Micro-Finance Institutions

MIBOR – Mumbai Inter-Bank Offer Rate

MIGA – Multilateral Investment Guarantee Agency

MSMEs – Micro, Small and Medium Enterprises

MSS – Market Stabilisation Scheme

MTM – Mark-to-Market

M&As – Mergers and Acquisitions

NAB – New Arrangements to Borrow

NBFCs – Non-Banking Financial Companies

NBS – National Bank Supervisor

NCBP – Non-Concessional Borrowing Policy

NDA – Net Domestic Asset

NDTL – Net Demand and Time Liability

NFA – Net Foreign Assets

NFC – Non-Food Credit

NMF – Investment by Mutual Funds

NPLs – Non-Performing Loans

NRSROs – Nationally Recognised Securities Rating Organisations

OBSVs – Off-Balance Sheet Vehicles

OCR – Ordinary Capital Resources

OECD – Organisation for Economic Cooperation and Development

OIS – Overnight Indexed Swap

OLS – Ordinary Least Squares

OMO – Open Market Operation

ONI – Office of National Insurance

OTC – Over-the-Counter

OTD – Originate-to-Distribute

OTH – Originate-to-Hold

OTS – Office of Thrift Supervision

OBSEs – Off-Balance Sheet Entities

PDIC – Philippine Deposit Insurance Corporation

PDs – Primary Dealers

PPAC – Petroleum Planning Analysis Cell

PPP – Public Private Partnership

PRGF – Poverty Reduction and Growth Facility

PVAR – Panel Vector Auto-Regression

REER – Real Effective Exchange Rate

RMBS – Residential Mortgage-Backed Securities

RWA – Risk-Weighted Assets

SEBI – Securities and Exchange Board of India

SEC – Securities and Exchange Commission

SEP – Supervisory Enhancement Programme

SEZs – Special Economic Zones

SHGs – Self-Help Groups

SIDBI – Small Industries Development Bank of India

SDL – State Development Loan

SIVs – Structured Investment Vehicles

SLR – Statutory Liquidity Ratio

SMEs – Small and Medium Enterprises

SMO – Special Market Operation

SSMB – Standard Setting and Monitoring Body

SSIs – Small-Scale Industries

StAR – Stolen Asset Recovery

S&L – Savings and Loan Associations

TAF – Term Auction Facility

TARP – Troubled Asset Relief Program

TFFP – Trade Facilitation Programme

TUF – Technology Upgradation Fund

UNWTO – United Nations World Tourism Organization

VAR – Vector Autoregression

WADR – Weighted Average Discount Rate

WEO – World Economic Outlook

WTO – World Trade Organisation

This Report can also be accessed on Internet URL : www.rbi.org.in

Modification in UCO Dhan-Varsha Fixed Deposit Scheme

 Salient features of the new fixed deposit scheme ‘UCO DHAN-VARSHA’ are as under:

1.    The scheme would be applicable from May 10th, 2012 and will remain valid up to September 30th, 2012 (extension of the scheme duration revised w.e.f.01/07/2012). However, the Bank would reserve the right to modify, withdraw or extend the scheme anytime without any prior notice.

2.    Eligible Depositors under the Scheme would be same as eligible depositors in Fixed Deposit Scheme currently available in the Bank.

3.    Period of Deposit: 444 days

4.    Amount of Deposit Minimum Amount: ` 5000/- and thereafter in multiples of 1000/-. Maximum Amount:  5crore (enhancement of maximum deposit cap revised w.e.f.06/08/2012)

5.    Rate of Interest:  9.25% per annum compounded quarterly. The quarterly compounding would be done for the first four quarters and simple rate of interest would be paid on the compounded amount after the four quarters for the remaining number of days of the above deposit period. In addition to the payment of interest along with the principal at the time of maturity, Interest payment (at the option of the customer) is allowed also at quarterly rests.

6.    In all cases of premature withdrawals, the interest would be payable at 1% below the applicable rate under the normal fixed deposits for the period for which the deposit has remained with the Bank as on the date of deposit or present rate, whichever is lower.

7.    Facility for availing loan/overdraft against Deposits under the Scheme would be available as per existing guidelines for availing loan/overdraft against Bank’s own Fixed Deposits.

8.    The facility of nomination would be available under the Scheme.

9.    In the event of the death of the depositor, the deposit would be paid to the nominee/legal heirs as per the existing rules

10. No auto renewal is permitted under ‘UCO Dhan-Varsha Fixed Deposit Scheme’.  However, wherever no specific instructions are received from the depositors. Maturity proceeds will be renewed for a period of 1 year under Banks Normal Term Deposit Scheme

11.    Tax would be deductible at source as per the prevailing Income Tax rules

12. Transfer of Fixed Deposit under the Scheme within any branch of the Bank would be permissible without any charge as per the existing procedure.

13. Senior Citizen : Additional 0.50% or @ 9.75%

Verified by VISA

¢  Verified by Visa (VbV) is an easy to use, secured online payment service from UCO Bank that lets our customers secure online shopping using UCO Bank Visa Debit Card.

¢  Cards must be registered for VbV through the link provided in UCO Bank Website.

¢  At the time of on-line payment the customer can select any VISA payment gateway.

¢  At the time of on-line payment the customers has to provide the 3D-secure password selected by the customer  at the time of Registration process of VbV.

¢  With the power of Visa Debit cards, making online payment is simple and safe.

¢  Followings are the simple steps to do VbV:

1.    Open UCO Bank Website www.ucobank.com.

2.    Select Verified  by VISA

3.    Click on Register button { Existing users have to Enter Card Number, Password & click on Login Button to Login}

4.    Accept all terms & conditions and Click on “I Accept” button

5.    Enter ATM card number

6.    Enter ATM Expiry Date  

7.    Enter ATM PIN

8.    Now, click on “Next” Button.

9.    Enter other required details and

10. Click on “Submit” Button

(Remember the password for further transactions)