Service Charges

Corporate Banking

The Bank currently offers the following rates of interest for it's cash credit loans and MT NFS loans sanctioned to DCC Banks/Cooperative Institutions/Institutions outside the cooperative fold

Please Click Here to download a PDF document of our rates of interest.

Services Charges

Please Click Here to download a PDF document of our Service Charges.

DDs under AIMAS

All India Mutual Arrangement Scheme (AIMAS)

Genesis

National Federation of State Cooperative Banks Ltd., (NAFSCOB) launched `All India Mutual Arrangement Scheme (AIMAS)’ on August 21, 1965.

Scope and Coverage

The State Cooperative Banks (SCBs), their branches; The District Central Cooperative Banks (DCCBs), their branches and Cooperative Urban Banks (CUBs) and their branches in the country are eligible to become members of AIMAS. Under AIMAS, any participant cooperative bank can issue a Demand Draft payable at any other SCB or its branches or any DCCB or its branches or any CUB or its branches, provided they are members of AIMAS. At present 1156 bank offices in 26 States are members of AIMAS.

The following banking and non-banking business is permissible under AIMAS.

a.Issuing and honouring of MICR & Non-MICR Demand drafts
b.Issuing and honouring of Mail transfers
c.Collection and payment of Bills, Cheques, Dividend Warrants etc.

Role of NAFSCOB in AIMAS

a.NAFSCOB lays down the rules and regulations regarding working of AIMAS and takes all decisions related to the functioning of AIMAS, in consultation with the `Advisory Committee on AIMAS’ constituted by NAFSCOB and member participant SCBs under AIMAS.
b.NAFSCOB provides necessary direction and guidance to the member participant banks under AIMAS.
c.NAFSCOB takes final decision regarding admission and cancellation of membership of AIMAS, in consultation with the respective SCBs.
d.NAFSCOB arranges printing and supply of MICR and Non-MICR DDs and makes them available to member participant banks on their specific indent, under intimation to the respective SCB.
e.NAFSCOB arranges to circulate the Specimen Signature of the Authorized Officers of the participant banks among all participant banks under AIMAS.
f.NAFSCOB assumes the responsibility to govern and monitor the functioning of AIMAS.

Role of State Co-operative Banks

SCBs play in important role in the functioning of AIMAS though the participant member bank offices operate AIMAS. When a DD is issued or paid by a DCCB/CUB, the SCBs will have to pass necessary entries at their level. The SCBs are also required to maintain Books/Registers with regard to DDs issued/honoured etc. The SCB shall forward the copies of circulars, Specimen Signature Sheets/CDs and other information/instructions etc., on AIMAS received from NAFSCOB to all the participant member banks under AIMAS in the respective States. The SCB shall print and supply relevant `Advice forms’ under AIMAS.

Admission Criteria

a.All SCBs and their branches are eligible to become members of AIMAS.
b.A DCCB having a minimum working capital of Rs.5 crore can become a member of AIMAS.
c.A DCCB having working capital of Rs.5 crore and up to Rs.10 crore can admit a maximum number of its 5 branches.
d.A DCCB having working capital of Rs.10 crore and above can admit a maximum number of 10 branches.
e.A CUB having working capital of Rs.5 crore can become a member of AIMAS.
f.A CUB having working capital of Rs.5 crore and up to 10 crore can admit maximum number of its 5 branches.
g.A CUB having working capital of Rs.10 crore and above can admit a maximum number of 10 branches.
h.The branch to be admitted to AIMAS should be a member/sub member of the local Clearing House.

Admission Procedure

Any SCB seeking admission to AIMAS should apply directly to NAFSCOB in the prescribed Application Form (Form No.1 as given in the Operational Manual on AIMAS), along with a certified copy of the resolution adopted by the competent authority indicating the names of the Authorized Officers to operate/sign under AIMAS, along with their specimen signatures and the `Group’ under which it would like to participate for the purpose of issuing and honouring of DDs.

DCCBs/CUBs seeking admission to AIMAS should apply to NAFSCOB through the SCB of the state concerned in the prescribed Application Form (Form No.2 as given in the Operational Manual on AIMAS), along with the resolution of the competent authority indicating the names of Authorised Officers to operate/sign under AIMAS, along with their specimen signatures and the `Group’ in which it would like to participate for the purpose of issuing and Honouring the DDs.

Groups for issuing and honouring DDs

The participant member banks can participate in any of the following `Groups’ for `Issuing’ and `Honouring’ DDs under AIMAS.
Please Click Here to download a PDF document of details of groups under AIMAS.

Autorized Signatories

Member participant SCBs under AIMS can authorize up to 10 Officers per SCB and up to 5 Officers per branch office for admission to AIMAS, as Authorised Signatories.

Member participant DCCBs and CUBs under AIMAS can authorize up to 10 officers per Head Office and up to 5 officers per branch office for admission to AIMAS, as Authorised Signatories.

Admission Fees

a.DCCBs and CUBs are required to pay non-refundable ‘Admission Fees’ of Rs.2500/- per bank office, which is inclusive of `Annual Membership Fees’ for the first year.
b.Annual Membership Fees per bank office of DCCB and CUB is Rs500/-.
c.SCBs under AIMAS are exempted from payment of `Admission Fees’ and `Annual Membership Fees’.

Other costs

a.The actual cost of DDs (MICR & Non-MICR) is recoverable from the member banks.
b.The cost towards `Specimen Signatures’ sheets/CDs, Hand book on AIMAS Cypher Code System, AIMAS Directory of Member Banks and any other stationery is recoverable from the participant SCB/DCCB/CUB.

AIMAS Operational Manual

‘Operational Manual on AIMAS’ consisting functional guidelines for the benefit of participant member banks under AIMAS has been brought out by NAFSCOB. The Manual is made available to all participant member banks at cost.

AIMAS Directory of Member Banks

NAFSCOB publishes ‘AIMAS Directory of Member Banks’, consisting of member specific code numbers, name and address of all the participant member bank offices along with Telephone Numbers, Fax and Telex Numbers, E-Mail Addresses as well as the `Issuing Bank Key Numbers’ of participant banks under AIMAS. The directory is supplied to all participant member banks at cost.

AIMAS Handbook on Cypher Code System

In addition to measures adopted to ensure safety of Demand Drafts under AIMAS, an additional security feature such as ‘Cypher Code’ has been introduced by NAFSCOB. In addition to the bank specific `Code Numbers’, NAFSCOB also issues bank office specific four digit ‘Issuing Bank Key Number’ for facilitating working out the Cypher Code. Under the Cypher Code System, certain numeric values have been allotted to features such as day, date, month as well as the range of amount for enabling the banks to workout day specific ‘Cypher Code’. NAFSCOB publishes `AIMAS Handbook on Cypher Code System’ and is supplied to all participant member banks at cost. Use of `Cypher Code’ has been made mandatory under AIMAS since January, 2005.

Progress in Membership

AIMAS is a popular scheme among SCBs, DCCBs and CUBs in the country.
Please Click Here to download a PDF document of the list of members under AIMAS as on 31.03.2007.

Safe Deposit Lockers

The Bank offers Safe Deposit Lockers to it's customers. Any person who is having an account/is a customer of the Bank can hire a Safe Deposit Locker from the Bank. Lockers can be hired in single name or jointly.

Operation of the Locker

A locker can be hired in the name of an individual (in which case, he/she will be the sole operator of the locker) or in joint names, which can be operated jointly or severally (E or S) as specified by the hirers at the time of hiring the locker or from time to time.

Terms and Conditions

1)Any person hiring a locker should submit the dully filled in Locker Application along with the Locker Agreement in the required format and two photographs of the Locker hirers.
2)The Locker hirer should make a fixed deposit, which is linked to lockers and cannot be withdrawn.
3)The rent is payable strictly in advance every year on or before the due date.
4)The hirer can have access to his locker during transaction hours on all working days of the Bank.
5)It is the responsibility of the Locker hirer to pay the locker rents as applicable depending on their Locker size and also as fixed by the Bank from time to time.
6)Nomination facility is available.
7)Locker keys should be kept safely, failing which, all charges for opening the locker and replacing the lost keys shall be borne by the Locker hirer.
8)This facility may be availed for safe keeping of all your valuables.

DDs under IMAS

The Inland Mutual Arrangement Scheme (IMAS) was formulated in the year 1958 by K.S.C. Apex Bank Ltd.

Objectives

Issue of demand drafts.
Issue of mail transfers and telegraphic transfers.
Collections of Cheques/Bills etc. by member banks in Karnataka on other member banks such as State, Central and Urban co operative banks and on their Branches in Karnataka.

K.S.C. Apex Bank Ltd. is administering the Scheme and the advisory committee is being constituted for monitoring/reviewing the activities of the scheme.

The members of the advisory committee include:

1)Managing Director of K.S.C.Apex Bank Ltd., as Chairman and representative of Apex Bank
2)3 members from D.C.C. banks
3)3 members from Urban Co-operative Banks and from Karnataka State Co-operative Banks’ Federation -1 member.

The advisory committee members shall meet once in a quarter.

All D.C.C. Banks and Urban Co-operative Banks and their branches, seeking admission to become members of IMAS should apply with K.S.C. Apex Bank Ltd.

K.S.C. Apex Bank Ltd., as the sponsored Bank of the said scheme, has laid down certain rules and regulations for the working of the IMAS and modifications of the scheme. It communicates to the member banks and its branches regarding admission/withdrawal of the scheme and circulates the specimen signature of the authorized officials to all the member banks to sign the DDs. It gives the decision over any dispute that may arise under the said scheme. It makes arrangements to convene reconciliation meetings of all the member banks for speedy elimination of pending entries. Apex Bank gives guidance, education, and training programmes to all the member banks about the working of the IMAS. All the member banks under IMAS should maintain their Current Account with the head office of K.S.C. Apex Bank Ltd. They should also maintain books of records and registers and they must reconcile their accounts from time to time with their account at Apex Bank level.

Admission of the Banks

The membership of the scheme is open to all Co-Operative Banks registered under The Karnataka Co-operative Societies Act and coming under the Purview of Banking Regulation Act 1949.
The bank should have been functioning for a period of at least three years and should be a member of the local clearinghouse and in deserving cases, the Apex Bank may even consider enrolling banks that have been functioning for one year as members.
The bank should have maintained a Current Account with the head office branch of K.S.C. Apex Bank Ltd.
All DCC banks, Urban co-operative banks and their branches are eligible to become members of the IMAS Scheme, in which case the minimum working capital of the banks should be Rs. 150 Lakh.
There should not be continuous defaults in the maintenance of the cash reserves ratio and liquid assets as required under section of Banking Regulation Act 1949.
The Audit Classification of the bank should be ‘A’.
An Urban Co-operative bank having working capital of Rs. 500 Lakh can admit 5 members and a bank with more than Rs. 500 Lakh can admit 8 members.
Application enclosures include Form No. 1 and Form No. 2 for admission of banks and its branches respectively. Resolution of Board of Directors, along with competent authority empowering their officials to sign DD, advices on behalf of the banks should be included in the enclosures.
Specimen signatures of the authorized officials should be enclosed.
Latest audited balance sheet/profit and loss account/RBI/NABARD/ inspection reports should be enclosed.
A copy of the byelaws, latest annual reports and copy of RBI License should be included.
The admitted members are grouped into 3 categories and they should maintain fixed deposit and security deposit depending upon their group. Please Click Here to download a PDF document of the group details.

There are no admission/annual membership fees. The DDs, Cheques Books will be supplied by The Apex Bank Ltd. The concerned banks will meet the cost of the printing of DD books, advices. The admitted member banks/branches of the IMAS will be allocated code numbers by K.S.C. Apex Bank Ltd., for easy identification and transactions.

Withdrawal/Removal from Membership

Member banks should submit a letter (Form No. 3) 2 months in advance of the proposed date of withdrawal.
A copy of the resolution of the Board of Directors for withdrawal quoting the reason and also a letter of understanding to honour the DDs drawn on them by the member banks prior to the actual date of withdrawal.
The Board of Directors of K.S.C. Apex bank Ltd. is the competent authority to remove any bank from membership of IMAS and the Managing Director of Apex Bank Ltd., is the competent authority to remove any branch of the member bank.
K.S.C. Apex bank Ltd. shall have the right to suspend/dismember any member of IMAS by giving 30 days prior notice indicating the reasons thereof if the bank is persistently defaulting in the maintenance of the funds or not adhering to the directives of the IMAS.

Issue and Honouring of DD

All member banks shall draw MICR DDs/cheques on K.S.C. Apex Bank Ltd., Head Office Branch only. In other centers, as far as possible, DDs should be drawn on a member of the local clearing house. DDs should be written neatly in English with carbon sheet kept below the DDs and signed by 2 signatories. Alteration, if there is any, should be tested with full signatures with there code number allotted. Punching of the cages should be done to prevent fraudulent alteration of the amount of the DDs. The issuing bank should punch the number of the amount in figures on the exact cadge.
Safety stickers may be pasted on the DD amount in figure to avoid any alterations.
Limit for issue for Group ‘A’ is Rs. 5 Lakh, for Group ‘B’ it is Rs. 3 Lakh, and for Group ‘C’ it is Rs. 1 Lakh. The limits indicated are for aggregate of the DDs to be issued in a day by one member on the other bank. The drawing power of a bank under Group ‘A’ shall be Rs. 5 Lakh per day, under Group ‘B’ Rs 3 Lakh per day and under Group ‘C’ Rs. 1 lakh per day.

Cancellation of DD

The issuing bank should obtain a letter from the purchaser of the DD and intimate the paying bank and the paying bank on receipt of the letter (Form 5) must verify if the DD has already been paid, if not, stop payment should be noted and intimation should be sent to the issuing bank.

Mail Transfer and Telegraphic Transfers

A member bank can issue a mail transfer for crediting to the account of a customer at another member bank.
Telegraphic transfer includes transfer of funds by TT through SBI/SBM/SBH/ HDFC. The bank sending the TT should record the details of the TT sent in a TT register. The pending items of the TT should be followed up promptly by the concerned bank.

Collection of Cheques and Bills

The Cheques and Biills drawn on different centers can be collected through a member bank at par. The proceeds of the Cheques tendered by the customers are to be credited to their accounts and unpaid instruments should be returned immediately.
The collecting bank/branch on realization of Cheques/Bills shall send the realization advice (Form No. 9) to the K.S.C Apex Bank Ltd. for credit to the account.

Maintenance of Current Account

Each member bank should maintain a current account with the head office branch of K.S.C. Apex Bank Ltd. and all transactions under IMAS should be done through this account. The member banks should maintain sufficient balance in order to meet the daily transaction under the scheme and Overdraft facility of not less than Rs. 20 Lakh on the security of fixed deposits with the head office branch of K.S.C. Apex Bank Ltd. The interest applicable to clean OD shall be charged at the prescribed rate. If any member bank avails OD without sanction limit continuously or exceeds the limit sanctioned for long periods, K.S.C. Apex Bank Ltd. has the right to remove such members from IMAS after giving prior notice.

Each member bank should maintain DD issue registers, DD cancellation registers, stop payment registers, Bills for collection registers and TT issue registers. K.S.C. Apex Bank Ltd. shall conduct reconciliation meetings of all the member banks every quarter to eliminate the pending entries.